Central European property volumes speed up in Q3

Real estate investment activity in the core Central European markets accelerated significantly in Q3 with some €1.5 bn invested, compared with €630 mln in the previous quarter, according to Cushman & Wakefield.

Some €3.2 bn has been invested across Poland, the Czech Republic, Slovakia, Hungary and Romania in the first nine months of the year compared to €1.9 bn in the same period in 2012

Transaction numbers and average lot sizes have also increased over the period, with 78 transactions completed in 2013 compared with just 49 for the same period last year.

Commenting on the level of activity during Q1 - Q3 2013, James Chapman, partner at Cushman & Wakefield added: 'Investment volumes are running some 24% ahead of the five-year average, evidence of the markets’ positive mood, particularly for Poland and more recently the Czech Republic. Slovakia and Romania are also seeing the first signs of increased activity, however, it is Poland with its scale and resilient recent performance that stands out as a top 10 destination for capital in Europe.'

Investment activity in Poland doubled in Q3, reaching €943 mln, compared with €454 mln for the previous quarter. The Czech Republic experienced a rebound, largely due to Starwood’s acquisition of The Park which pushed the volume invested in Q3 to €344 mln, ahead of the €80 mln and €245 mln invested in Q2 and Q1 respectively. Slovakia attracted some €90 mln in Q3, broadly in line with activity during the previous quarter.