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May 17, 2022

Investor demand for prime retail assets, much lower compared with CE

Investor demand for prime retail assets in Central Europe is at its strongest since the market collapsed in 2008, Cushman & Wakefield reports, according to a press release remitted to Nine O’Clock.  Transactional activity in the first 4 months of 2011 has reinforced the dominance of the retail sector which accounted for virtually 50% of the previous year’s investment volumes. According to Cushman & Wakefield, investors are seeking increased exposure to select Central European economies, notably Poland and the Czech Republic, that look set to out perform many Western European markets in terms of GDP growth over the next 3 years. Related to Romania, Costel Florea, Partner, Head of Capital Markets Group Cushman & Wakefield comments: “In Romania, as compared with the other CE countries, the GDP growth forecast for 2012 – 2014 interval is 3.9% in 2012 and 4.7% in 2014; this forecast is even better than for Poland.

”Presently, the yields, for prime properties with retail development included, are with 150 – 200 base points higher than the prime properties in Central Europe. In Romania the yields value is between 8% and 9% for prime properties in the main cities. Compared with Czech and Poland, in Romania the investor demand is much lower. We have less number of investors interested to buy properties; therefore, there is no competition in biddings. On the short term this fact will lead to a relatively stability on prices with a minor growing trend, he added.

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