ARTICLES LABELLED WITH TAG report

Economic sentiment indicators are still pointing towards further expansion in CEE-6 investment volumes in 2018, over and above 2017’s cycle high of €12.9 billion. The current economic and real estate investment cycle might top out in 2019. Colliers International has published its investment outlook for the CEE-6 real estate markets for 2018.

The fourth quarter of 2017 was very strong for the office market in Prague. Demand significantly increased and annual gross demand reached a new record. Five new office buildings were completed and the vacancy rate decreased to 7.5 %, while prime headline rents grew, JLL reports.

The supply of new Class A office space delivered in Bucharest in 2017 was absorbed almost entirely by demand, as per a report by CBRE regarding the office market in 2017, which also says 90% of the office space area completed in 2017 has already been leased.

The Polish warehouse market remains in great shape. New year-to-year records are being broken. Gross demand amounted to 4 million sqm, of which 75% was made up of new lease agreements and expansions. This is a 32% improvement compared to 2016. High demand side results are due to the accelerating economy, including internal consumption growing month by month, and an increase in investment by companies. Developers responded quickly to high demand from tenants, resulting in 2.36 million sqm delivered on the market and 1.39 million sqm under construction at the end of 2017. The high level of absorption caused the vacancy rate decrease to 4.5%, according to the report summarising 2017 in the warehouse space market in Poland, prepared by AXI IMMO experts.

Each new office leasing contract signed in Bucharest last year created at least 130 new jobs. Dimitrie Pompeiu and South sub-markets made the top, with more than 200 new jobs per transaction, according to the latest JLL market report.

In 2017 the residential market took the lead in terms of land deals, recording all-time highs for both the number and value of sale/purchase contracts. The market for land suitable for office buildings and hotels also continued apace in 2017. The appetite of developers for new purchases was underlined by deals for several dozen properties throughout Poland, according to JLL.

Recent changes in Sunday trading laws and commercial property tax regulations have not discouraged investors, both the existing well-established players as well as new entrants to the market. Similarly to the previous year, the portfolio transactions in 2018 are expected to account for a significant share in the total investment volume. Jędrzej Suchowolec, Senior Advisor at Cresa Poland, commented on current investors’ interest in retail properties.

In 2017, the Polish industrial market continued to develop at a high level. The intense activity among developers, who delivered over 2.3 million sqm to the market, and among tenants who leased nearly 4.6 million sqm, led to another record for both sides – according to the latest report by Colliers International.

Poland remains an attractive destination for investments and this is reflected in the impressive results on the office markets both in Warsaw and regional cities. With ambitious plans, investors are looking to the future with optimism. JLL summarized the situation on the Polish office market in 2017.

In 2017, real estate transactions hit a record-breaking volume of € 5 billion, up by nearly 10% on the previous year. Bank financing for properties remained unchanged, averaging approximately 60% of each property’s value. Cushman & Wakefield has published its opinion on the commercial property lending market in Poland, written by Mira Kantor-Pikus, Partner, Equity, Debt & Structured Finance, Capital Markets at Cushman & Wakefield Poland.