{"id":853,"date":"2018-12-03T14:47:35","date_gmt":"2018-12-03T14:47:35","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=853"},"modified":"2018-12-03T14:47:35","modified_gmt":"2018-12-03T14:47:35","slug":"shortage-of-prime-investment-product-causing-a-decrease-in-overall-transaction-volume-in-cee-51771","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/shortage-of-prime-investment-product-causing-a-decrease-in-overall-transaction-volume-in-cee-51771\/","title":{"rendered":"Shortage of prime investment product causing a decrease in overall transaction volume in CEE"},"content":{"rendered":"
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The CEE investment market is still very attractive to institutional investors, a shortage of prime product being the biggest challenge. According to Cushman & Wakefield,\u00a0commercial real estate\u00a0in the first three quarters of 2018 the total investment volume in six CEE countries (Poland, the Czech Republic, Slovakia, Hungary, Romania and Russia) reached EUR 8.9bn. Investment activity in Poland exceeded the value recorded for the whole of 2017 and is expected to reach a record high of EUR 6bn by the year\u2019s end. Sustainable and solid performance was recorded in Hungary and Slovakia with volumes hitting those in 2017, whereas Russia, the Czech Republic and Romania are expected to close the year at lower investment volumes, slightly below the 2017 levels.<\/strong><\/p>\n

Q4 2018 is expected to be the most active period in terms of investment activity, with a promising pipeline. If all planned transactions are closed as expected, the total investment volume in the six countries of the region will reach approximately EUR 13bn, less than the previous year\u2019s EUR 15.3bn.<\/p>\n

\"Jeff
Jeff Alson, Partner CE, Capital Markets, Cushman & Wakefield<\/figcaption><\/figure>\n

Institutional investors\u2019 major focus is still office and retail sectors – with a 42% and 41% share in total volume respectively, although other asset classes – like hotels and PRS – are also on their radars.\u00a0Jeff Alson, Partner CE, Capital Markets, Cushman & Wakefield, said:\u00a0<\/em><\/strong>\u201c<\/em>Investor demand continues to be focused on prime product with prices remaining very robust. This is being supported by the very strong occupier market in most segments. Global investors appear to be more comfortable with the relative risk of CEE compared to other markets. Regardless, they are still enjoying a premium return compared to Western Europe<\/em>.\u201d<\/em><\/p>\n

Commercial real estate investment volumes by country (in EUR million)<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n
Market<\/strong><\/td>\n2014<\/strong><\/td>\n2015<\/strong><\/td>\n2016<\/strong><\/td>\n2017<\/strong><\/td>\nQ1-Q3 2018<\/strong><\/td>\n<\/tr>\n
Poland<\/td>\n3,096<\/td>\n4,089<\/td>\n4,591<\/td>\n4,663<\/td>\n4,831<\/td>\n<\/tr>\n
Czech Republic<\/td>\n1,995<\/td>\n1,941<\/td>\n3,380<\/td>\n3,631<\/td>\n1,210<\/td>\n<\/tr>\n
Hungary<\/td>\n617<\/td>\n810<\/td>\n1,671<\/td>\n1,760<\/td>\n1,150<\/td>\n<\/tr>\n
Russia<\/td>\n3,332<\/td>\n3,651<\/td>\n2,841<\/td>\n3,533<\/td>\n667<\/td>\n<\/tr>\n
Romania<\/td>\n1,049<\/td>\n584<\/td>\n708<\/td>\n1,251<\/td>\n661<\/td>\n<\/tr>\n
Slovakia<\/td>\n495<\/td>\n98<\/td>\n807<\/td>\n421<\/td>\n426<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Commercial real estate investment volumes by asset types (in %)<\/strong><\/p>\n\n\n\n\n\n\n\n\n
Sector<\/strong><\/td>\n2009<\/strong><\/td>\n2010<\/strong><\/td>\n2011<\/strong><\/td>\n2012<\/strong><\/td>\n2013<\/strong><\/td>\n2014<\/strong><\/td>\n2015<\/strong><\/td>\n2016<\/strong><\/td>\n2017<\/strong><\/td>\n2018<\/strong><\/td>\n<\/tr>\n
Hospitality<\/td>\n5.23%<\/td>\n3.57%<\/td>\n8.17%<\/td>\n9.67%<\/td>\n3.18%<\/td>\n2.95%<\/td>\n4.00%<\/td>\n2.91%<\/td>\n5.73%<\/td>\n2.70%<\/td>\n<\/tr>\n
Industrial<\/td>\n5.02%<\/td>\n11.81%<\/td>\n12.18%<\/td>\n11.17%<\/td>\n15.95%<\/td>\n20.24%<\/td>\n12.47%<\/td>\n18.57%<\/td>\n17.72%<\/td>\n13.83%<\/td>\n<\/tr>\n
Mixed Use<\/td>\n0.00%<\/td>\n0.33%<\/td>\n1.89%<\/td>\n9.76%<\/td>\n1.01%<\/td>\n3.62%<\/td>\n1.95%<\/td>\n0.34%<\/td>\n0.77%<\/td>\n0.38%<\/td>\n<\/tr>\n
Office<\/td>\n70.27%<\/td>\n48.03%<\/td>\n42.08%<\/td>\n36.00%<\/td>\n43.22%<\/td>\n45.64%<\/td>\n36.82%<\/td>\n48.43%<\/td>\n34.76%<\/td>\n42.11%<\/td>\n<\/tr>\n
Retail<\/td>\n19.48%<\/td>\n36.26%<\/td>\n35.68%<\/td>\n33.40%<\/td>\n36.63%<\/td>\n27.55%<\/td>\n44.76%<\/td>\n29.76%<\/td>\n41.02%<\/td>\n40.98%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Country breakdown<\/u><\/strong><\/p>\n

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