Poland becomes leader in investment market in Central and Eastern Europe

According to the latest Colliers report entitled CEE Investment Scene Q1-Q4 2020, last year the value of investments in Central and Eastern European countries amounted to €10.4 billion, which is a decrease of 24 percent compared to 2019. Although Poland and the Czech Republic recorded a decrease in investment volume until a year, their share in the total value of investments in Central and Eastern Europe was the largest and amounted to 51 percent and 26 percent, respectively.

“The first quarter of 2020 in Poland was very intense – contracts were closing until the end of March. Later, however, the vast majority of transactions were frozen. The main reason was the uncertainty as to the dynamics of the rental market and the macroeconomic situation. However, despite the successive waves of the pandemic, the final value of transactions at the end of last year turned out to be much better than expected, reaching €5.3 billion in transactions concluded in Poland in all market sectors. Although this is a decrease of about 30 percent compared to the previous year, over €5 billion is a very good result, taking into account the circumstances and the fact that in Poland there is practically no domestic institutional capital investing in commercial real estate,” Piotr Mirowski, senior partner, director of the Investment Advisory Department at Colliers, said.

Year-on-year increases in the value of investments were recorded in Romania, Slovakia, and Bulgaria. By comparison, Europe, Middle East, and Africa (EMEA) region experienced an estimated decline in the investment value of around 27 percent y/y with Global Capital Markets: 2021 Investor Outlook showing a strong rebound in 2021.

(WBJ)