Strong trading in Russia (€2.5 billion) has resulted in total property investment volumes at around two thirds of the dealings seen during 2012 overall. While Poland (around €750 million) is less active compared to previous quarters, a strong asset pipeline and several significant preliminary signings are expected to push-up investment volumes later in the year.
To date, ten transactions worth over €100 million have been closed in 2013 across CEE, confirming investor demand for substantial acquisitions. This trading of high quality, large lot sizes is expected to continue and will remain a driver of strong investment flows into CEE over the remainder of the year. A number of large scale properties and portfolios are anticipated to be signed soon, including the €400 million Silesia City Center in Katowice, a large scale shopping centre acquired by a consortium led by Allianz.
Property investors that have been considering acquiring non-prime assets are also gradually entering CEE markets as they seek to benefit from low liquidity in the non-prime segment. Interest exists in most CEE markets; however, most profoundly in the Czech Republic and Poland.
Strong investor interest in CEE is in line with the forecasts made in CBRE’s annual Real Estate Investor Intentions survey. The research, which is completed by more than 360 high-level respondents across the property investment community, revealed that 14% of investors view CEE as the most attractive investment choice for 2013. (source: CBRE)