Investment activity in the core CEE markets is holding up against a background of pan-European decline, according to latest analysis by Cushman & Wakefield.
Investment in Poland, the Czech Republic, Slovakia, Hungary and Romania dipped by 5% in the first quarter of 2016, compared to the 14% fall recorded for Europe overall. The Q1 volume of €1.4 bn was also above the average figure of €1.2 bn for the years since 2007.
Poland remained the primary destination for international capital in Q1 2016, accounting for exactly half the 44 transactions in the region and more than €500 mln of activity.
Jeff Alson, partner CE, capital markets at C&W, said: 'There is an increasing balance to the figures in 2016. All countries in the CEE region are contributing to the overall activity and investor interest is spread across the sectors. The volumes are less reliant upon single, large transactions although there are a number of these likely to complete in H2 2016. These are all strong indicators of a robust, healthy market.'
Elsewhere, significant growth was recorded in Hungary (up by 18% to €132 mln) and Slovakia (€175 mln). Romania, with €288 mln, claimed second place, overtaking the Czech Republic, which recorded a 68% fall to €278 mln.
In terms of property type, offices took the largest market share, increasing by 252% to €621 mln, while the previously dominant retail sector shrank by 28% to €574 mln. The industrial sector also fell by 61% to €180 mln.
The largest single property transaction in CE in Q1 2016 was the Central Bratislava Shopping Centre in Slovakia (pictured) bought by Allianz Real Estate from Immocap for €175 mln. The largest portfolio transaction was the portfolio of retail assets across the Czech Republic acquired by Palmer Capital from Atrium for €103 mln.
Overseas investors accounted for 75% of all activity, slightly below the long-term average of 80%.
