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News Release

Prague

Q3 preliminary volumes keep CEE on track for a record level of investment activity in 2014


​Warsaw, Prague, Budapest, Bucharest, Bratislava, Belgrade, 6 October 2014  – International advisory company JLL presents its preliminary summary of investment transactions concluded in Q1-Q3 on the commercial real estate markets across Central and Eastern Europe (CEE).

The summer months have seen a hive of activity across the CEE with a preliminary transaction volume of over €1.5 billion recorded in the third quarter. This brings the preliminary year-to-date regional investment volume to more than €4.5 billion. This figure is already greater than the full year volume recorded in 2012 and €1.5 billion below the volume recorded in 2013.

Troy Javaher, Head of Capital Markets CEE, JLL, commented: “With the final quarter of the year often representing one of the busiest periods for our investment teams, and looking at the pipeline of deals that are in advanced stages, we predict that the CEE regional volume could reach between €6 billion and €7 billion by the year end. Should the latter happen, it would put 2014 at the highest level since the economic downturn and third highest in the past 12 years”.

Poland remains the leading market in terms of investment volumes with a 42% share, followed by the Czech Republic with 23%. Healthy levels of activity in Romania, Hungary and Slovakia, with the first few deals also being recorded in Bulgaria and Croatia, have also been registered.

The breakdown of volumes for Q1-Q3 2014 is as follows (€ millions):

Poland - 1,930
Czech Republic - 1,050
Romania - 510
Hungary - 440
Slovakia - 374
Other CEE - 275
Source: JLL, October 2014 (*Preliminary data)

Yields have remained relatively stable over the quarter with prime office yields (Warsaw and Prague) at between 6.00 - 6.25%. Retail yields for best in class products are at 5.50 – 6.00% and truly prime warehouse asset yields are expected at 7.00 - 7.25%.