Money Buzz! Europa

Tag: real estate cee

  • 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
  • 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.

  • 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.

  • €9.9 billion cumulative value of real estate properties transacted in CEE in 2020

    €9.9 billion cumulative value of real estate properties transacted in CEE in 2020

    Romanian market was the only one which recorded a growth of the investment volume in the real estate market in the entire CEE/SEE, in 2020 compared to 2019.

    As such, real estate properties with a cumulative value of €9.9 billion were transacted in the region in 2020, an almost 29% decrease from the 2019 volume.

    Poland, which has the highest share in the total volume (57%), recorded a 27% decrease, Hungary even more at -35%, while Czech Republic had the most dramatic drop at 60%.

    CEE & SEE investment volumes (mil. €)