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.



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New leases

  • Premium office operator Hotspot has expanded its flexible workspace footprint within Bucharest's The Mark building by approximately 700 sqm to meet rising corporate demand. The expansion brings the total area of private office and coworking spaces at the Hotspot Workhub sites to approximately 2,552 sqm.
  • Stook Concept has leased a 3,600 sqm module within building C2 at the MLP Bucharest West logistics centre. The facility comprises approximately 3,500 sqm of warehouse space and 100 sqm of offices. The building is in its final construction phase, with handover scheduled for later this quarter. Colliers represented the tenant in the transaction.
  • DXC Technology has extended its lease agreement for office space in Warsaw’s Skyliner tower, securing its tenancy until 2032. The global IT services leader will continue to occupy nearly 4,600 sqm of office space distributed across three floors of the Karimpol Group’s flagship development.

New appointments

  • BNP Paribas Real Estate Poland has expanded its Industrial and Logistics Agency team with the appointments of Joanna Choromańska, formerly of JLL, and Bartosz Wilczyński, previously with CBRE. The new hires bring a combined 34 years of experience in sector sales, lease negotiations, and build-to-suit project delivery to support the division's ongoing growth.
  • Speedwell has expanded its industrial and logistics team with the appointment of Valentin Achim as Leasing and Property Manager for Industrial Developments. Achim brings extensive experience in coordinating commercial and operational activities within the logistics and industrial sectors. In his new role, he will oversee the development and expansion of the company's Spaceplus platform.
  • Colliers has appointed Kata Mazsaroff, Tamás Beck, and Miklós Ecsődi as Equity Partners in Hungary, effective 30 April 2026. Mazsaroff, who joined in 2007, rises to Managing Partner after overseeing a 200 per cent revenue increase since her 2022 appointment as Managing Director. Beck, with Colliers since 1994, has led the Industrial & Logistics division since 2005, facilitating transactions covering 1.9 million sqm of built space and 9.8 million sqm of land. Ecsődi, Head of Occupier Services and Office Agency since joining in 2011, has secured over 450,000 sqm in leases valued above €600 million.


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