Investor sentiment across the CEE region remains strong but flow volumes are down by 22% y/y

According to Colliers, leading diversified professional services and investment management company, the CEE markets continue to feel some impact on transactional activity with flow volumes down ca. 22 percent y/y. Poland captures more than half of all invested capital in the first half of the year. Colliers estimates for 2021 that year-end volumes will remain between €10-11 billion.

“All countries in the region recorded declines on an annual rate in volumes compared to the same period of 2020 and 2019, except for Hungary and Slovakia. Despite the slow start, investor sentiment remains strong and suggests a pick-up in activity in H2, subject to available product and improved travel possibilities,” Kevin Turpin, Regional Director of Research, CEE, Colliers, said.

Colliers has recorded compression of between 25-200 bps in prime industrial & logistics yields since the start of the year as the sector maintains great fundamentals and strong demand.  Prime office yields outside of Warsaw and Prague have also moved in slightly, by as much as 25 bps. Some further decompression has been applied in some markets in the Shopping Centre sector as it tries to recover from the operational restrictions imposed over the past 16 months. 

The office sector again dominated in the first half of 2021. Logistics and residential continue to attract strong demand from investors but, remain to be held back only by the shortage of supply as opposed to demand. Retail volumes continue to be supported mainly by retail parks and supermarket assets. Hotel volumes remain limited. 

(WBJ)