Market H1 2021
During the first six months of 2021 the CEE investment market saw a number of transactions for a total of over €4.6 billion.
Poland maintained its position among CEE countries generating over 53% of total investment transactions. However, shares within sectors have changed significantly, with most deals being recorded in the I&L and office sectors. The industrial sector continued its leading activity with a turnover of €855 million – the second best-ever result for H1. Although the office sector recorded strong Q1, it decreased in Q2 resulting in a 40% decline in H1 2021 compared to H1 2020.
In Czech Republic, the office sector was the most dominant in Q1 2021 and represented 55% of the investment volume with the largest transaction of Parkview in Prague 4 of €77 million. Moreover, an increased activity has been observed in the Residential sector, specifically within rental apartments.
In H1 2021, Hungary noted a comparatively low investment activity, similar to 2020, yet lower than expected. The strongest activity was recorded in the office asset class, generating ca. 80% of the half-yearly volume totaling in ca. €500 million – the strongest half-yearly volume on record. A very minimal activity was observed in the logistics and hotel asset classes with no closings in retail.
The Covid-19 pandemic impact on the Romanian market was lower than expected, with investment volumes remaining at a healthy level, both in 2020 and H1 2021. All transactions, which started during the pandemic were closed in H1 2021 and the number of deals increased, dominating in the office sector, which generated almost 64% of all transactions. The largest transaction was the sale of the Campus 6.2 & 6.3 buildings, in the Center-West submarket of Bucharest for approximately €97 million.
Slovakia noted the second best H1 result in the total investment volume of estimated €538 million (incl. land). Compared to H1 2020, the H1 2021 volumes increased up to 19% with retail sector dominating and generating 53% of all transactions. The largest deal was a sale of Aupark Bratislava shopping centre.
The outlook for 2021 is with cautious optimism but the outcome will be dependent on the successful roll out vaccination programme and a return to confidence in the markets. Leading international and domestic regional investors are still heavily focused on investing into the CEE region, especially in the industrial sector which seems to be the least affected by the global pandemic.
More details in our latest report.