Property markets in CEE have solid building blocks and the region can attract more investment across the commercial sector, with industrial and private student housing standing out, concluded speakers at the CEE Investment Update London 2023 event last week, organised by Property Forum and RICS.

According to Workthere.pl’s latest Flexmark report, larger companies (101+ people) and scale-ups (21-100 people) now account for 54% of global flexible office members, compared with 42% of members last year. The flexible office specialist notes that this increase is also reflected in take-up levels with these larger companies accounting for 34% of global take-up in flexible offices, compared to 22% in 2022 and just 13% in 2020.

In Q3 2023, the Prague office market grew by more than 60,000 sqm of modern offices. This was the best result since mid-2020. No further similar peak is expected in the next three years at least, as no new construction has started for more than a year. Although investors are placing increasing emphasis on the sustainability of buildings, benchmark rental prices are not changing fundamentally, while landlords are trying to attract more generous allowances or longer lease holidays, Colliers reports.

In this year's 33rd edition of the Cushman & Wakefield Main Streets Across the World ranking, the Czech Republic ranked 19th. The survey compares nearly 50 countries around the world by the level of retail rents on the most expensive shopping street in each country, and for the second time the Czech Republic is represented by Paris Street. It ranks 19th among the world's most expensive shopping streets, 11th in Europe and first in the CEE region. The highest rent achieved in Pařížská, as of the third quarter of this year, is €2,700 per sqm per annum, i.e. approximately €225 per sqm per month. 

In the third quarter of 2023, the European Union investment market exhibited restrained performance, registering a transaction volume of €23 billion which, in turn, represents a noteworthy year-on-year decline of 57%. The cumulative transaction volume for the initial three quarters of 2023 amounted to approximately €80.4 billion, with domestic investors accounting for 53% of these transactions. Markus Arnold, the CEO and sole proprietor of Arnold Investments, observes "a sustained trend where equity-strong private investors continue to be highly active". The leading asset class on the European investment market remained offices with a transaction volume of €24.3 billion, comprising 30% of the total, followed by residential properties (€16.5 billion; 21%) and retail properties (€14 billion; 17%).

Many industry discussions have long chalked up the retail market as an industry in deep recession, with very bleak prospects. According to the participants of the retail panel at the Future of Real Estate 2023 conference in Warsaw in November, the retail industry in Poland is not only not dying, but is regaining vigour and investor interest. The event was co-organized by Property Forum and RICS.

As elsewhere, the investment market in Poland is struggling with high interest rates and financing costs. Some asset classes though, such as flats for rent and warehouses, remain a desirable commodity among investors - this is how the panel discussion focusing on investment and financing trends at Future of Real Estate 2023 can be summarised. The event was organised by Property Forum and RICS in Warsaw this week.

To address climate change-related challenges and help investors and occupiers comply with relevant regulations or government targets, as well as meet their own ESG commitments, CBRE's Southeastern Europe (SEE) office is expanding its services with the launch of a new business line, 'ESG & Sustainability Services'.

Real estate investor and developer GTC has recorded a like-for-like rental revenue growth of 6% in the first nine months of 2023 compared to the same period of last year. At the same time, the gross margin from rental activity slightly rose to €92 million.

Property Forum is proud to announce the first edition of its annual listing of the 50 most influential people in the Polish real estate market. To access the publication, fill out the pop-up window that appears on this page.