The volume of real estate investments in 2015 in the core countries of Central and Eastern Europe rose 14 percent to €8.4bn, well-above most expectations and predictions following a strong 2014. In a new report, CBRE writes that Poland and the Czech Republic dominated the field (with €4bn and €2.7bn respectively) but Hungary, Slovakia and Romania also performed well.
“The high appetite for good retail products, evident from 2013 and 2014 translated into strong numbers in 2015,” wrote CBRE. “For the first time, retail accounts for 43% of the total investment volume for CEE. This y-o-y increase is substantial – over 160% and is based on a multitude of big-size investment deals done for prime, dominant shopping centers located in Czech Republic and Poland.”
In all, €9.55bn worth of investment took place across CEE, an increase of 19 percent and an all-time high. CBRE notes that Hungary’s volume was up 42 percent y-o-y but that it should grow again in 2016 as investors are showing increasing interest there. On the other hand, the drop in volume in Romania should be seen in the context of an unusually strong 2014.
“This year we have seen strong investment into the region as investors from within Europe are looking to take advantage of relatively high yields and strength of available stock on the market,” says Gijs Klomp, Head of CEE Investment Properties. “In 2016, we expect this to continue as the stage is set for strong economic growth in the CEE, relatively high yields compared to Western Europe and increasing interest from banks to finance in the region…We also expect to see an increasingly diverse investor profile as Asian investors aim to increase their presence within the area.”
