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%.
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.
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.
Cordia International, the 92,92% shareholder of Polnord, has announced a public tender offer to acquire the remaining approximately 7,08% of shares in Polnord SA.
The goal is to increase Cordia’s stake in Polnord SA to 100% of outstanding shares.
The tender offer price has been set at 3,55 PLN a share, offering significant upside to the most recent market price.
At the same time, Cordia has applied for an extraordinary general meeting of shareholders in Polnord SA, in order to make a decision on withdrawing the company’s shares from public trading.
The subscription period of shares will start on the 21st of December 2020 and last until 20th of January 2021. The day of the transaction is planned for 25th of January 2021 with settlement on the 28th January 2021.
Cordia has initially acquired a controlling stake in Polnord by subscribing for 63.7 million series ”T” shares in a public share offer in December 2019.
Later, in February 2020, Cordia announced a public tender offer for the remaining shares and increased its stake further to 92,92%.
As a consequence of Cordia’s engagement, Polnord’s financial situation has stabilised and has managed to meet all its debt obligations seamlessly.
According to the preliminary data gathered by the Statistics Office, 135.8 thousand dwellings were completed in the period of January-August 2020, by 5.5% more than a year ago.
Developers completed 87.7 thousand dwellings (9.4% more than in the corresponding period of 2019), whereas private investors completed 46.0 thousand dwellings, by 3.5% more than in 2019.
Within these forms of construction, 98.4% of the total number of completed dwellings was built (respectively 64.6% and 33.8%).
Less dwellings than a year ago were completed within cooperative construction (816 compared to 1.436 dwellings).
In other forms of construction (municipal, public building society and company construction) 1.338 dwellings were completed in total (compared to 2.718 in the previous year).
The total useful floor area of dwellings completed in the period of January-August 2020 amounted to 12.1 million m2, by 4.4% more than in the corresponding period of the previous year.
Compared to the period of January-August 2019, the average useful floor area of 1 dwelling decreased by 0.9 m2 to the level of 88.8 m2.
According to the preliminary Statistics Poland data, 97.0 thousand dwellings were completed in the period of January-June 2020, by 2.7% more than a year ago.
Developers completed 62.4 thousand dwellings (6.1% more than in the corresponding period of 2019), whereas private investors completed 32.8 thousand dwellings, by 0.9% less than in 2019.
Within these forms of construction, 98.1% of the total number of completed dwellings was built (respectively 64.3% and 33.8%).
Less dwellings than a year ago were completed within cooperative construction (661 compared to 954 dwellings); in other forms of construction (municipal, public building society and company construction), 1 179 dwellings were completed in total (compared to 1 655 in the previous year).
The total useful floor area of dwellings completed in the period of January-June 2020 amounted to 8.7 million sq m, by 2.1% more than in the corresponding period of the previous year.
Compared to the period of January-June 2019, the average useful floor area of 1 dwelling decreased by 0.6 sq m to the level of 89.5 sq m.
In the first six months of 2020, permits and registrations have been granted for construction of 122.3 thousand dwellings, i.e. by 5.5% less than in the corresponding period of 2019.
