The CEE region is on course for its strongest year since the economic downturn on the back of a near-record-breaking third quarter.
The CEE region is on course for its strongest year since the economic downturn on the back of a near-record-breaking third quarter.
Advisory firm JLL said the market had grown by 22% year-on-year since the start of 2015. The preliminary transaction volume for the third quarter passed the €2.8 bn mark, just short of the peak year of 2007. The regional investment volume for the year to date amounted to €5.5 bn.
Within the region the Czech Republic was the market leader, accounting for 43% of the total, followed by Poland on 28%, Romania with 11% and Hungary on 10%. The SEE countries also recorded improved activity with a 6% share.
Prime office yields in Prague and Warsaw are in the range of 5.75% to 6%. Retail yields for best in class products are at 5% to 5.25%, while truly prime warehouse asset yields are expected to fall between 6.5% and 6.75%.
Kevin Turpin, Head of Research CEE at JLL, said: ‘With the final quarter of the year often representing one of the busiest periods for our investment teams, and looking at the pipeline of deals that are in advanced stages, we predict that the CEE regional volume could reach the €8 billion mark by the year end. Should the latter happen, it would put 2015 at the highest level since the economic downturn and third highest in the past 12 years.’