Total property investment activity in Poland, the Czech Republic, Slovakia, Hungary and Romania was €7.6 billion during Q1-Q3 2020. This was the third highest volume on record and was despite the global Covid-19 pandemic according to Savills research.
The firm said total investment volumes by year end are forecast to surpass €10billion, which would be in line with the five-year average.
However, the figures were boosted by several portfolio transactions since the beginning of the year, which accounted for 44% of the total investment turnover compared to 24% last year.
The shares were particularly high in Poland (47%) and the Czech Republic (67%). Some of the largest transactions of 2020 took place in these two markets. These included the €1.3 billion Residomo apartment portfolio in Czech Republic in Q1 and the €1billion Goodman industrial portfolio across the region in Q3.
While offices continue to represent the largest market share at 38%, logistics now accounts for 30% of the total, overtaking retail at 11%, according to the international real estate advisor. At €2.3 billion, industrial investment over the first three quarters has already surpassed last year’s total.
“According to the latest Oxford Economics forecasts the five countries we monitor are likely to contract by -5.4%, compared to a -7.4% contraction across the EU. Despite the downward revisions, we anticipate the CEE capital cities to outperform their European counterparts in terms of GDP growth, with Warsaw at the top of the list of cities that are expected to weather the coronavirus storm best,” said Eri Mitsostergiou, director, European research, Savills.