Investors' Interest Remains Strong in the CEE region

Investor appetite remains strong for CEE but a cautious approach is still being applied while markets try to settle, Colliers International reveals in its latest 'H1 CEE Investment Scene' report.

CEE Investment volumes for the first half of 2020 reached ca. € 6.26 billion. This figure was boosted by 2 large portfolios totalling in excess of €2.2 billion, with Poland and the Czech Republic taking a 78% share of the CEE-6 total.

The large residential portfolio transaction by Heimstaden represents 67% of the total volume traded in the Czech Republic and ca. 21% of total volumes. The acquisition of the 61.5% GTC shares from Lonestar by Optima across CEE represents 15% of total CEE6 volumes.

Aside from the large residential portfolio traded, the Office and the Industrial & Logistics sectors both performed well with 41% and 22% of the volumes.

According to Kevin Turpin, Regional Director of Research | CEE, “unsurprisingly, the Retail and Hotel sectors remained somewhat more limited in activity, being among the hardest hit sectors by the pandemic. In terms of pricing, Prime Industrial and Logistics yields have remained stable, with some compression in select markets. Prime Office yields have moved out on average by 25 bps while prime retail has moved by 50 bps. Investor appetite remains strong for CEE but a cautious approach is still being applied while markets try to settle and travel restrictions still apply from some parts of the globe.”