Avison Young presented the results of the investment market in Poland for the first 5 months of 2023. The volume of closed transactions announced to the public from the beginning of this year to the end of May amounted to only around €800 million, while in 2021 and 2022 in the same period, its value amounted to over twice as much. There were no large transactions, which in the first quarter of 2022 accounted for 75% of the total volume. Many buyers are trying to take advantage of the market situation and are bidding well below property valuations, hoping to get a good deal, but owners are taking their time to sell. Avison Young experts - Paulina Brzeszkiewicz-Kuczyńska (Research and Data Manager) and Marcin Purgal (Senior Director, Investment) - expect that in the second half of this year, the commercial real estate market in Poland will be dominated by opportunistic and value-add assets in every sector.

On the occasion of Property Forum’s Living Investment Forum 2023 and under the umbrella of the RICS CEE residential working group, an online survey was conducted among large residential developers and management companies from Poland, the Czech Republic, Hungary and Romania with help from industry organisations and RICS professional network to get insight on what importance ESG considerations play in the residential sector in the CEE region. In the survey, 80% of respondents claimed that ESG is an important factor in their business decisions at the “strategy level”.

Bulgaria, with its growing economy and increasing consumer spending, has witnessed a recent surge in the construction of retail parks across the country. A total of 13 projects are under active construction and another 9 are at different stages of planning. The outlook for the retail park market in Bulgaria over the next year is positive, according to the latest report by Colliers.

Although anti-pandemic measures were still lingering on the Czech retail market at the beginning of last year, an early return to normal was expected. However, the war in Ukraine has fundamentally influenced further economic development, especially in the countries of Central Europe, including the Czech Republic. The rapid rise in prices (inflation increased by 15.1% year-on-year) and energy expenses were met by a further decline in already weakened customer confidence. How did this affect shopping centres in the Czech Republic? And what is the current sentiment on the market not only among customers but also the retailers themselves? CBRE tried to answer these questions in its annual Shopping Centre Index analysis, which is complemented by two current surveys focused on the development of customer behaviour and expectations on the part of retailers.

Modern office buildings are an important part of ESG strategies for many companies. However, the real estate market in the Czech Republic is not yet fully prepared for the new ESG-related requirements. Even construction projects planned over the next few years will not resolve this issue, since meeting strict standards and certification requirements is both procedurally and financially demanding, Colliers reports.

The opening panel of European ESG Property Forum 2023, which took place last week in Warsaw, has shown that the best stimulator to implement ESG strategies in the property market are always the financial and legal regulations.

Slight growth in logistics and retail space rents, despite no new mall expansion or openings being planned. These are the trends for the beginning of 2023, according to the latest report from Cushman & Wakefield Forton.

Immofinanz Group recorded strong growth in both rental income and operating results for the first quarter of 2023, which was supported primarily by the full consolidation of S Immo and by property acquisitions. Rental income rose by roughly 83% to €128.4 million. The results of operations and sustainable FFO 1 from the standing investment business more than doubled to €82.5 million and €72.5 million, respectively.

GTC’s adjusted EBITDA was €24 million in Q1 2023 (€26 million in Q1 2022), while net profit amounted to €12 million in Q1 2023 (€15 million in Q1 2022). The decrease mainly resulted from lower gross margin from operations and loss from revaluation, partially offset by lower finance costs and foreign exchange gain.

The investment volume in the first quarter of 2023 fully reflects the clear investor reluctance at the end of last year. According to a recent Arnold Investments market analysis, a real estate transaction volume of around €27 billion was recorded in the European Union. Compared to the same quarter in 2022, this is a decline of 60%.