Czech and Bulgarian markets drive CEE investment boom

31
Oct
2017
News - Czech and Bulgarian markets drive CEE investment boom #Bulgaria #CEE #Colliers #Czech Republic #Hungary #investment #Poland #report #SEE #Slovakia

by Import Sys | Report

Investment flows into the CEE-6 region’s commercial real estate markets rose 12% y-o-y in the first nine months of 2017. The €7.6 billion closed deal total coupled with a still full pipeline of deals under consideration suggests that the annual cycle high of €12.2 billion invested last year is likely to be matched or overhauled. Substantial growth in Czech and Bulgarian volumes were the drivers of the momentum in the January-September 2017 period, says Colliers International in its latest report.


Total investment volume in the CEE-6 countries reached €2.2 billion in Q3 2017. Substantial growth in Czech (+71% year-on-year) and Bulgarian (+158% y-o-y) volumes were the drivers of the momentum in the January-September 2017 period.

The Czech Republic remains the largest recipient so far this year, still ahead of its larger neighbour Poland.

Considering the sectors in CEE, retail and hotel investment volumes continue to rise by the most, whilst purchases in the industrial sector appear to be more concentrated at the portfolio level for now.

“Several of the newer sources of capital we have identified featured strongly in Q3 2017. A combined 29% of investment came from domestic sources within the CEE-6 countries or CEE cross-border flows: Czech and Hungarian money is prominent. South African funds made a comeback in the quarter, comprising 25% of the invested funds”, says Mark Robinson, CEE Research Specialist for Colliers.

Underlying the strong flow momentum is a robust demand growth story, with the economies of the CEE-6 region registering GDP growth rates of between 3.2%-5.9% year-on-year in Q2 2017. Evidence from more recent industrial production and retail sales numbers suggests that this growth momentum is extending into the second half of the year.



Latest news


New leases

  • The global fintech group - Capital.com - has extended its lease agreement for 3,000 sqm of office space in the Skyliner office building in Warsaw until 2032. Over the past 12 months, lease extension agreements for a total of nearly 12,000 sqm have been signed in the building.
  • REHAU, a global manufacturer of advanced polymer solutions, has signed a lease for approximately 4,100 sqm of space at MLP Business Park Poznań. The new facility will integrate warehouse operations with modern office space and a dedicated showroom for product presentations, corporate meetings, and technical training.
  • RecuNova has leased 305 sqm in the Bucharest-based Olympia Tower office building for a new medical clinic. The lease deal was brokered by Activ Property Services.

New appointments

  • Romanian office developer Genesis Property has appointed Cătălin Niculiță as Leasing Manager. With nearly 20 years of experience in the real estate industry, he has held leadership roles at real estate companies such as Atenor, collaborating with major office tenants in the banking, telecom, and IT sectors.
  • Krzysztof Wróblewski (MRICS) has been named Head of Portfolio Management CEE at Peakside Capital Advisors, responsible for overseeing investments and managing the real estate portfolio. He succeeds Christopher Smith in this role.
  • Garbe Industrial is reorganising its senior leadership team. CEO Christopher Garbe will now focus on strategic orientation and international activities. Jan Philipp Daun assumes leadership of the Development division alongside his existing Investment and Joint Venture responsibilities. Andrea Agrusow expands her remit to include Portfolio Management while retaining control of Commercial and Real Estate Management. Additionally, Michael Marcinek and Maik Zeranski will now jointly head the restructured Development unit as Management Board Members, succeeding Adrian Zellner.


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