ARTICLES LABELLED WITH TAG report

The year 2017 saw the greatest amount of industrial space built in Europe in its history – more than 3.7 million sqm. This represents a 68% increase over 2016 and a 55% increase over the existing record dating back to 2007 (an additional 1.2 million sqm). The total industrial space in the region has increased by 17% as a result. Such are the results of a survey conducted by Cushman & Wakefield, a company that has been monitoring the industrial property market in the Czech Republic, Slovakia, Poland, Hungary and Romania on a long-term basis.

According to data by JLL, the volume of office investment transactions concluded in Poland for 2017 was approx. €1.6 billion. A record-breaking €970 million of office investment deals was reported in major cities outside of Warsaw.

Although offices still comprise the majority of certified green buildings in Hungary, other types of properties are increasingly being certified, according to Colliers International’s latest green building market report.

Available space on the industrial property market in the Czech Republic decreased and it makes the situation for occupiers in seek of premises more complicated. Potential tenants have to put up with longer terms of project realization in new warehouse spaces. The Czech industrial property market has changed from a market of tenants to a landlords market, JLL reports.

Warsaw’s central office district went through a transformation process in recent years following the delivery of a number of modern office developments such as Q22 or Warsaw Spire, which have already been acclaimed as unique and landmark schemes. However, in addition to modern buildings and futuristic skyscrapers, this area is also home to second-generation offices developed before 2000 and historical buildings which form an integral part of the capital city’s centre. Michał Wachowicz, Consultant, Capital Markets at Cushman & Wakefield analysed Warsaw’s CBD.

With GDP growth outperforming by a significant extent neighbouring CEE countries, 2017 was very good for the real estate market in Romania, especially for office, investment and land segments. According to Colliers International’s new report, the market’s dynamism will be extended through 2018, supported by new demand and trends in the capital and especially in the major regional cities in the country.

The level of confidence in Central and Eastern European markets seems to have peaked according to the RICS Commercial Property Monitor. Expectations are still highly positive, but sentiment indices have topped out in the previous two quarters. Results for Q4 2017 demonstrate that both occupier and investment demand is still strong but the share of those who believe that some markets are close to peaking is growing steadily.

According to the latest analysis prepared by the Capital Markets team Cushman & Wakefield, investment volumes in Central and Eastern Europe reached nearly €13 billion in 2017. All CEE countries grew at a similar rate and maintained their share of the overall regional volume. Despite political risk perceptions, Poland grew most rapidly at 9% y-o-y from approx. €4.6 billion to €5 billion, which was the highest result recorded in the last 10 years. 2018 has already seen the benefit of deals that slipped from late 2017 with the investment volume in Q1 2018 likely to exceed €3 billion.

In 2017, approximately 360,000 sqm of new retail space was delivered to the Polish market, which is 15% less than in 2016. Most new shopping centres were completed in the eight largest agglomerations (over 66% of completions). Thus, at the end of 2017, the total stock of modern shopping centre space in Poland reached approximately 11.5 million sqm, according to Colliers International.

NEPI Rockcastle published its results for 2017. The total value of direct property portfolio owned and managed by NEPI Rockcastle exceeded €5 billion (including joint-ventures). Acquisitions and developments finalised during 2017 totalled €947 million, with 339,800 sqm GLA added.