The value of investments in the commercial real estate market in the Central and Eastern Europe region in 2021 increased by 6% year on year and totaled EUR 11.07 billion, Colliers company reported. The war in Ukraine may stop some investments in the region.
According to the Colliers report “CEE Investment Scene 2021/2022”, for the construction, operation, financing, development and acquisition of commercial real estate in 2022 and in the following years the prices of fuels, energy and building materials will be of key importance.
“The situation will be influenced by challenges related to maintaining the supply chain, nearshoring, i.e. moving production closer to the outlets, and rapidly rising inflation. All the above-mentioned factors will also translate into real estate sale prices and the amounts of rents paid by tenants,” emphasize the authors of the report.
Colliers experts add that despite the disruptions related to the pandemic, the investment volume for 2021 increased by 6% year on year and totaled EUR 11.07 billion. However, it was 20% lower than in 2019. There was a significant recovery in the last quarter of the year, with some markets still struggling with a lack of available products. Poland with 57% participation in the region is one of the few countries to return to its 5-year pre-pandemic average.
According to Piotr Mirowski from Colliers Polska, Poland is recovering from the pandemic stronger, with greater liquidity and valuation records in most market sectors.
“The Polish market has proved that despite pandemic restrictions and related restrictions for investors, it enjoys a large and still dynamically growing interest of global capital and will play an increasingly important role among key European real estate markets”, says Mirowski.
Before the outbreak of the war in Ukraine, Colliers experts estimated that this year’s volumes may exceed EUR 12 billion. Russia’s attack on Ukraine has verified these forecasts – Colliers has observed that some investors are holding back in making investment decisions in the region of Central and Eastern Europe.
The Colliers report shows that in 2021, 36% of the number of transactions were made funds by companies from Western and Northern Europe, in particular from Germany, Great Britain, Austria and Sweden. Investors from Central and Eastern Europe were also very active, with a share of 32%. The greatest activity was shown by the Czech capital.
Arkadiusz Słomczyński order