CEE investment activity on the rise – report
17:07
The total commercial real estate investment volume in Central and Eastern Europe reached €4.4 billion in the final quarter of last year, which marks a 27 percent increase y/y, according to the latest report by Cushman & Wakefield. The figure recorded in Q4 brought the combined 2016 volume to more than €11 billion, an 11 percent increase on the previous year, the study said. Interestingly, by putting up such a strong performance the region bucked the wider trend seen in other parts of Europe where investment volumes shrank y/y in 2016, Cushman & Wakefield experts noted in the report. “The significant increase in Q4 2016 activity demonstrates that the CEE market is picking up momentum with growing depth and diversity. 2017 will be characterized by scarcity of stock across Europe relative to large equity allocations. Investors will follow occupier trends in search of sustainable value so CEE offices and logistics look particularly attractive with absorption exceeding supply and rents bottoming out in core locations,” said James Chapman, partner CE, capital markets, at Cushman & Wakefield. Poland attracted almost half the capital invested in CEE last year. Offices overtook retail as the most popular asset class in 2016, accounting for investment transactions valued at a total of more than €4 billion. Retail and logistics investment volumes stood at €3.6 billion and €2.3 billion respectively.
