Investment market momentum is still firmly positive across Central and Eastern Europe but an increasing share of market players feel that commercial property has become expensive in the countries surveyed by the RICS Commercial Property Monitor. Although the majority of the survey’s contributors believe that the market is in the peak phase of the property cycle, growth is set to continue in the coming year.

Money from East Asia burst on to the CEE scene in 2016-17, mainly via large industrial sector portfolio deals. The industrial sector received the majority of 2018’s flow as well, though diversification via larger single asset deals is beginning to occur. Asian investors appear to need liquidity: looking by CEE-6 destination, Poland presently dominates.

International architectural firm BIG founded unveiled its plans for Towarowa 22, a 230,000 sqm mixed-use development in Warsaw’s Wola district at MIPIM. The owners of the project are EPP and Echo Investment

There is a growing global war chest of capital for real estate, with institutional investors looking to increase their real estate allocations and new sources of capital emerging, according to Colliers International’s latest report. Increasing allocations to real estate from global institutions reached at least $840 billion in 2018, adding to the $370 billion in closed-end funds waiting to be deployed to real estate in 2019.

Real estate transaction volumes in 2018 were the strongest on record reaching US$1.75 trillion; a 4% year-on-year (y/y) growth and surpassing previous highs of US$1.68 trillion in 2017, according to new data from global real estate services firm Cushman & Wakefield.

The local real estate market has begun to attract the attention of major Asian investors, as groups from China and South Korea are exploring the potential to invest directly in the primary commercial markets. It is feasible that the first transaction could occur by the end of this year, according to Cushman & Wakefield Echinox consultants.

At the end of 2018, Poland’s industrial and warehouse stock reached 15.79 million sqm. Around 2.22 million sqm of modern warehouse and industrial space was delivered to the market last year, down by just 6% on 2017’s level. With 792,000 sqm constructed in the last 12 months, Central Poland reported a record-high development activity with large-scale completions for BSH, Media Expert and Smyk at Panattoni Central European Logistics Hub in Łódź (a total of 214,000 sqm), Hillwood BTS Zalando 1 in Głuchów (125,000 sqm) and Panattoni Park Stryków III (91,000 sqm). Other leading markets in terms of new supply were Upper Silesia (303,000 sqm), Wrocław (219,000) and Warsaw suburbs (205,000 sqm).

Piotr Krawczyński joined the BNP Paribas Real Estate Poland team as Head of Capital Markets CEE. He will be responsible, among others, for acquiring new accounts and coordinating sale/purchase transactions in Central and Eastern Europe. His duties will include advisory in the field of financing real estate investment projects.

Hungarian developer Wing has announced the launch of the Gizella Loft, a new office project at Siemensʼ Gizella út site acquired last year. The 8,500 sqm is set to offer modern, human-focused offices for potential tenants from the end of 2019.

At the end of 2018, Poznań’s total office stock amounted to 479,100 sqm. Six projects completed in the last twelve months delivered 21,200 sqm of new office space. The largest completions included buildings IV and V of the Pixel complex: 8,850 and 8,950 sqm, respectively. Office take-up hit 70,400 sqm, which represented a 10% y/y decrease. Key lease transactions comprised the 14,750 sqm renegotiation and expansion by Santander Bank Polska at Poznań Business Garden, a deal signed for 10,300 sqm at a Nowy Rynek building and Carlsberg’s 3,950 sqm renegotiation at Nowe Garbary. Cushman & Wakefield summarised the Poznań office market at year-end 2018.