Anna Duchnowska, Head of Asset Management Europe at Invesco Real Estate talked to Property Forum about investing in property in the times of pandemic, the new segmentation of the real estate market and likely changes in financing conditions.

According to JLL, the value of real estate investment transactions in Central and Eastern Europe totalled more than €9.7 billion in 2020. Poland with €5.6 billion continued its dominance among CEE countries, with the Czech Republic in second place with €1.5 billion (after excluding the Residomo deal of €1.3 billion). Total volumes in Hungary amounted to €1.25 billion, while in Romania and Slovakia total value hit €900 and €525 million respectively.

After the great year in 2019 and a very good start to 2020, the coronavirus pandemic has halted the expansion of Asian investment funds in Poland. However, analysts are convinced that it is just a temporary situation and a new transaction closed this month also suggests that the flow of Asian capital has not dried up.

Any investor who observes the real estate market right now is likely to start with warehouse assets. This trend has already been visible, but the consequences of the COVID-19 pandemic have accelerated it to an astonishing degree, says Robert Dobrzycki, Chief Executive Officer of Panattoni who talked to Property Forum about the driving forces behind the growth of the warehouse market.

Based on independent external appraisals, CA Immo expects a property valuation effect of approx. €205 million (€2.07 per share) for the fourth quarter. The increase in value will more than compensate for the valuation loss of €21.5 million (€0.22 per share) booked in the first three quarters of 2020.

2020 was a channelling year for investors and asset managers but also a chance to lay a new foundation for tenant relationships. Vladimír Bolek, Portfolio Management, Member of the Board at IAD Investments talked to Property Forum about the effects of the pandemic and shared his investment strategy for 2021.

CTP has announced a 15% annual growth which helped the company reach €344 million of annualised rental income by the end of 2020. With a portfolio of 6.3 million sqm and 740,000 sqm under construction at year-end 2020, CTP solidified its position as the largest logistics property owner and developer based on GLA in the Czech Republic, Romania and Serbia while announcing new developments in Austria, Poland and Bulgaria.

Realpad is a European provider of software that helps more than 60 residential developers provide better customer service. Recently, in cooperation with Slovak developer Corwin, Realpad completed a pilot project for the digitisation of the entire apartment handover process. The solution has been quickly adopted by more customers in other European markets.

Property investment volumes for the CEE region totalled €10.4 billion in 2020, 24% below 2019 levels. Poland, the Czech Republic and Hungary all saw year-over-year declines in volumes. Romania, Slovakia and Bulgaria all saw increases. By comparison, EMEA  volumes are estimated to be down by ca. 27% YoY but Colliers’ latest reports indicates a strong rebound in 2021. Investor appetite remains strong for 2021 for the CEE region but will continue to be challenged by available product and the varying impact of COVID on certain sectors.

In the wake of the COVID-19 pandemic, dealmakers are broadly positive about the prospects for M&A in Central, Eastern and South-Eastern Europe (CEE/SEE), according to a new survey from Wolf Theiss and Mergermarket. Just over half (52%) of respondents said that the health crisis will increase their appetite for deals in the next 12 months.