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July 31, 2021

Specific to Central and Eastern European states: Real-estate transactions, strong economic growth stimulus

+ Romania’s 2015 results were “robust” and the 2016 forecast points to sustained growth in investor interest

A recent CBRE report shows that real-estate investment in the main countries of Central and Eastern Europe (Romania, Czech Republic, Hungary, Poland and Slovakia) stood at EUR 8.4 bln in 2015, up by 14 per cent year-on-year and far above initial projections. CBRE is the world’s leading commercial property and real-estate services adviser.
The upward trend in retail products’ attractiveness, manifested since 2013 and 2014, materialized in 2015 in really remarkable results, the CBRE Group report shows. Retail investment reached, for the first time, 43 per cent of total investment in Central and Eastern Europe. The annual growth of retail investment is substantial, over 160 per cent, and is mainly due to the multitude of major transactions that took place in the Czech Republic and Poland.

In Romania, the investment volume predictably stood below the level registered in 2014 – a year with unusually high results, marked by a major transaction on the retail segment. Romania’s 2015 results, CBRE Group points out, were “robust” and the 2016 forecast points to sustained growth in investor interest.

Real-estate investment in Central and Eastern Europe (excluding Russia) reached a historic high of EUR 9.55 bln in 2015, up by 19 per cent year-on-year, CBRE’s most recent regional report shows. The best results were registered in Poland and the Czech Republic, with investment volumes of EUR 4 bln and EUR 2.7 bln respectively. Most of the regional countries registered significant positive results, with the volume of transactions registering strong growth in the Czech Republic, Hungary, Poland and Serbia.

“Last year we witnessed intense activity in the region, since investors from Europe want to take advantage of the relatively high yields and of the amplitude of the stock available on the market. We expect this trend to continue in 2016, since there are premises of strong economic growth in the region, yields relatively higher compared to those in Western Europe and high interest on the part of investment banks. Moreover, another major factor that will contribute to investors’ heightened interest is the upward trend of retail sales in the region,” Gijs Klomp, Head of CEE Investment Properties, stated, Agerpres informs.

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