NEPI Rockcastle, the biggest owner of shopping centres in CEE, recorded a net operating income (NOI) of €241 million in H1 2023, up by 23% compared to the same period of last year over strong rental growth and leasing activity, alongside improved cost recovery

In 2022, the value of transactions on the Polish commercial real estate market amounted to approximately € 5.8 billion, which showed that after the difficult years of the pandemic and the outbreak of conflict in the East, Poland turned out to be a stable market with a large group of investors interested in investing capital in our country and a wide range of attractive investment products. However, in the first half of 2023, we witnessed the previously expected investment slowdown. After six months of  2023, the total investment volume amounted to only around €800 million, which means a decrease of 70 per cent compared to the same period a year earlier, says Bartłomiej Zagrodnik, CEO of Walter Herz advisory agency.

Mitiska REIM has announced on behalf of the MEREP 3 fund the acquisition of a retail park in the Slovakian city of Skalica and the development of a new retail park in Sládkovičovo. In a new joint venture partnership with OPC Group, Mitiska REIM plans to expand its retail park portfolio in Slovakia in the coming years. 

Equity strong private investors have become active due to the most attractive yields seen in years, although the overall investment volumes have continued to fall in Q2 2023, while hotels remain a strong asset, according to a report of Arnold Investments. 

European Logistics Investment (ELI) has acquired land in Knurów, Silesia, as part of its expansion strategy in Poland.

The volume of investment in the regional real estate market during H1 2023 was one of the lowest in Central & Eastern Europe. Poland accounted for most of the regional transaction volume at 42%, followed by the Czech Republic with 34%. Total transactions in the Czech Republic in H1 amounted to approximately €692 million, a 42% year-on-year decline and a 9% decrease compared to the same period in 2021. The retail sector saw growing demand, accounting for approximately 61% of transactions. In Q2 of this year, the volume of transactions in the Czech Republic reached €298 million, down 27% compared to the previous quarter, reports Colliers in the survey.

The yield shift began in Hungary with a bit of a delay compared to the regional countries, where repricing has already become evident. Office maintains its dominance but investors have started to see retail assets as more attractive than before, says Attila Balogh, Head of Capital Markets at Hungarian property advisor firm Eston International.

In H1 2023, the total transaction volume in the CEE region decreased by 59% year-on-year. The current results in the property investment market may not appear very optimistic at the moment, but this is only a temporary situation, Avison Young reports.

iO Partners, JLL preferred partner in Romania, Czech Republic, Hungary and Slovakia, has appointed Andrei Văcaru as Regional Head of Capital Markets for CEE. He has been working for the agency in Romania for the past 16 years.

Daniela Lazea, Partner at Biriș Goran, spoke to Property Forum about Romania's advantageous position as an investment destination in the real estate sector and the growing demand seen by the law firm from clients active in the renewable energy sector. Biriș Goran’s portfolio remains consistent on residential, office and logistics projects.