The total volume of Asian capital (coming from Singapore, the Philippines, China, South Korea and Malaysia) invested directly in the real estate markets of Central and Eastern Europe since 2013 has already reached €7.7 billion, according to a new report by Skanska, Colliers International and Dentons. By comparison, German property investors invested €8.6 billion in CEE in the period in question, the study said.
“Investors from Asian markets have already made purchases in Poland, the Czech Republic, Slovakia and Hungary, with other markets potentially within the scope of their interest. Typically targeting long-term income, they have emerged as major competitors to Germany-domiciled funds, which have been market-makers in the region for years,” said Luke Dawson, managing director, head of capital markets, CEE, at Colliers International.
David Dixon, a partner at Dentons in Warsaw with a focus on cross-border real estate transactions, noted that South Koreans in particular have made their presence known in CEE over the last year. “Favorable exchange rate considerations and higher yields in CEE, coupled with the availability of first-class office buildings and logistics developments should continue to stimulate Asian investment in the coming months,” he argued.
(Warsaw Business Journal)