According to JLL, almost €900 million were invested into Romanian property in 2016, 35% more than in the previous year. 2016 has been a record breaking year at a country level all over CEE with the highest ever volumes recorded in the Czech Republic and Slovakia and second best ever results recorded in Poland, Hungary and the SEE region.
Nearly 100,000 sqm of new office space was delivered to the Budapest market in 2016, the highest figure since 2010. Meanwhile, demand picked up in the last quarter of the year with a large share of the total leasing volume made up of pre-leases and new transactions. At the same time, the office vacancy rate has returned to its downward trajectory, reaching 9.5%, the lowest rate on record.
In Q4 2016 total leasing activity amounted to 133,460 sqm on the Budapest industrial market which marks a 64% rise on a yearly basis. Meanwhile, the vacancy rate reached a new post-crisis low at 8.1% and there is currently no scheme offering more than 10,000 sqm available adjacent space. The Budapest Research Forum published its quarterly industrial market analysis.
In 2016, new supply totalled 497,000 sqm on the Czech industrial market and at the end of the year a further 426,600 sqm of storage and industrial space was under construction. Prime headline rents achieved in the Czech Republic remained stable during Q4 2016 and currently stand at €4.25 sqm/month. The Industrial Research Forum has published its preliminary industrial market figures for Q2 2016.
International real estate advisor Savills has reported that investors into Europe’s retail sector are shifting their interest to some of the continent’s non-core markets. Investment into Europe’s retail sector during Q1-Q3 2016 reached €33.3 billion across the 15 markets that Savills covers, down 28% from the 2015 record volume. However, despite the overall drop of total turnover in the two largest markets of the UK (-18%) and Germany (-46%) during this time period, Europe’s non-core markets in contrast have experienced a significant rise in retail investment. These include: Ireland (223% to €1.46 billion); Poland (126% to €1.4 billion) and Italy (119% to €1.8 billion).
2016 saw the highest developer activity in the history of the Polish office market. New supply is expected to remain strong in 2017 with 1.4 million sqm of new space currently under development. JLL published its preliminary summary of Poland's office market performance in 2016
According to JLL’s review of last year, the Czech industrial market has exceeded the 6 million sqm mark in 2016 which makes it – along with the Polish one – one of the most advanced markets in CEE. 2016 gross-take up on the Czech industrial market totalled 1.2 million sqm which makes it one of the best years on record after the similarly successful years such of 2014 and 2015. Due to strong constant demand, the national average vacancy rate declined to 4%, which is the decade´s low and one of the lowest indicators in the market history.
According to JLL’s preliminary forecasts, the total volume of real estate deals on the Polish investment market in 2016 may amount to almost €4.4 billion. The real standout performer was the retail market which came in with nearly €2 billion, followed by the office segment with €1.7 billion and the industrial/logistics sector with nearly €0.5 billion.
Hotel capacities in Hungary will grow by approximately 2,000 rooms over the next two years, which corresponds to 4,000 new hotel beds, so Hungary and in particular Budapest will be prepared to meet the tourism challenges of coming years, according to KPMG's latest analysis.
During Q4 2016 the total commercial real estate investment transaction volume reached some €270 million in Hungary, pushing the 2016 volume to above €1.7 billion, the highest annual figure since 2007– according to JLL Hungary’s latest preliminary statistics. According to JLL Hungary’s preliminary statistics office transactions generated roughly 48% of the annual investment volumes, followed by retail (27%) and logistics (14%). Hungarian investors generated the highest share of the annual volumes (30%) followed by US-based (20%) and German (14%) investors.
Warsaw's Renova shopping mall, located in Targówek and owned by Napollo, has just opened the first outlet of the Mother Earth brand in Warsaw. The outlet will be located on the ground floor of the mall.
Gdańsk's Galeria Zaspa has gained a new tenant. Clothing brand Sinsay has taken nearly 600 sqm of space in the facility.
MediaExpert has joined the ranks of tenants in the shopping centre in Bełchatów - Galeria Bawełnianka. The electro market will occupy an area of over 600 sqm.
Oscar Kazanelson - the current Chairman of the Supervisory Board of ROBYG - has been appointed Chairman of the Supervisory Board of Vantage Development. This is related to the decision to build synergies within the TAG Immobilien Group.
Piotr Chemperek has joined the experts of the Office Space Department at Colliers Poland, taking the position of Associate Director. He will be responsible for advising companies in the medical sector.
Magda Twarowska joins Logicenters Poland, the logistics arm of NREP, as Head of Commercial. She will be responsible for managing tenant relations and leasing activities, covering the standing assets and projects held by NREP NSF IV portfolio company, BIK S.A.
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