According to an article published in World Property Journal, Central and Eastern Europe (C&EE) has seen record levels of investment in commercial real estate.
Today, I’m looking further into this alongside further reports about investment growth in the region.
According to research carried out by Jones Lang LaSalle, the C&EE region saw €2.8 billion of transactions recorded in the third quarter of 2015. The figure brings year-to-date regional investment up to €5.5 billion, representing year-on-year growth of 22%.
JLL’s Head of Research for the region, Kevin Turpin, 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.”
Taking individual cities into consideration, it’s clear that Czech dominance in regards to investment remains.
Research from Cushman & Wakefield, reported by Property Magazine International, points to Prague as a rising star in regards to investment volumes – the Czech capital has recently overtaken Polish capital Warsaw in Cushman & Wakefield’s annual ‘Winning in Growth Cities’ survey. The survey lists the most successful cities across the world for attracting capital.
As investment in Central Europe grows, it is wise to begin observing the changes taking place at the heart of the continent.
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.