The Slovak real estate investment market produced nearly €500m in deals during the first half of 2018, a far quicker pace compared to 2017 which ended with just €535m worth of transactions. JLL writes that 2016 was a record breaking year for Slovakia, with €850m in transactions closing. Retail transactions were the primary target for investors, making up 45 percent of the total investment volume. These included NEPI’s acquisition of Mlyny in Nitra, while a private investor acquired City Arena in Trnava. Office transactions were responsible for 35 percent of the total investment volume, with Wood & Co buying Lakeside Park and Aupark Tower. JLL notes that the only major deal produced by Slovakia’s industrial sector was REICO’s acquisition of Dubnica Park.
“The investment market is boosted by increased demand from Slovak and CEE based investors, currently buying mainly core assets,” says Rudolf Nemec from Capital Markets department at JLL Slovakia. “There is also ongoing appetite for value add products at distressed prices, which is a very scarce product. Interestingly, more and more money is heading towards the regions – a trend which started in the retail and industrial sectors, now arriving also into offices. Slovakia again currently provides and is scheduled to provide several prime and risk-wise core opportunities, as well as core assets in non-prime locations. Combined with competitive yields compared to other CEE countries, investors may likely find the right product in Slovakia.”
