Press release – Cushman & Wakefield
- Retail sector showing signs of improving liquidity across the whole CEE region
- Price improvements with yield compression seen in all segments of the market
- Almost 20% price growth for industrial assets
Bratislava, 21 February 2022 – In 2021, commercial property investment volumes in CEE continued to trend upwards, increasing 6.9% on 2020. However, they still remained 15% below the five-year rolling average. Industrial and office investment activity predominated, and we saw notable evidence of price improvements with yield compression in all segments, but especially in the industrial sector, where the price growth was almost 20%.
Jeff Alson, International Partner, Head of Poland & CEE Capital Markets at Cushman & Wakefield, said: “Transactions in Poland confirm the fact that pan-European investors are targeting CEE. Prices reflect the industrial rental growth in the Czech Republic and there are indications that this trend applies to Poland as well. Office investment demand remained stable across the CEE region, albeit with the market failing to offer a large supply of the “perfect product”. We nevertheless expect to see more core plus transactions in 2022 and higher volumes in general, driven by Warsaw and regional city markets in Poland. Retail is now showing signs of greater liquidity across CEE.”
Hungary witnessed an increase in overall investment volumes compared to 2020, but the real challenge there remained the availability of stock to transact – particularly in the industrial sector, where only EUR 29 million was transacted in 2021, whilst continued demand thrust yields downwards by over 100 bps. Developments on the Czech property market will continue to be determined by available products for sale. Currently, there is a minimal level of these compared to Poland, for example, but also as compared with Western Europe in general. Due to highly limited activity levels, the market will not have a clear overall direction – excluding the clear popularity of industrial properties. After the transaction volume of around EUR 1.4 billion in