13:56 29 August 2019
Prague, Warsaw with largest increases in investment activity
Commercial property investment activity in the European capitals decreased by 8% y/y in the first half of this year, whereas the overall drop in their national markets amounted to 17%, according to the latest report by Savills. Nevertheless, in a number of cities the activity actually increased significantly: Prague and Warsaw (where the H1 2019 investment volume reached €1.3 billion) – the two European leaders in this respect – the H1 2019/H1 2018 growth rates stood at 124% and 119% respectively.
“Despite unprecedented global liquidity driving demand for real estate in Europe, limited availability of quality product, coupled with investors holding onto assets for longer, is restricting activity. This has meant investors have begun turning their attention to these secondary markets in which yields are more attractive. This is a trend we expect to see continue as we push on into H2,” commented Marcus Lemli, head of investment for Europe at Savills.
