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News Release

Prague

Investors’ appetite for CEE properties remains strong; a quarter of the region’s transactions were registered in the Czech Republic

In H1 2014, an investment volume of approximately €2.87 billion has been recorded in CEE.


​Prague, 16 July 2014 – JLL presents its H1 2014 investment market summary of the commercial real estate market in Central and Eastern Europe (CEE).

Troy Javaher, Head of Capital Markets CEE, JLL, said: “In H1 2014, an investment volume of approximately €2.87 billion has been recorded in CEE. This represents a circa 65% y-o-y increase in volumes compared to the same period of 2013 (€1.7 billion). Poland remained the leading market in CEE with a share of circa 50%, followed by the Czech Republic (25%), Romania (15%), Hungary (8%) and Slovakia (2%). The SEE markets - Bulgaria, Croatia, Serbia and Slovenia - are currently being monitored by investors but did not record any significant transactions in the first half of 2014.’’

Transaction volumes remain robust in many markets and has produced further prime yield compression in recent quarters. Inward movement is expected to continue this year, albeit at a modest rate with levels now close to their previous lows in many locations.

The eighth edition of JLL's Global Real Estate Transparency Index, covering 102 markets worldwide, shows that the Central and Eastern European sub-region has seen the greatest shifts in transparency across Europe. Two of the top improvers in 2014 have been Romania and Serbia, followed by Hungary. Poland and the Czech Republic, which both lead the transparency ranking in the sub-region, have shown limited improvement in 2014. For many cross-border investors, transparency levels are now 'acceptable', which may explain the loss of some impetus of transparency advances in the two countries.

Among the EU's 28 members, the highest GDP growth in Q1 2014 was recorded in Hungary and Poland (both +1.1%) . Although individual CEE economies continue to recover at different speeds and from different base levels, all markets in the region are forecast to register positive economic growth. This is reflected in the investment volumes across the region.  


H1 2014 Investment Volumes in CEE (€)
Poland    1.43 billion
Czech Republic    713 million
Romania    431 million
Hungary    230 million
Slovakia    64 million

Source: JLL, H1 2014