While residential topped the sectors in the CEE region in the first quarter of this year, offices (at 27 percent) have maintained their place in the order of preference, closely followed by industrial and logistics (with a share of 26 percent), according to Colliers International. The deal volume was very healthy in Q1, totaling approximately €3.9bn, although the result was supported by some deals that spilled over from 2019. As a result, Poland and the Czech Republic accounted for approximately 86 percent of the total volume. Hotels and retail were the worst hit sectors following the implementation of the coronavirus lockdown measures. Both had expected strong levels of activity. “In addition to buyers, potential sellers may also decide to hold off on marketing until there is more clarity. However, owner occupiers are quite likely to consider sale-and leaseback options, if there would be a need to raise operational capital. The alternative funding option would be government-backed or alternative bank credit, which may be restricted despite attractive interest rates,” said Kevin Turpin, regional director of research at Colliers International.
