According to Savills latest research, total property investment activity in Poland, the Czech Republic, Slovakia, Hungary, and Romania for Q1-Q3 2020 was €7.6 billion, the third-highest volume on record, despite the global Covid-19 pandemic. Total investment volumes by year-end are forecast to surpass €10 billion, which would be in line with the five-year average.
The figures have been boosted by a number of portfolio transactions since the beginning of the year, accounting for 44 percent of the total investment turnover compared to 24 percent last year. The shares were particularly high in Poland (47 percent) and the Czech Republic (67 percent). Some of the largest transactions of 2020 took place in these two markets, such as the €1.3 billion Residomo apartment portfolio in the Czech Republic in Q1 and the €1 billion Goodman industrial portfolio across the region in Q3.
While offices continue to represent the largest market share at 38 percent, logistics now accounts for 30 percent of the total, overtaking retail at 11 percent, according to the international real estate advisor. At €2.3 billion, industrial investment over the first three quarters has already surpassed last year’s total.
“With more than 50 percent of the total investment volume of ca. €7.6 billion in Q1-Q3 2020 in CEE countries we monitor, this was Poland that attracted the majority of the capital into CRE sectors. The Czech Republic was the second-largest market with almost 30 percent of the transactions in value terms. The activity of CEE investors in Poland continued in the first three quarters of this year (e.g. acquisition of majority stake in GTC by Hungarian Optimum) and we expect it will remain noticeable also in the next ones. We observe increasing interest in the alternative sectors such as PRS, student housing, and data centers which will likely continue next year,”.Marek Paczuski, Director, Deputy Head of Investment, Savills Poland, commented.