The total CEE investment volume in 2020 reached a total of over €9.7 billion, representing an almost 32% decline from 2019, JLL reports.
Poland continued its dominance with 57% of total CEE volume and notably a strong year in logistics. Q1 was very active with roll-over deals from 2019 but as the year progressed volumes declined compared to previous years with a country total of €5.6 billion.
This is a 30% decline from 2019, but still the 3rd highest volume on record.
Czech Republic registered the largest deal in its history with the Residomo transaction of €1.3 billion
Excluding this transaction, the Czech market saw a 52% decline in volumes. Investor demand remains strong for core product but there were limited core office transactions – notably only Churchill Square and Rustonka, both in Prague.
Investment volumes declined by 32% in Slovakia
In Slovakia, despite a very promising start to the year and expectations of 1bn, investment volumes actually declined by 32% as a result of Covid-19.
Investor demand remains in strong for core and core+ industrial product as the occupational market recovered in Q4 2020.
In 2020, prime yields saw some upward pressure in comparison to 2019, with the most visible decompression in the office and retail sectors. The logistics sector is expected to see some small compression as 2021.
In Hungary there was a smaller decline of 25% with a market dominated by the office sector representing 65% of investment volume.
The previous high dominance of domestic capital in 2019 has been reversed back in 2020 to an equal split between foreign and domestic capital.
Romania, the only country in the region to show an increase
In Romania, 2020 started with a large pipeline of transactions; several high-profile office deals were in advanced stages of negotiation.
While the outbreak of COVID-19 had a significant impact on the investment market, the total transaction volume for 2020 represented a significant increase from 2019.
The only country in the region to show an increase, driven mainly by the large NEPI Rockcastle portfolio acquired by AFI.