New European hotel transaction data from Cushman & Wakefield reveals that the first half of 2020 saw a marked increase in investors retreating to their home regions amid COVID-19 related uncertainty, with 78% of the recorded €5.7 billion in transactions (a year-on-year fall of 55%) originating from within Europe.

In mid-March, when COVID-19 challenged every aspect of ‘normal’, the European higher education and student housing industries entered an unpredictable time with regards to knowing how best to secure positive learning and living experiences. Given the nearly daily changes accompanying the situation, many higher education institutions and student housing operators chose to follow an active co-learning path, flexible scenario-planning and making bold decisions when necessary. During the summer, Bonard and The Class of 2020 launched a joint research project with the aim to provide as accurate and up-to-date information as possible to assist industry leaders in making further strategic decisions to create more sustainable knowledge ecosystems for global talent amidst the pandemic.

Warimpex achieved a positive operating result (EBITDA) in the first half of 2020 despite losses in the hotel segment due to the coronavirus. This can be attributed primarily to the earnings contribution from the rental of office properties – this segment saw a 15% increase in revenues compared with the prior-year period. Following the posting of property impairments and currency losses, this led to a loss of €21.7 million for the first half of 2020, including a result of minus €3.0 million for the second quarter of 2020.

The market for flexible office space has been experiencing dynamic growth for several years. The COVID-19 pandemic has changed a lot of things about our daily lives, also in the office sector, and thus has significantly affected tenant preferences. Many tenants have made or are considering a decision to move some of their branches or even headquarters to flexible spaces. The main reasons for the growing interest in flex spaces include the possibility of enlarging or reducing the space, no long-term commitments, and no need for investment outlays, according to an analysis by experts from Mindspace, a global operator of flexible workspaces.

Immofinanz started the 2020 financial year with strong operational performance, but the development of business in the second quarter was negatively influenced by the COVID-19 pandemic. Rental income rose by 10.4% to €145.5 million due to the expansion of the portfolio through acquisitions and completions, but a crisis-related increase in receivables write-offs led to substantially higher property expenses.

CC Trust Group AG, a family office owned by the Swiss serial entrepreneur Claudio Cisullo, and Romanian property developer One United Properties, owned by local entrepreneurs Victor Căpitanu and Andrei Diaconescu, have launched a global private equity firm in Switzerland.

Trei Real Estate GmbH increased its development volume to €960 million euros during H1 2020. This implies an increase by €60 million euros since year-end 2019 (€900 million). Compared to the prior-year figure (H1 2019: €730 million), the growth actually amounted to €230 million, which equals an increase by 31 percent year on year. A breakdown of the €960 million by type of use shows €175 million in the retail segment and €785 million in the residential segment.

CA Immo presented a solid operating result for the first half of the year, hardly affected by the COVID-19 pandemic. Continuous portfolio growth and the continuing high occupancy rate of the property portfolio brought a further increase in net result from rent (+10.2% on the previous year). Although the negative revaluation result reflects the current state of economic emergency, its impact on consolidated net income was significantly mitigated by other positive earnings contributions. CA Immo continued its portfolio growth in the first half of the year with the addition of two fully let Berlin office buildings (including one project completion and one portfolio acquisition) to the investment portfolio.

The coronavirus crisis has led to a significant shift in the investment strategies of institutional real estate investors. “Lower risk, lower return” is the mantra of the moment. 58% of the 150 professional investors in Germany, France and the UK surveyed by Union Investment for its investment climate study are currently pursuing such a strategy. The figure was just 35% prior to the outbreak of the pandemic. The shift is especially pronounced in the UK, where security is the main investment motive for 79% of those surveyed. Before the pandemic, it was 50%. Nonetheless, there is no general reluctance to invest. Only five% of the European investors in the survey intend to avoid all investment in real estate in the current phase.

The first half of this year saw an absolute record-breaking result in the history of the Polish investment market in the warehouse segment. For the office sector, it was the second-best six months in history in terms of transaction value. Despite the turmoil caused by COVID-19, total transaction volume in the commercial real estate sector in Poland in the first half of this year was even higher than the excellent result from the same period in 2019, according to Walter Herz.