Record-setting commercial activity in Central Europe 

Nery Alaev writes about the investment environment in central Europe.

Cushman & Wakefield, a global real estate consultant, has released data that points towards core Central European markets (Poland, Czech Rep, Slovakia, Hungary, etc.) experiencing record-setting levels of investment.

Poland led the way, reinforcing my previous article about the country’s fortunes in real estate.

I’ve decided to look at the news about the wider region and learn more.

Strong quarter

The fourth financial quarter of 2015 saw €3.16 billion invested, higher than previous records set nearly a decade earlier (2006). Overall, €7.37 billion was invested in Central European markets in 2015.

Prague, Czech Republic

Commenting on the levels of activity, James Chapman of Cushman & Wakefield comments:

„Of the five core markets in CE, it was Polish real estate that captured the majority of all investment capital in Q4. 

The record breaking €2.44 billion worth of deals transacted in Poland represented more than three-quarters of all CE investments in Q4.“

Mr. Chapman’s comments indicate that Poland is growing in strength on the investment front. Behind Poland is the Czech Republic, which as country saw €1.90 bn invested during 2015.

Property boom

As for property investment specifically, all property sectors (including offices, retail space, etc.) saw an increase in performance.

James Chapman comments:

„The €1.7 billion worth of retail assets traded in Q4 set a new performance benchmark in the sector. 

Volumes in all sectors were ahead of Q3 with significant growth in the retail sector making it the most sought-after asset class followed by office and industrial investments.“

The comment indicates that there is growth in the retail sector across Central Europe, implying that the demand for consumer spending-led growth is on the rise in the region.

Nery Alaev

Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.