The Czech market is expected to record a full-year investment volume of €775 million and €475 million for offices and logistics, respectively, signalling continued growth in both market segments. Savills experts Pavel Novák and Chris LaRue talked to Property Forum about the key trends driving the Czech office and logistics markets.
The Polish warehouse market is experiencing an unprecedented boom. In the first half of 2021, the take-up of logistics space in Poland exceeded 3 million square meters for the first time in history and was higher than in the United Kingdom, France or Spain.
According to Savills, investment in the European real estate market is forecast to exceed last year’s level by at least 15% and reach around €270 billion in 2021, with the living sectors and logistics markets likely to account for a significantly higher proportion of total investment than their historic averages. Preliminary estimates of the investment volume in Poland after the third quarter of this year show the absolute dominance of the logistics sector.
From August 2021, KGAL GmbH & Co. KG, a leading independent European investment and asset manager based in Germany, has appointed Savills as property manager for Prague’s DRN building. Savills also continues to provide asset management services for the building, which it has been providing since July 2020.
According to Savills, European multifamily is now firmly established as Europe’s second-biggest real estate sector. At €24.1 billion it captured 23% of the investment activity in H1 2021 across the 12 countries that the international real estate advisor monitors. This compares to a five-year average of 16%. Office investment was the highest, accounting for 28% of the total, at €29.3 billion.
According to Savills, the European logistics market is on track for another record year, as investment volumes and take-up activity are already in excess of five-year averages at the half-year point. Take up in Poland in H1 2021 exceeded 3,000,000 sqm the first time in history and was higher than France, UK and Spain.
According to Savills, the European retail sector is increasingly looking more attractive to opportunistic investors. In the UK, there was a rise in opportunistic interest in the sector in the last quarter, supported by significant yield correction. In Poland, secondary retail assets are being traded at double-digit yields.
According to Savills latest research using Pitchbook data, €13.2bn of venture capital (VC) was raised by European headquartered life science companies between 2014 and 2018, resulting in over 650,000 sqm of office and lab deals across selected European life science markets between 2016 and 2020. Biotechnology and nanotechnology industries are also developing rapidly in Poland.
ROCKWOOL is expanding its office space in the Nowy Rynek D building, developed by Skanska in Poznań. In 2020, a competence centre was established on an area of 6,000 sqm. Now, the company has decided to lease additional 900 sqm.
Primark has opened the doors of its fourth shop in Poland for the first time in Katowice's Silesia City Center. The store occupies more than 3,600 sqm of retail space.
Signify is relocating its existing headquarters in Lódź. The new office, located in the city centre in the Hi Piotrkowska complex, has an area of over 2,800 sqm. The tenant was assisted in the signing of the contract and the process of arranging the new office by the consulting firm CBRE.
From the beginning of December at BNP Paribas Real Estate Poland, Małgorzata Fibakiewicz will head the Office Department and Justyna Magrzyk-Flemming will take up the position of Head of Business Services.
Lucia Niculae has been appointed Business Development Director of Romanian construction company Pedro Construct. She has been an investor since 2018 and currently manages her own property portfolio.
108 Agency promoted Matej Indra to Head of Industrial Agency for the Czech Republic.
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