Money Buzz! Europa

Category: Real Estate

  • Almost 10 billion euros invested in real estate assets in CEE last year

    Almost 10 billion euros invested in real estate assets in CEE last year

    The volume invested in real estate assets in Romania, Poland and Slovakia increased in 2021, while the Czech and Hungarian markets witnessed a downturn when compared with 2020.

    At regional level, the total transacted volume reached 9.98 billion euros, a 4.3% decrease compared with the previous year, says Cushman & Wakefield Echinox.

    The Polish market registred a growth of 8.3%, while the transacted volume in Slovakia was 54.2% higher in 2021 than in the previous year.

    On the other hand, Czechia registered a 36% drop in transactions pertaining to income-producing assets, while the volume in Hungary declined by 18.2%.

    In Romania, 54 transactions with real estate assets were completed last year, twice more such transactions in comparison with 2020.

    Total investment volume in Romania reached 916 million euros, up 0.2%.

    CountryTransactional Volume 2021 (mil. EUR)Transactional volume 2020 (mil. EUR)
    Romania916914
    Czechia1.7212.689
    Hungary8811.077
    Slovacia774502
    Poland5.6915.254
    Total9.98210.435
  • House prices on the rise in all European Union countries

    House prices on the rise in all European Union countries

    House prices are up in all EU Member States in the third quarter of 2021 compared to the previous three months.

    Thus, according to Eurostat, prices increased the most in the Czech Republic (7.3%), the Netherlands (5.9%), Lithuania (5.4%) and Ireland (5.1%).

    A much lower increase was registered in Romania (0.1%), Finland (0.2%) and Denmark (0.3%).

    Strong increase of house prices compared to 2010

    Comparing the third quarter of 2021 with 2010, house prices are on the rise in 23 EU member states.

    The highest increases were recorded in Estonia (+ 141%), Hungary (+ 118%), Luxembourg (+ 117%), Latvia (+ 106%) and Austria (+ 104%).

    House prices fell compared to 2010 in Greece (-28%), Italy (-12%), Cyprus (-6%) and Spain (-0.5%).

  • Immofinanz to build 12.000 new apartments on top of STOP SHOP retail parks

    Immofinanz to build 12.000 new apartments on top of STOP SHOP retail parks

    With Top on STOP, single-storey STOP SHOP retail parks will be overbuilt to create low-price housing and to create up to 12,000 new apartments.

    Immofinanz‘s STOP SHOP portfolio currently covers roughly 100 locations in ten European countries, and plans call for an increase to 140 properties over the coming years.

    The potential for this new housing concept is, therefore, substantial.

    Over the medium term, we plan to overbuild roughly 50% of our current and future STOP SHOP locations with affordable rental apartments says Stefan Schönauer, CFO of IMMOFINANZ.

    The Top on STOP apartments will meet high sustainability criteria and includes the use of photovoltaics, heat recovery and geothermal energy.

  • Real estate investments down by 22% at 4.9 billion euro in CEE

    Real estate investments down by 22% at 4.9 billion euro in CEE

    At the Central and Eastern Europe (CEE) level, the investment flows are down by 22% YoY, with a total value of investment transactions worth about 4.9 billion euro in H1 2021.

    Poland remained leader in the region, with investment volumes accounting more than half of the overall CEE6 invested capital in the first semester of the year.

    Czech Republic and Hungary, with a 20% share and 10% respectively, followed, as Colliers stated in its CEE Investment Scene H1 2021 report.

    The office sector was dominant all over the region in the first semester of 2021 in terms of transactional activity, with a share of 39%% of the total volume of investments.

    It is followed by industrial and logistics spaces that are up significantly as investors diversify into this seemingly Covid-proof sector (25%) and away from retail and hospitality sectors (20%).

    Furthermore, Colliers consultants estimate that CEE 2021 year-end volumes will accelerate to reach similar levels to 2020, of around 10 billion euro.

  • Investors are planning to allocate more money to residential assets

    Investors are planning to allocate more money to residential assets

    Investors are planning to allocate more money to the purchase of residential assets in Europe this year, JLL shows.

    This type of investment is set to grow throughout 2021, following the robust performance of the market throughout 2020, which resulted in €83.4bn being invested into the sector.

    Living assets made up 13% of asset allocations from respondents, with that set to increase to 21% if full investment ambitions were realised.

    With only 11% of respondents looking to decrease their allocation to Living assets, the hunt for suitable stock to invest in is becoming increasingly competitive.

    The percentage of respondents looking to increase their allocation to Living assets has grown steadily since the first Living Investor Survey from 41% to 59%.

    While investors are determined to increase their allocation to the sector, 78% have identified a lack of suitable product as being a major barrier to accomplishing this.

    While only 8% of respondents have exposure to all five sub-sectors of Living assets, JLL’s forecast expects this to grow to 27%.

    Clearly there is a substantial shift towards diversifying investments in the Living sector, and investors will be growing operational expertise to meet these ambitions.

    Not only are investors looking to diversify within Living assets, but nearly two-thirds (63%) of respondents said they are looking to expand to at least one additional market.

    Addressing barriers to entry from an investment perspective, 78% of respondents identified a lack of suitable product as restricting them from investing.

    This is evidenced by the fact that 30% of all purchasing activity in 2020 was for assets not yet completed.

  • Cushman & Wakefield Echinox to attract investors for Rehau properties in Romania

    Cushman & Wakefield Echinox to attract investors for Rehau properties in Romania

    The German group Rehau has appointed Cushman & Wakefield Echinox to manage the sale process of two production units in Cluj (Apahida) and Bucharest (Tunari).

    Rehau has an ongoing relocation process of its offices in central locations and the construction of a new hub in Sibiu by the end of 2022.

    Rehau Cluj is located near Apahida train station and has 16,900 square meters, the production and storage space has 2,000 square meters, and the office space 1,000 square meters.

    Rehau Bucharest is located in Tunari, the land area has 25,500 square meters, the production and storage space has 1,900 square meters and the office space 1,650 square meters.

  • VisionApartments buys former Ramada Majestic hotel in Bucharest

    VisionApartments buys former Ramada Majestic hotel in Bucharest

    VisionApartments has signed the purchase agreement of the former Ramada Majestic Hotel, located in the business center of Bucharest.

    The historic hotel features 111 rooms and 450 m2 event space, consisting of 6 meeting rooms which can accommodate up to 300 guests.

    A gym, a spa area with a heated pool, a jacuzzi as well as a bar, a restaurant, and a business center are part of the unique property.

    The hotel was built in 1920 and is located in the heart of Bucharest on Calea Victoriei, near Universitatii Square.

    Established in Switzerland in 1999, VisionApartments offers tailored temporary living solutions in over 850 business locations worldwide.

  • City Point is the first residential complex in Romania LEED Gold certified

    City Point is the first residential complex in Romania LEED Gold certified

    Point Development has successfully completed the LEED certification process for the second construction stage of its resi-scheme City Point Bucharest.

    At the end of last year, the project received the LEED for Neighbourhood Development: Plan and Design (LEED-ND) certificate on behalf of the US Green Building Council.

    Thus, City Point becomes the sixth project in Europe certified LEED-ND and the third certified as Gold. The whole process was coordinated by Colliers Romania.

    Started in 2019, the extension works of the project involve an investment of EUR 100 MLN and will be completed in 2023.

    Phase II will deliver over 400 units displayed over three buildings with a height regime GF + 12F, respectively GF + 18F, to which to which are added 500 parking spaces.

    City Point offers more than 6,000 square meters of green spaces with pedestrian alleys and running track, multifunctional buildings that will accommodate SPA facilities, a gym and commercial spaces.

  • Bucharest: 1 billion euros invested in middle&upper class housing projects

    Bucharest: 1 billion euros invested in middle&upper class housing projects

    Real estate developers active in Bucharest are investing a total of 1 billion euros in middle & upper class housing projects, according to Bucharest Real Estate Club.

    The total investments volume, on all sub-segments of the Bucharest real estate market is 3.5 billion euros (of which the residential sector – middle & upper class quality projects represent a total of 1 billion euros).

    The area that keeps on attracting most of the quality projects investments is the Northern part of Bucharest, with its sub-markets Barbu Vacarescu – Floreasca, Aviatiei, Pipera, Baneasa, Expozitiei, Sisesti – Straulesti.

    National Real Estate Cadastre Agency data show a residential sales volume higher by 19% in 2020 as compared with 2019, despite a 2 months blockage during the lockdown period at pandemic outbreak.      

    2-rooms apartments remain prioritary in the development mix for the middle segment, as they are most wanted by buyers and price – affordable.  

    Individual houses and villas demand increases by 30%, but most projects focus on apartments well located within the City and served by various facilities.

    Pandemic favors projects with multiple facilities for the living communities: green areas, children playgrounds or special areas designed for outdoor sports.

    Considering the evolution towards a new hybrid work format (several days from home and several days from the office), developers also consider the idea to include an office area in the new housing layouts, which can improve the confort of working from home.

    The luxury segment continues its development trend, with more and more sophisticated clients, whose incomes were not affected by the pndemic and who that pay up to 4-5.000 EUR/sqm for exclusive properties. 

  • 10.4 billion euro, investment volume in the 6 largest countries in Eastern Europe last year

    10.4 billion euro, investment volume in the 6 largest countries in Eastern Europe last year

    Romania almost doubled its share in the region’s turnover over the previous year and entered the big league, after Poland and the Czech Republic, but before Hungary, Slovakia and Bulgaria.

    In a year severely affected by the pandemic, in which Poland, Czech Republic and Hungary all saw year on year declines in volumes, Romania, Slovakia and Bulgaria all saw positive trends.

    Overall, volumes in 2020 declined by 24% compared to 2019 with the year closing at about 10.4 billion euro.

    Poland remained leader in the region, with investment volumes accounting for 51% of the overall CEE6 total with a total value of investment transactions worth 5.2 billion euro.

    Czech Republic followed with a 26% share, thanks to a large residential portfolio sale.

    Romania completes the top with a 8.5% share and a volume in the area of almost 900 million euro (up by about 40% over 2019).

    The transaction completed by NEPI Rockcastle, advised by Colliers, involving the sale of four office projects to AFI Europe accounted for almost a third of the local investment market in 2020.

    The office sector was dominant all over the region in 2020 in terms of transactional activity, with a share of 41% of the total volume of investments, followed by industrial and logistics spaces sector (32%) and away from the more challenged retail and hospitality sectors (12%).

    Bucharest, highest yields in the region

    Bucharest has some of the highest yields in the region for the office sector (7%), compared to at most 4.25% in Prague, 4,65% in Warsaw or 5.25% in Budapest.

    Going forward, rents will remain relatively stable, with prime headline still around 18 euros per square meter in the office sector in Bucharest (and an average in the region of 14 euro per square meter).

  • Total CEE investment volume at over €9.7 billion in 2020

    Total CEE investment volume at over €9.7 billion in 2020

    The total CEE investment volume in 2020 reached a total of over €9.7 billion, representing an almost 32% decline from 2019, JLL reports.

    Poland continued its dominance with 57% of total CEE volume and notably a strong year in logistics. Q1 was very active with roll-over deals from 2019 but as the year progressed volumes declined compared to previous years with a country total of €5.6 billion.

    This is a 30% decline from 2019, but still the 3rd highest volume on record.

    Czech Republic registered the largest deal in its history with the Residomo transaction of €1.3 billion

    Excluding this transaction, the Czech market saw a 52% decline in volumes. Investor demand remains strong for core product but there were limited core office transactions – notably only Churchill Square and Rustonka, both in Prague.

    Investment volumes declined by 32% in Slovakia

    In Slovakia, despite a very promising start to the year and expectations of 1bn, investment volumes actually declined by 32% as a result of Covid-19.

    Investor demand remains in strong for core and core+ industrial product as the occupational market recovered in Q4 2020.

    CEE Investments Volumes / Data gathered by JLL

    In 2020, prime yields saw some upward pressure in comparison to 2019, with the most visible decompression in the office and retail sectors. The logistics sector is expected to see some small compression as 2021.

    In Hungary there was a smaller decline of 25% with a market dominated by the office sector representing 65% of investment volume.

    The previous high dominance of domestic capital in 2019 has been reversed back in 2020 to an equal split between foreign and domestic capital.

    Romania, the only country in the region to show an increase

    In Romania, 2020 started with a large pipeline of transactions; several high-profile office deals were in advanced stages of negotiation.

    While the outbreak of COVID-19 had a significant impact on the investment market, the total transaction volume for 2020 represented a significant increase from 2019.

    The only country in the region to show an increase, driven mainly by the large NEPI Rockcastle portfolio acquired by AFI.

  • 468.3 thousand real estate transactions recorded in Poland in 2019

    468.3 thousand real estate transactions recorded in Poland in 2019

    In 2019, 468.3 thousand real estate transactions were recorded in Poland. The majority of real estate purchase/sale transactions took place in urban areas, 61.1% of the total.

    The number of real estate purchase/sale transactions recorded in 2019 was by 0.4% lower than in 2018 and the total value of concluded transactions increased by 0.5% compared to 2018.

    The average usable floor area of residential premises sold on the primary market in 2019 amounted to 56.8 m2 and on the secondary market to 53.2 m2.

    The average usable floor area of commercial premises amounted to 75.4 m2, of office premises – 92.3 m2 and of garages – 34.6 m2.

    In 2019, the prices of residential premise were by 8.7% higher than the year before (in 2018 – by 6.5%). The growth in prices occurred both on the primary market and on the secondary market (by 6.7% and 10.4% respectively).

    The average price per 1 m2 of usable floor area of residential premise sold on the primary market amounted to PLN 5,752 and on the secondary market – PLN 4,840.