CEE Investment Market – H1 2022 Summary
In H1 2022, the CEE Investment Market saw a number of transactions for a total of €5.3 bn. The office sector leads in the majority of the CEE markets
- Mateusz Polkowski
Poland maintained its position among CEE countries generating 54% of total investment transactions. Most deals were recorded in the office and retail sectors (45% and 27%, respectively).
In H1 2022, turnover in Poland was driven mostly by the office sector, reaching €1.3 billion in this segment, a 16% increase on the same period in 2021. The retail sector, being the second most active sector, saw total volumes of €0.8 billion. The industrial investment volumes reached €0.7 billion during H1 2022.
In the Czech Republic, the total investment volume in H1 2022 reached €1.2 billion, which represents an increase of 88% on the same period in the previous year and a 28% increase on H2 2021. The office sector was the most active during H1 2022, with a 49% share of the total volumes and a total investment volume of €599 million.
The Hungarian investment market generated a volume of approx. €600 million in H1 2022, which is similar to the H1 volumes recorded during the past 5 years. More than 85% of this volume included income-generating transactions, while the remaining 15% was made up by assets suitable for redevelopment purposes and development sites. Approx. 36% of the half-yearly volume was generated by a mega-deal: the sale of a significant part of Tesco’s Hungarian portfolio including 14 assets country-wide.
The property investment volume for Romania in H1 2022 is estimated at approx. €337 million, a value 9% higher than the one registered in the same period 2021. The investment volumes were dominated by office transactions, with approx. 62% of the total, followed by industrial (20%), retail (13%) and hotels (5%).
The investment volumes recorded in Slovakia in H1 2022 totalled approx. €350 -€400 million, equivalent to 5-year H1 average volumes. The highest volume was transacted in the retail sector, approx. 50%. Of the entire transacted volume, the office and industrial sectors represent approx. 22% and 17%, respectively.
The results seen in the first half of 2022 seem to be recovering after it faced pandemic uncertainty in 2020. However, due to Russia's act of aggression in Ukraine, there has been uncertainty that will undoubtedly affect the underlying prime yields in most real estate sectors.
More details in our latest report.