The latest EBI Construction Activity Report has found that the stagnation of the total value of started construction works has not stopped. Between January and March 2021, construction works in the sector started on HUF 421 billion. This, although not greatly different from the values seen in the previous three quarters, is still the lowest Activity Start indicator of the last two years. Compared to the January-March periods of the previous two years, 2021 started clearly weaker: against the positive Q1 2020, the decline was about 35%, but even over the same period in 2019, there is a 15% decrease.

In its first financial results announcement since the IPO in March 2021, CTP recorded a 16.9% growth of net rental income in Q1 2021 vs Q1 2020, increasing its market share in its core CEE markets to 24% by the end of Q1 2021 and more than doubling leasing activity to 397,000 sqm GLA (compared to 184,000 sqm in Q1 2020).

In the first quarter of this year €1.25 billion was spent on commercial real estate in Poland. This reflects a decrease of only 1.5% compared to the five-year average for the first quarters of 2017-2021. Offices have the largest share in the investment market, but the industrial and logistics segment is also continuing its streak. Capital investment came to Poland mainly from Europe, according to the latest CBRE report. The company's experts indicate that there is moderate optimism on the investment market, which is reflected in the safe choices of investors.

Aggregate revenue reported by nearly 20 construction groups whose stock is listed on the Warsaw Stock Exchange grew by a nominal 4.3% in 2020, which is a scant rise in real terms, given continued increases in the prices of building materials and labour costs. However, the aggregate net profit posted by these companies improved clearly as it grew by almost PLN 0.5bn over the year. Notwithstanding that, net financial performance of the listed construction companies and profit margin figures they report still pale in comparison to results delivered by property developers and suppliers of building materials and construction equipment.

During the last six years, between 2015 and 2020, the Serbian construction industry rolled out into one of the strongest growth cycles in recent history. The powerful surge in construction outputs surpassed all initial expectations, and there are a number of converging factors behind its formidable result. The recovery after the recession gradually transformed itself into a fully-fledged construction boom, which more than doubled Serbia’s construction output, from €2 billion in 2015 to €4 billion in 2019. Even the pandemic in 2020 didn’t change the very positive outlook, although it did cause a slowdown and negative consolidation of construction outputs by some 5% at constant prices. The expected growth should return in 2021, however. The EECFA (Eastern European Construction Forecasting Association) has released its latest article about the Serbian construction industry, written by Dejan Krajinović, Beobuild Core D.O.O.

A total investment volume of €290 million was transacted in the Czech Republic during the first quarter of 2021, according to Savills’ latest research. Without the exceptional €1.3 billion Residomo portfolio sale transaction, the investment volume was only down by 8% y-o-y.

According to Colliers, CEE investment flows are down by almost 48% on Q1 2020, at ca. €2.0 billion. Despite the slow start, 2021 year-end volumes are estimated to accelerate to reach similar levels to 2020, of around €10.0 billion.

After a year from the beginning of the pandemic, investors are continuing their strategies adjusted to the new market conditions. Most of them are focusing mainly on safe, predictable investments. This year Avison Young has observed the third-best opening ever with almost €1.3 billion transacted in 31 deals during the first quarter of 2021.

The Q1 2021 results of the RICS Global Commercial Property Monitor indicate a slightly less negative market sentiment across Europe compared to the previous quarter. Rental growth expectations remain negative within the office and retail sectors across all European nations covered, while the outlook for industrial markets has never been more positive.

The volume of new real estate investments in Romania amounted to €98 million in the first quarter of 2021, driven by the office and industrial segments. The investments were down 19% compared to the same period of 2020, according to a report by CBRE.