Real estate professionals surveyed by the RICS in Q2 2018 now believe that the Czech investment market has reached the peak of the current cycle while the Hungarian and Polish markets are also close to peaking. Nevertheless, market sentiment is still positive on both the occupier and investment market in all CEE countries monitored by the RICS Commercial Property Monitor, including Croatia and Romania.

Given the dynamic changes occurring within organizations and the evolving business environment, the old office models are no longer working. At the same time, the market, which has in recent years experienced a strong increase in supply on the one hand, and a significant transformation of the labour market, e.g. evolution of work styles, on the other one, is more and more willing to welcome new workplace strategies.

Globalworth released its interim report and unaudited consolidated financial results for H1 2018. The company continued to expand heavily in its core markets, Poland and Romania.

According to new data from JLL, by the end of H1 2018, total office stock in Wrocław exceeded one million sqm. In the first half of the year, tenants signed deals for more than 58,000 sqm while the market gained another 100,000 sqm of space.

In mid-2018, Wrocław’s office stock reached 1.01 million sqm, which represented a 16% increase on the same period last year, according to Cresa. Eight new office buildings providing a total of 104,000 sqm were delivered to the market between January and June 2018. The largest office completions included Echo Investment’s 24,900 sqm Sagittarius, which was delivered in Q2, followed BZ WBK’s 17,000 sqm office building and Echo Investment’s 13,900 sqm West Link.

About 10 years ago, Lehman Brothers’ bankruptcy would mark the peak of the global financial crisis and would be followed by a deep recession in several parts of the world, including Romania. However, Romania has come a long way in the last decade, with the economy seeing some radical transformations, as well as in real estate; the real estate consultancy company Colliers International Romania sees the next 10 years offering an attractive risk/reward profile.

The office stock in the major regional cities of Romania - Cluj-Napoca, Timisoara, Iasi and Brasov – has doubled over the past five years and will continue to grow at an accelerated pace, being expected to exceed the 1 million sqm threshold in 2019, according to the Cushman & Wakefield Echinox Office Market Regional Cities study.

1.16 million sqm of modern office stock, demand hitting 77,200 sqm and 300,000 sqm of space under construction – this is the current situation on the office market in Kraków at the end of H1 2018. The market has grown nearly fourfold in the last decade, according to JLL.

Despite the anticipated large wave of new office supply, the Łódź market is well-balanced. Rents hold firm and tenants continue to target office buildings in the city centre.

The first half of 2018 on the Polish shopping centres market belonged to the biggest agglomerations. Over 172,000 sqm of new space was delivered, which constitutes about 75% of domestic supply. At the same time, the demand for retail space was still very high and the level of vacant buildings remained very low.