CEE real estate investment: facts and figures

PropertyEU has compiled the latest facts and figures on the real estate markets in CEE ahead of Friday's Investment Briefing in London on the region.

CEE Investment Briefing
Date: 26 April 2013
Time: 08:00 - 10:30
Location: CBRE, Henrietta House, Henrietta Place
London W1G 0NB, UK
Event details

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INVESTMENT IN FIGURES

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CBRE: Russia and Poland accounted for the overwhelming majority of real estate investment in Central & Eastern Europe in the first three months of 2013. Total commercial real estate investment in the region reached €2.6 bn in Q1. Russia dominated with €1.8 bn of deals, followed by Poland at €600 mln.
Russia, Poland drive CEE volumes in Q1

JLL: Total investment in Russian commercial real estate reached $2.1 bn (€1.6 bn) in the first quarter of 2013, up 116% on the year-earlier period. The spike in volumes for the first three months of 2013 was mainly due to the closure of Morgan Stanley Real Estate's acquisition of the Metropolis shopping centre in Moscow for an estimated $1 bn.
Russian investment volumes jump 116% in Q1

Cushman & Wakefield: Investment activity in the key Central European markets of Poland, Czech, Slovakia, Hungary and Romania was maintained in the first quarter of 2013 with €958 mln invested, some 6% above the 5 year average. Whilst down on the previous quarters €1.826 bn, positive investor sentiment and underlying activity suggests investment volumes for the year should match those achieved in 2012.
Central Europe investment edges upwards

Savills: The total investment volume in Poland exceeded €2.7 bn in 2012, reflecting 8% growth compared to 2011 and the highest level since 2006. Office and retail transactions dominated the investment market, however, the warehouse sector increased its share to 17%. The momentum will continue in 2013, resulting in a total investment
volume in the range of €2.0-2.3 bn.
Poland Investment Market

Colliers International: A total of €610 mln of income-producing investment transactions were closed in the Czech Republic. The office sector accounted for 61% of the total volume of the country’s investment transactions.
Czech investment volumes to top 2012 total

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TOTAL RETURNS

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IPD: The IPD Central and Eastern European Annual Property Index delivered a positive total return on all property of 5.6% in 2012, albeit 2% lower than the total return for 2011. In common with other European countries, income return was the key component of performance, returning 6.8% although somewhat below its long-term trend of 7.0%, while capital growth stood at -1.1% for 2012.
CEE region posts 5.6% return in 2012: IPD