Hungary’s property investment volume is expected to expand dynamically in 2021, since a significant amount of capital is looking for its place in the market. Offices with high levels of occupancy and logistics assets will be in the focus of investors. Hungarian advisory firm Eston, an official associate of Savills, has published its market reports for H2 2020.

Logistics developer and investor VGP announced a record net profit of €370.9 million for 2020 which is an 80.4% y-o-y increase. The company announced its financial results for 2020.

The industrial segment has stood out as the most resilient sector to the crisis and the markets Serbia, Croatia, Slovenia and Bulgaria present a huge opportunity for further growth. Boško Tomašević MRICS, Managing Director SEE at CBRE talked to Property Forum about investment market expectations and shared the company’s expansion plans for the Balkans region.

Accolade published its results for 2020. Last year saw the expansion of the portfolio area by 30%, almost 400 new qualified investors and a year-on-year return of 10,02%. The biggest industrial real estate fund in the Czech Republic now owns a total of 16 industrial parks in the Czech Republic, Poland, and Germany with an area of 936,304 sqm.1,200 investors benefit from the rental income which was increased by 35%, in 2020.

Trammell Crow Company (TCC), one of the largest real estate development companies in the U.S., announced the launch of logistics development capabilities in Europe.

Czech industrial developer Demaco obtained a planning permit for the construction of an industrial hall of 18,245 sqm of a built-up area in the DMC Kvasiny industrial park. This is the largest permitted hall ready for construction near the Škoda Auto plant in Kvasiny, where the successful Superb, Kodiaq and Karoq models are produced.

eMAG announces that in the summer of this year, an area of ​​100,000 sqm will be put into use from the industrial park from Joiţa, at km 19 of the A1 highway, which will have a total area of ​​130,000 sqm. All automation will be ready by September 2022, when the entire logistics center will be operational. The investment amounts to €90 million and was announced last year.

The local market for logistics and industrial spaces accelerated expansion in 2020 both in terms of demand, which approached the threshold of 1 million sqm, and in terms of deliveries of new spaces, which reached an area of ​​649,000 sqm, both indicators reaching new records, according to real estate consulting company Cushman & Wakefield Echinox.

Disruptions from the pandemic are poised to continue, according to the Prologis Logistics Rent Index. Lockdowns and other COVID-19-related situations may constrain customers’ operations, though the volatility is expected to be less severe than in 2020 as many customers now have better supply chain visibility.

There is currently a shortage of industrial and logistics space on the Czech market, in addition to a lack of land suitable for their construction. This is mainly due to growing demand and the fact that local governments aren’t motivated by tax benefits to allow their construction. The situation is most evident in the vicinity of large cities, and also affects the growth of rent levels. Moreover, it has also caused a new trend in the form of the extension of rent contracts. The first new projects of over 20,000 sqm can only be expected in the second half of 2022.