Investment market momentum is still firmly positive across Central and Eastern Europe but an increasing share of market players feel that commercial property has become expensive in the countries surveyed by the RICS Commercial Property Monitor. Although the majority of the survey’s contributors believe that the market is in the peak phase of the property cycle, growth is set to continue in the coming year.

Money from East Asia burst on to the CEE scene in 2016-17, mainly via large industrial sector portfolio deals. The industrial sector received the majority of 2018’s flow as well, though diversification via larger single asset deals is beginning to occur. Asian investors appear to need liquidity: looking by CEE-6 destination, Poland presently dominates.

Real estate transaction volumes in 2018 were the strongest on record reaching US$1.75 trillion; a 4% year-on-year (y/y) growth and surpassing previous highs of US$1.68 trillion in 2017, according to new data from global real estate services firm Cushman & Wakefield.

Piotr Krawczyński joined the BNP Paribas Real Estate Poland team as Head of Capital Markets CEE. He will be responsible, among others, for acquiring new accounts and coordinating sale/purchase transactions in Central and Eastern Europe. His duties will include advisory in the field of financing real estate investment projects.

M7 Real Estate has completed €75 million of disposals across Central Europe in 2018 on behalf of both in house funds and third party mandates. M7 maintained Assets Under Management in Croatia, the Czech Republic, Hungary, Slovakia and Poland at €285 million, with a portfolio comprising 375,000 sqm of multi-let office and industrial space. In addition, M7 completed circa 50 leasing events, including new leases and lease re-gears.

It’s no surprise that expansion of the European logistics real estate market continued in 2018, with another strong year for occupier demand, lowest vacancy rates and long anticipated rent growth began to materialize. At the start of 2019 concerns increased around capital market volatility and potential impact to global GDP due to US-China trade tensions and Brexit. Even though the logistics real estate market ended 2018 on a strong note, some increased concerns at the start of the year raise the inevitable question: what can we expect in 2019? Prologis looked at the top trends influencing the market this year.

JLL has appointed Tomasz Trzósło as Managing Director of the CEE Markets. He will oversee the company’s operations across Czech Republic, Hungary, Romania and Slovakia, alongside his existing responsibilities as country manager for JLL’s business in Poland.

Europe’s commercial property market is enjoying a favourable operating environment supporting its credit quality but risks are increasing. Rising interest rates and slowing economic growth could dampen future investor demand, according to Moody’s latest report.

Colliers International sees the most important macro indicator for CEE in 2019, Eurozone interest rates, flat-lining at zero. This should stem some of the potential angst over tightening credit conditions, keep liquidity high, buyers interested and help pricing to plateau. Colliers International foresees selective compression in capital city prime office yields and still like the logistics sector. Absent a Eurozone financial crisis, funding from lenders should remain a support. Colliers International published its latest CEE report.

According to JLL, CEE's real estate investment transactional volume for 2018 was in excess of €13.23 billion and recorded an 11% increase over 2017 (€11.92 billion). JLL has registered continued appetite from investors for the full range of assets across the entire region. Poland smashed its previous record volume set in 2006 (€5.05 billion) with a spectacular €7.2 billion traded, and secured a massive regional share of 54%. Poland was followed by the Czech Republic (€2.51 billion - 19% share), Hungary (€1.85 billion - 14%), Romania (€900 million - 7%) and Slovakia (€820 million - 6%).