The Central and Eastern European market continues to attract investors, although lack of available stock may not be able to meet demand.
The CEE Investment Scene H1 2022 report by Colliers highlights the robust post-Covid recovery of Poland, Hungary, Romania and the Baltic States.
However, it raises a warning that CEE economies in H2 2022 may be impacted by global inflationary pressures, increased interest rates, supply chain concerns, and a potential Chinese recession.
CEE volumes in H1 2022 amounted to around €5.3 bn (+8.5% y/y), with strong M&A activity, while year-end volumes are expected to exceed €9-10 bn.
Kevin Turpin, regional director of capital markets, CEE at Colliers, commented: ‘Investors currently have a complicated playing field, considering the relative geographical vicinity of the war in Ukraine and its wider implications on fuels, energies and further disruption to supply chains, plus the less than positive macroeconomic and geopolitical trends that are developing. That said, these are not exclusive challenges to the CEE region, or its individual countries, and opportunities should be considered accordingly.’
Poland accounted for 56% of H1 2022 volumes, followed by the Czech Republic (16%) and Hungary (12%).
The office sector dominated, with particularly robust activity in Poland, followed by retail due to the sale or share sale in the Tesco and EPP portfolios.
Logistics and residential are still in high demand but are being constrained by a shortage of supply.
CEE domestic capital was the most active in H1, accounting for 40% of total volumes, topped by Czech (20%) and Hungarian capital (11%).
