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.
Strong Recovery in Central Europe’s Real Estate Market
Central Europe’s commercial real estate market saw a 43.4% increase in investment volumes in H1 2024, led by strong activity in Poland, which posted a 113% rise. The logistics and industrial sectors drove the recovery, with retail also benefiting from increased consumer confidence.
Poland led the region’s growth, followed by Romania and Bulgaria. However, countries like Hungary and Slovakia saw declines, largely due to one-off transactions and a focus on smaller deals.
The market is expected to continue recovering, with local investors playing a key role while international capital remains cautious.
Cushman & Wakefield’s Michal Soták, says: “The investment sector is undergoing a significant shift. Historically, office investments accounted for 60 percent of the transaction volume. However, core capital is now venturing into new territories, such as retail parks and residential-for-rent projects and portfolios.”
Poland Among the Top Industrial and Logistics Markets in Europe
Poland’s industrial and logistics market continues to grow rapidly, as revealed in BNP Paribas Real Estate Poland’s Q2 2024 report. Occupier activity reached a record 1.76 million sqm, with large leases (20,000-130,000 sqm) making up 56% of the total.
Notable deals include LPP leasing 103,000 sqm in Bydgoszcz and LX Pantos renewing 72,000 sqm in Wrocław. Developers also increased construction, with 1.64 million sqm added in H1 2024, pushing Poland’s total industrial stock to 33.52 million sqm. Around 2 million sqm of space is currently under construction.
Kraków’s industrial and logistics stock surpassed 1 million sqm by the end of Q2 2024. The region’s low vacancy rate of 6.4%, compared to the national average of 8.3%, reflects its strong demand. Kraków’s success is driven by excellent transport infrastructure, available development land, and a skilled workforce.
The largest Hampton by Hilton in Mainland Europe Opens in Vienna
The Primestar Group has opened the largest Hampton by Hilton hotel in mainland Europe: the Hampton by Hilton Vienna City West. The hotel is designed to cater to both business and leisure travellers.
Primestar’s Chief Commercial Officer, Ronald Nilsson, expressed excitement about the opening, emphasizing Vienna’s cultural appeal and the hotel’s prime location. Hotel manager Eva-Maria Wittmann highlighted the focus on comfort and service, aiming to make guests feel at home.
The property is managed by Primestar Hotel Group, with support from investors Lambert Immobilien and W-One Capital.
