The latest data on central Europe commercial property investment shows strong growth in the sector. According to Cushman and Wakefield investors invested 1.73 billion Euros in commercial property in central Europe's core markets in the first half of this year, a 24 percent increase on last year.
According to the report 52 transactions were completed within Poland, Slovakia, Czech Republic, Romania and Hungary in the six-month period, up from 31 in the same period in 2012. Poland once again dominated the region, with 72 percent of all investment in the second quarter going into the country, while Czech Republic and Slovakia tied for second with 100 million Euros each during the same period.
"Whilst activity in the first half of 2013 was somewhat predictable, with Poland dominating, the real interest is in the coming six months," Charles Taylor, partner at Cushman & Wakefield, said in a release. "We expect positive news to emerge shortly regarding closed transactions in the Czech Republic and possibly Hungary too."
The report detailed several signed transactions that haven't yet closed, including the Silesia City Centre, Katowice, Poland for Euro 412 million, the Charter Hall Portfolio, (Szczecin, Wroclaw, Gliwice, Katowice, Krakow), Poland for Euro 174.5 million and the Galeria Dominikanska, Wroclaw, Poland for Euro 151.7 million. Thanks to these as well as the aforementioned upcoming transactions in the Czech Republic and Hungary Cushman and Wakefield predicts that year end investment will beat last year's volume of 3.8 billion Euros.
In the second quarter the office sector dominated and outperformed retail for the fifth consecutive quarter with 50 percent of the investment activity. Meanwhile logistics accounted for just 10 percent of investment volumes, a decline from the previous two quarters the report said.
- Monday 08 July 2013