Despite many negative factors, Q4 2022 showed that the economy in Slovakia should grow by 1.8% in 2022. Energy prices were stabilized, inflation peaked and we could see the increase in yields. The Slovak industrial sector remained once more the most resilient real estate segment and experienced very solid performance in 2022. In the same period, the lack of new supply resulted in lowered vacancies in offices. Overall retail park projects dominate both this year’s new supply and future retail development with limited space for larger retail schemes due to high saturation. Cushman & Wakefield published its market reports for Q4 2022.

The number of property deals and the volumes transacted plunged in Q4 2022 in comparison to the final quarter of 2021 in major EMEA markets due to higher interest rates and financing costs amid surging inflation. However, property investment will resume its growth path this year, as the inflation and interest rates become more stable, says Colliers.

According to Michael Klien from WIFO (the Austrian Euroconstruct member institute), 2022 was the second year of recovery for the European construction industry after the outbreak of the pandemic. The year-on-year growth rates of 3% were, however, much lower than in 2021 (+5.8%) owing to the sharp rise in construction costs, Euroconstruct reports in its latest press release.

Real estate investment volumes in CEE reached almost €10.7 billion during 2022, up 6.6% compared to the previous year, with Poland accounting for 54% of all transactions, trailed by the Czech Republic and Romania with shares of 14% and 12%, respectively, according to a report by Cushman & Wakefield Echinox. 

In 2022, a total of 333,210 sqm of new industrial/logistics space was added to the Greater Budapest stock, the Budapest Research Forum reports.

Saying goodbye to 2022 means welcoming a year of uncertainty for the fourth time in a row. Two pandemic years, war in Ukraine, historically high inflation and the upcoming spectre of recession have forced the Polish investment market to cope with tough times, says Avison Young Poland

In their global real estate outlook for 2023, the Savills World Research team says that capital value increases in most real estate sectors around the world in 2023 will be minimal, and rental growth prospects limited, but investment activity may rebound in H2 2023.

The Polish Ministry of Development and Technology has drafted a bill to limit purchases of large numbers of flats. The new legislation is to target both individual investors and funds investing in the institutional rental segment (PRS).

New technical regulations regarding the methodology for calculating the energy performance of buildings will be enforced in Romania starting February. The new rules will help the local construction market will take an important step forward by aligning with European standards and trends in terms of sustainability

A key challenge facing many real estate corporates, who historically have been reliant on the bond markets, is the quantum of near-term maturities. This includes the Nordics where JLL estimates circa 32% of real estate corporate bonds are due to mature within the next 2 years.