Commercial property investment in Central and Eastern Europe (CEE) stood at €3.7 billion (£3.14 billion) at the end of May 2013, according to the new MarketView report by CBRE.
This is already a 30 per cent rise, compared to the first half of 2012. Much of this has been driven by healthy transactions worth €2.5 (£2.14 billion) billion in Russia. Furthermore, there has been considerable interest from potential buyers in the Czech Republic and in Poland; the latter of which may have seen less active volumes - €750 million (£643.4 million) - in the last few quarters, but has is a strong asset pipeline.
In total, there has been ten deals worth at least €100 million (£85.6 million) in 2013 already across CEE, with many analysts suggesting that demand is set to continue until at least the end of the year. The €400 million sale of Silesia City Center in Katowice, Poland being an example of a large, upcoming deal.
Many investors are now shifting their gaze to the commercial market, especially when it comes to secondary properties. Mike Atwell, CBRE Head of Capital Markets, CEE and Poland, said: “Investors believe that they can generate value on the back of good quality locations in combination with value-add properties, some even in regional locations. We are now seeing several investors looking more positively at the regional locations across Poland in both the retail and office sectors as long as the basic real estate fundamentals are strong and there are opportunities for value enhancement through asset management activities.”
This news follows CBRE's Real Estate Investor Intentions survey, which revealed that 14 per cent of investors are viewing CEE as the most attractive investment choice for 2013. With prime sites already in high demand, and now renewed interest for secondary assets, the sector may be a good bet for investors.