The property investment market in the CEE Region stays active

Industrial and Logistics, the darling sector of 2021 sought-after by almost every institutional investor stays atop the shopping list of most in 2022, albeit recording lower investment volumes due to a lack of available products, Avison Young stated. Demand is propelled by almost zero vacancies across the region which is driving rental growth in all geographies. Yields compressed in Czechia (CZ) & Slovakia (SK), remained stable in Poland (PL) & Romania (RO) and moved out in Hungary (HU). Liquidity remains very strong and RO and HU look particularly attractive today in terms of both yield and rental rate.

The residential sector is still heating up despite rising interest rates. A growing number of institutional investors view this segment as a safe bet as we enter a macroeconomic slowdown. Increased mortgage rates force a portion of the demographic to rent, driving demand for rental properties and in turn, rental rates. Many residential developers have created a second pillar of their business by keeping some projects on their books, creating special residential funds, or forward selling to institutional investors.

The office sector has traditionally taken the lead in most countries, and it remains the largest volume maker (36 percent of total volume across CEE) in the first half of 2022. 

(WBJ)