At almost €9 billion, 2015 represented the third highest CEE regional investment volume on record and the second highest volume on record for both Poland and the Czech Republic. Whilst the two leading markets attracted 76% of regional volume, 2015 saw growth and continued interest in Hungary, Romania, Slovakia and the SEE region as a whole.
A full year breakdown saw Poland pull in a record-breaking H2 volume to bring its 2015 share to 46%, followed by the Czech Republic (30%), Hungary (9%), Romania (7.5%), Slovakia (4.5%), and the SEE (other CEE) markets (3%).
The weight of both international and domestic capital seeking opportunities across the CEE region has provided increased liquidity for a wide range of properties, especially those with large lot-sizes or making up portfolios and platforms.
As core European markets continue to become increasingly tight, the CEE region will attract further capital and re-pricing. Prime office yields, for example, have sharpened in recent quarters but have not yet reached their pre-crisis lows. Further compression is expected, although at a slower pace than seen in the previous 24 months.
Looking at a list of ongoing deals and those that comprise the pipeline, we expect 2016 to be another good year for the region.