CEE investment volumes up 30%

Real estate investment in Central & Eastern Europe reached €3.7 bn in the first five months of 2013, according to CBRE.

The figure represents a 30% increase on the volumes recorded for the first six months of 2012.

To date, 10 transactions worth over €100 mln each have been closed in 2013 across CEE, confirming investor demand for substantial acquisitions. This trading of high quality, large lot sizes is expected to continue and will remain a driver of strong investment flows into CEE over the remainder of the year, CBRE says.

A number of large scale properties and portfolios are anticipated to be signed soon, including the sale by Immofinanz of Silesia City Center in Katowice, a large scale shopping centre being acquired for the sum of over €400 mln by a consortium led by Allianz Real Estate.

With transaction volumes of around €750 mln to end-May 2013, Poland saw less activity relative to previous quarters. However, a strong asset pipeline and several significant preliminary signings are expected to push up investment volumes later in the year, says CBRE.

Strong trading in Russia (€2.5 bn) has resulted in total property investment volumes at around two thirds of the dealings seen during the whole of 2012.

CBRE noted that investors are gradually entering the non-prime market segment, with most interest focused on Poland and the Czech Republic.