According to the latest analysis prepared by Cushman & Wakefield, investment volumes in a commercial real estate in Central and Eastern Europe reached nearly €13 billion in 2017. All CEE countries grew at a similar rate with Poland growing most rapidly at 9% y-o-y. Foreign investors from North America, Asia, and South Africa dominate the market, followed by German and Austrian buyers.
2017 was marked by two trends – limited product and high demand in the core segment and subdued appetite for secondary and tertiary assets. Commercial real estate investment activity in CEE reached €5 billion in Poland, €3.3 billion in the Czech Republic, €1.8 billion in Hungary, €1 billion in Romania, €876 million in Bulgaria and €470 million in Slovakia. The retail sector outperformed nearly €1.9 billion worth of investments, followed by approximately €1.4 billion in the office sector. The warehouse market accounted for almost €900 million, while approximately €850m was invested in both the hospitality and mixed-use sectors each. Hotels became a relevant investment product with investment volumes amounting to €862 million and this sector is set to attract increasing investor interest. In Bulgaria, demand growth remained firm in the office and retail sectors but eased slightly for industrial space.
2018 is expected to be another good year for the commercial real estate investment market with most active inflows from the US, Canada, South Africa. Q1 2018 is likely to exceed €3 billion.