Q1 Property Report Poland Leads CEE Investment Transactions

May 20, 2014 No Comments

52-londonThe JLL report for the first quarter of 2014 revealed that Poland showed the highest sales transaction volumes in CEE and accounted for nearly 69 percent of the net transaction volume in the region. The net transactions in CEE during Q1 stood at € 1.37 billion. The transaction volumes roughly climbed up by 19 percent when compared to its  previous € 1.15 billion from 2013′s Q1. The Polish property market was followed by real-estate markets in the Czech Republic with 16 percent, Slovakia with 5 percent, Hungary with 4 percent and Romania with 1 percent. Slovenia, Croatia, Serbia and Bulgaria made up for another 5 percent.

Polish property market makes a promising start in Q1

Poland contributed a staggering € 940 million to the net CEE transactions made during Q1. Poland even ranked in the first place amongst CEE countries that reported the biggest transactions in the same period. Agata Sekula, JLL’s Retail Investment Head for Central Europe, says that the year-on-year increase in acquisitions of 19 percent that was recorded in CEE in Q1 was spearheaded by the exceptional start made by the Polish market this year. The interest shown by overseas investors and the current transactions in the Polish market makes 2014 a promising year for Polish real-estate, and that it may even outdo its 2013′s results.

Investors vying for the retail sector are expected to focus on prime cities and towns in  Poland . The investors’ appetite in the industrial real-estate market is anticipated to be driven by Class A facilities that are situated in thriving locations and are obtained through long-term leases. The yields from prime office spaces in Poland have decreased in the past six months and are currently fluctuating in the range of 6.00 to 6.25 percent. Warehouses in prime locations saw their yields drop to the range of 7.25 to 7.5 percent. On the other hand, retail yields are at a stabilized rate of 5.75 percent.

Commercial property market picks pace in CEE

JLL estimates reveal that office buildings accounted for the highest number of acquisitions, that came up to 56 percent of the net investment volumes. Amongst large scale transactions, the Warsaw office building acquisition made at € 300 million by BlackRock was in the leading spot. Retail, industrial and hotel sectors followed with a 29 percent, 9 percent and 6 percent respectively. The biggest industrial sector transaction was the acquisition of Panattoni Park Blonie I and Panattoni Park Wroclaw by Hillwood.

CEE Capital Markets Head in JLL, Troy Javaher says that although Poland leads the investment destination charts in CEE, Hungary, Romania and Slovakia have shown considerable progress in their deals. He predicts that the markets will gather further momentum from cross border portfolios and other platform opportunities. The investment volumes in CEE in 2014 may surpass those experienced during 2013, he adds. Major markets like Warsaw are expected to witness many transactions in the commercial property market in the coming term.

Tags: European Property News, Global Property Data

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