According to JLL, the value of real estate investment transactions in Central and Eastern Europe totalled more than €5.47 billion in H1 2019.
Poland is the clear front-runner accounting for €2.72 billion, followed by the Czech Republic with €1.68 billion. In both countries Asian investors, particularly those from South Korea, have been remarkably active.
Total volumes in Hungary amounted to €400 million, while in Romania and Slovakia total volumes hit €338 million and €350 million respectively.
In a very positive scenario CEE real estate investment volumes may even outperform the €13.23 billion level seen in 2018's record-breaking performance, according to advisor JLL.
Mike Atwell, Head of Capital Markets Czech Republic & CEE, JLL said: “Poland may be close to the excellent volumes registered in 2018, due to the extensive pipeline for H2. In the Czech Republic, investment appetite remains strong. However, the country's market is hampered by a limited supply of prime assets. The results recorded in H1 in Hungary and Romania may even triple by year-end, reflecting excellent performances, especially with regard to Romania.
The H1 2019 real estate investment volume of €2.72 billion represents the second-best volume ever achieved in Poland. Yields remained stable across all asset classes, with further compression expected by year-end, excluding retail. There were around 60 transactions concluded throughout H1 2019, with the office sector dominating the investment landscape both in terms of volume and the number of transactions.
The split across sectors was €1.67 billion for office, €430 million for retail, €374 million for industrial, €135 million for hotel, €47 million for residential, and others €60 million. Asian capital accounted for more than one third of acquisitions in terms of transaction volume, with the Polish office and industrial sectors attracting significant attention from far-eastern capital sources.
RPA Perspective Total retail investment volume stood at €728 million by the end of July 2019 with a number of significant transactions concluded including Atrium Felicity in Lublin and Atrium Koszalin acquired by ECE European Prime Shopping Centre Fund II from Atrium for €298 million; and four M1 centres in Bytom, Częstochowa, Radom and Poznań acquired by EPP from Chariot Top Group BV for €224 million, King Cross Jubilerska in Warsaw acquired by Atrium European Real Estate for €43 million as well as the recently opened Silesia Outlet in Gliwice acquired by NEINVER and Nuveen Real Estate for €31.5 million.
Agnieszka Kołat, Director, Retail Investment CEE, JLL, said: “In H1 2019, we observed lower investment volumes at €430 million when compared to the same period last year. It must be emphasised, however, that H1 2018 saw the completion of the record-breaking Chariot Portfolio transaction for approx. 1 billion EUR, which alone accounted for over 50% of last year's first half total.
“The majority of this year's retail investment transactions has been concluded during the last two months and investor activity is picking up. We hope that this trend will continue, and more sales and acquisitions of retail assets will take place in the second half of the year.”
