Whilst 2017’s volumes from South Africa are not likely to match 2016’s records, the numbers from Asia could well match or exceed last year’s, given the large number of potential sources that capital can hail from in that vast, deep and liquid arena. Asian investors see CEE as a risky higher return diversification opportunity compared to Western Europe according to the report released at MIPIM from Colliers International.

Buildings account for over 40% of energy consumption in Europe, of which   around 75% are not energy efficient. This illustrates the importance of obtaining sustainable development certificates for both newly-developed and existing buildings. Their energy efficiency is assessed based on modeling and energy simulations. However, so far, there has not been any analysis regarding the actual energy consumption of a building: what is the impact of the implementation of innovative systems, appropriate management, specifications and the expected level of the users’ comfort on the building energy performance? These issues have been thoroughly addressed in the first study in Europe, conducted by Skanska, Go4Energy and Cushman & Wakefield, which analyses office buildings in Poland.

The investment volume achieved in 2016 totalled almost €1.2 billion with 46 transactions recorded in core CEE hotel investment markets. In comparison, 2015 reached just over €700 million with 45 transactions. Austria was the star performer with almost €800 million transacted, which made up 67% of the total investment volume. In other CEE markets volume was lower than in 2015 with a particular decline in Poland which more than halved in volume. The Czech Republic accounted for 18% of total CEE investment share; most of the investment took place in Prague which saw 7 transactions including the Hilton Old Town, Park Hotel and Chopin Hotel.

Even though all figures available as well as market sentiment point to further growth on the Hungarian commercial property market, its players still keep looking over their shoulders for potential threats to this growth. According to the speakers of the Portfolio - RICS Valuation and Investment 2017 conference, global politics and potentially rising interest rates pose the biggest threat for CEE. We report from Budapest. 

Colliers International announced that Luke Dawson has returned to Colliers International, effective immediately, in the role of Managing Director & Head of Capital Markets for Central & Eastern Europe (CEE).

The partners of Balmain Asset Management and Sharman Church Chartered Surveyors have signed an agreement to merge the advisory businesses of Balmain and Sharman Church. The combined entity will trade under the newly established name of BSC Real Estate Advisors. The firm will provide clients with a complete set of service lines across all commercial property sectors including offices, retail, investment, industrial and property management. Balmain Asset Management will continue to trade as a completely separate entity continuing its focus on Asset and Investment Management.

Warimpex announced the partial sale of its hotel portfolio to Thai investor U City Public Company Limited (U City). The transaction includes eight hotel participations – two of which are partially (50 per cent) owned by UBM Development AG (UBM) – which comprise approximately 50 percent of Warimpex's total real estate assets and which have a property value of approximately €180 million (excluding the stakes of UBM in that portfolio). 

The amount of industrial space leased in key Central and Eastern European markets in 2016 was the largest ever recorded, totalling 5.7 million sqm. This represents a 25% increase over the preceding two years when about 4.5 million sqm was leased. The strong take-up among tenants was linked with an extensive new development at 2.2 million sqm. The findings are based on the research conducted by Cushman & Wakefield, which has been monitoring the industrial property market in the Czech Republic, Poland, Hungary, Romania and Slovakia over an extended period.

Poland remains the powerhouse of Central and Eastern Europe attracting close to half the capital invested in the region over 2016 as activity grew 5% over the year to €5.2 billion. According to Cushman & Wakefield, with the uncertainty around upcoming elections in major European countries and the ongoing Brexit challenges, Poland and the CEE region will maintain their strong position as a focus for any pan-European investment strategy.

Occupier and investment sentiment continues to be positive across Central and Eastern Europe according to the RICS Commercial Property Monitor for Q4 2016. Hungary and the Czech Republic remain the most upbeat markets, with Bulgaria and Croatia also gaining momentum. In Romania the pace of growth seems to be slowing down, although sentiment and projections continue to be broadly positive.