Research shows CEE’s markets more distinct than you think

There is a tendency to generalise about the CEE’s component economies and real estate markets and, while there are similarities, it is “one of the most diverse regions” according to Dirk Sosef, head of research at logistics and industrial property specialist CTP.

CEE countries are similar in that they are, universally open for business, says Sosef.

“It’s very entrepreneurial, you see a lot of labour activity and the competitive labour rates really help,” he said. There is also considerable infrastructure development and foreign investment across the region.

Another similarity that Sosef has observed is the move to supply chain resiliency and the decoupling of the global supply chain by increasing the scale of inventories. The CEE’s location really helps in that respect, he explained.

CEE markets have expanding economies and an emerging middle class, “so you continue to see the rise of the bigger online retailers and the bigger retailers in the market,” Sosef said.

He said that there is also more diversity of demand and while the logistics firms are there, there are manufacturing value-add services: “There’s a lot going on,” Sosef added.

One major difference occurs in considering the maturity of the markets. Czech Republic is one of the more mature markets while Poland is more of an emerging market although more mature in terms of internet penetration. While other countries are developing and doing so at full speed,Poland is already experiencing rental growth.

“But other markets are catching up in terms of rents and in terms of market vacancy and demand,” Sosef added.