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.
CEE Markets Witness Investor Surge
JLL, in cooperation with iO Partners, announced that investors returned to Central and Eastern Europe (CEE) markets in H1 2024, with investment activity reaching €3.3 billion, a 41% year-on-year growth. Poland led the region, while the Czech Republic saw €859 million in investment. Hungary experienced a 35% drop, while Romania doubled its investment volume from H1 2023. Slovakia’s investment hit €120 million, dominated by the industrial sector. The outlook for H2 is optimistic, driven by improving liquidity and supportive monetary policies.
Poland’s H1 investment turnover hit nearly €1.7 billion, up 91% from 2023. Two major deals, including CPI Property Group’s €250 million sale of a 49% stake in Vulcanion, drove this growth.
“Throughout 2024, the CEE investment market shows signs of resilience and adaptability. We anticipate that the second half of the year will offer further opportunities for growth and value creation in the CEE region,” says Charles Boudet, CEO of iO Partners.
Citylink Sells Land to DSV in Łódź
Polish developer CL Property sold land to DSV for a new logistics center in Łódź as part of DSV’s green transformation plan. The facility will feature eco-friendly designs, including photovoltaic panels and water management systems. Construction is set to begin in early 2025, with completion by the fourth quarter.
“We are pleased that the excellent location offered by the Citylink Łódź project will contribute to achieving the DSV Group’s goals of reducing the carbon footprint of its operations,” comments Michał Gonicki, Leasing & Asset Manager at CL Property.
“ESG is now a significant part of the strategy for many of our business partners, and we not only adapt to this trend but strive to be its pioneer,” emphasizes Wojciech Cipiur, CEO of DSV Solutions Poland.
Polish Office Market Update by Walter Herz
The Warsaw office market is thriving with rising demand and fewer vacancies, while regional markets face higher vacancy rates. Warsaw saw 320,000 sqm of office space leased in H1 2024, driven by renegotiations to avoid relocation costs. New office developments have slowed down nationwide, with only 500,000 sqm under construction, compared to 1.9 million sqm pre-pandemic.
Regional office markets have seen a drop in demand, with vacancy rates around 18%, compared to 10% in Warsaw. Krakow leads in office demand, with over 90,000 sqm leased in H1 2024, followed by Tricity and Wroclaw. Construction activity is highest in Krakow and Katowice, with projects like Grundmanna Office Park and AND2 in development.
