According to the latest report of global property consultant Cushman & Wakefield released yesterday, real-estate investment activity in Central Europe grew substantially in 2011, with EUR 6.1 billion invested in the core markets of Poland, Czech, Slovakia, Hungary and Romania. This is more than double the EUR 2.9 billion invested in Central Europe during 2010. Poland continues to lead the region, but Czech experienced the largest increase in transaction volumes year on year, increasing from EUR 479 million in 2010 to EUR 2.2 billion in 2011. Poland remained in front with EUR 2.58 billion transacted in 2011. Hungarian investment volumes increased from EUR 240 million to EUR 728 million, Romania edged forward with volumes increasing from EUR 241 million to EUR 320 million, whilst EUR 263 million was transacted in Slovakia in 2011, up from EUR 53 million in the previous year.
Transaction volumes in Central Europe had been expected to exceed EUR 6 billion in 2011 following a strong performance in Q1 and especially Q3, however, momentum was lost in Q4 as investors assessed the market turmoil that returned to the Eurozone, and bank lending slowed. Commenting on the outlook for 2012, Charles Taylor, Partner at Cushman & Wakefield said: “(…) Moving into 2012, we see increased disparity across the region in terms of property market fundamentals and importantly, a widening gap in investor confidence. Given the more difficult financing environment, we don’t expect 2012 volumes to match the previous years; our forecast is around EUR 5 billion.”