Commercial real estate investment in central and eastern Europe reached €2.6bn in the first quarter, three times the level achieved during Q1 last year and the highest first-quarter result since 2008, according to new research from CBRE.
The most active markets were Russia (€1.8bn) and Poland (€400m), although the smaller economies within the CEE have also seen an increase. The largest transactions were in Moscow: Metropolis shopping centre was acquired for around €900m by Morgan Stanley Real Estate Investing and AFI Development acquired the remaining 50% in Aquamarine BC III.
In Poland significant deals were RREEF’s acquisition of Green Corner and Hines Global REIT’s acquisition of New City, both in Warsaw.
Offices and retail continued to dominate, representing 44% and 37% of the market respectively.
Industrial properties are increasing significantly in popularity, however; the sector now accounts for 19% of total property investment volume during Q1 2013.
Jos Tromp, head of CEE research and consulting at the firm, said: “Interest in industrial properties is driven by a variety of factors including relatively low rent levels, limited development activity (both with the exception of Russia), and a relatively high income component in total returns compared to more traditional asset classes.”
