There is still a mismatch between buyers and sellers on property deals in CEE, but the market will attract more investment due to high yields and growth potential in industrial, residential and office, concluded speakers of the 2024 Property Investment Outlook online event organised by Property Forum.
Csanád Csürös, CEO, Property Forum, pointed out that repricing of assets in CEE was much slower compared to more mature markets in Europe.
Average deals to the tune of €35-€40 million have the potential to be recorded in Warsaw and other capital cities in CEE, according to Adrian Karczewicz, Head of Divestments CEE, Skanska. There will be more opportunities for companies coming from B or C class office buildings in secondary locations, while for ESG-ready A class office buildings there will be huge demand and insufficient stock.
Hubert Manturzyk MRICS, General Manager CEE, Aareal Bank AG, said the biggest concern is the lack of larger transactions on the market. He explained this challenge is connected to the interest rates and the overall sentiment towards real estate.
The bank is aiming to have a bigger loan allocation in CEE, with logistics portfolios being the driver for investment, according to Manturzyk.
Marius Persenea, Chief Operating Officer, IULIUS Company, mentioned the high level of polarisation between buyers and sellers on pricing expectations for real estate projects.
He added that more Western Europe-based investors will be attracted to CEE due to the strong fundamentals of the region, with high yields being just one of the key points.
Karol Pilniewicz, CIO, Futureal, said the company is looking for investment opportunities in the residential and logistics sectors.
There are numerous opportunities, especially in the living sector ranging from residential to student or senior housing, according to Waldemar Wasiluk, VP/CFO, Victoria Dom. At present, demand is higher than supply in Poland’s residential market due to administrative burden and lack of land for development.
