The investment transaction market in Romania reached €181 million in H1 2023, down by 43% compared to the same period of last year over rising financing costs. At the same time, the average price per property decreased from €24 million to €11 million, according to Cushman & Wakefield Echinox. 

Skanska has divested the first phase of its office complex H2Offices in Budapest, Hungary, to Erste Open-Ended Real Estate Investment Fund, represented by Erste Alapkezelő Zrt., for approximately €100 million. The transfer of the property is scheduled for the fourth quarter of 2023.

While international investors remain cautious, local players from CEE remain actively engaged, opportunistically monitoring the market, and taking advantage of reduced competition. Gábor Zeller, Senior Director, Capital Markets at iO Partners Hungary, talked to Property Forum about key investment trends and shared his market expectations for the rest of the year.

In September, Czech developer UDI Group started selling apartments in its first project overseas. The group not only handles the entire sales transaction for the apartments but also the follow-up servicing or leasing. Construction of the 15-storey condominium in the financial district of Panama City's capital is expected to be completed in 2026. 

Total demand for office space on regional markets in the first half of the year was similar to last year’s level, but there were more vacant offices in all major markets, except Warsaw. Warsaw recorded a 30 percent decrease in demand for offices, and yet the vacancy rate decreased. Only a few office projects are being implemented across Poland, says Walter Herz. 

7R has finalised the sale of 7R City Flex Gdańsk II. The new owner of the warehouse is GLP Europe. The facility comprises 11,000 sqm of space – currently fully leased by leading brands from the food and FMCG sectors. The price has not been disclosed.

The construction of the Pod Hády quarter in the Maloměřice and Obřany districts of Brno has officially started. Real estate group Trikaya began preparing the large-scale project on the brownfield site of the dilapidated Ergon factory. According to the development company, the total investment in the project will exceed CZK 4 billion (€163 million). The first residents will be able to move in in 2025.

Cushman & Wakefield has appointed Tomáš Némethy MRICS as a Managing Partner and Head of Slovakia. This move underlines the firm's commitment to involving its esteemed presence in Slovakia and its ambition for further growth.

Demand for modern industrial space is still considerably high though European manufacturing companies are not taking home their production as quickly as earlier expected. Meanwhile, Asian firms in the automotive industry are increasingly seeking proper warehouses and logistics service providers. Property Forum asked Máté Szoboszlay, Director of Capital Deployment at Prologis Hungary about the change in e-commerce-related demand and the special needs of Asian tenants.

In 2023, Cordia International sold its 10,000th apartment, a result of nearly two decades of operation. The Hungarian property developer is now planning a major new urban regeneration project in Budapest.