Join Craig Smith and Winston Norman on the Coffee with Craig Show for your daily dose of CRE news in the CEE region, brought to you by EuropaProperty.com.
Polish Investment Market Shifts into Second Gear
In the first half of 2024, the Polish investment market saw a significant rebound, achieving a transaction volume of €1.8 billion—double the year-over-year figure, according to Avison Young. The office market recorded several notable transactions in regional cities, while the retail sector saw its largest transaction since early 2022. However, the warehouse sector continues to await major deals.
A decline in interest rates has sparked optimism for future market growth, signalling the return of more affordable financing and potentially boosting investor activity. The office market experienced a notable transaction with the sale of a portion of CPI shares to Sona Asset Management, the largest office deal since Q3 2022.
The retail sector accounted for nearly 30% of the transaction volume, driven by the significant sale of the Cromwell 6 shopping centres portfolio for €285 million. This marked the largest retail investment since Q1 2022 and underscored strong interest from CEE investors, particularly Star Capital Finance from Czechia.
Despite a slowdown, the warehouse sector saw 12 deals totalling €294 million in H1 2024, a 33% year-over-year decline. High financing costs and pricing adjustments between buyers and sellers contributed to this trend. Analysts predict a resurgence in warehouse acquisitions towards the end of 2024 or early 2025.
Looking ahead, Poland’s stable economic environment continues to attract European investors. Avison Young anticipates an increase in transaction volume for 2024, potentially surpassing 2023 and signalling future growth.
Industrial Park in Prague Letňany Changes Owners
Savills has facilitated the sale of Green Park in Letňany, Prague 18, to the Creditas Nemovitostní I fund. Built-in 2005, the nearly fully leased industrial property is located in a densely populated residential area with excellent connections to the D8 highway and Prague’s transportation network. Fraser Watson, Head of Investment at Savills, highlighted the strong investor interest in this well-located industrial asset, reflecting the liquidity of the Czech real estate market.
Atenor Completes E.ON HQ in Budapest
Atenor has completed BakerStreet Phase I, a new office building in Budapest’s South Buda area, now serving as the HQ for E.ON Hungária Group. The 16,643 sqm building features eight floors, terraces, and green spaces, designed by Artonic Design Architect Studio. Emphasizing flexible, hybrid working environments, the HQ integrates future-proof energy solutions, including a heat pump system and water recycling features. Norbert Schőmer, Country Director of Atenor in Hungary, emphasized the goal of creating enduring buildings and community spaces that seamlessly integrate into the urban fabric.
