Six months worth of billions

Over 2 bn Euro is the total value of all transactions on the real property market in the Central Europe during the first six months of 2011. Until the end of the year, it may increase to 5 bn euro.

According to Cushman & Wakefield’s data during the first 6 months of 2011 the sum of all investment transactions on the real property market in the Central Europe amounted to 2.09 bn Euro. Compared with the second half of 2010 it is a 14 per cent increase (from 1.83 bn euro)

The largest number of transactions accrues to Poland, where, since the beginning of the year, their value amounted to 875 m euro (1.27 bn in the second half of 2010). The growth was observed in the Czech Republic (from 78 to 233 m euro). Over half of the transactions were the portfolio investments. One of the largest was the takeover of Europolis, along with all the real properties (among others Poleczki Business Park, which is still under construction) by CA Immo, along with purchase of the logistics centre VGP by AEW Europe.

Transactions on the real property market amounted to 45 per cent of all investments (947 m euro), on the retail market 30 per cent (623 m euro) and the warehouse sector 25 per cent (511 euro) – inform Cushman & Wakefield analysts. The capitalisation rates for office buildings amounted to, on average, 7.1 per cent (7.4 per cent during the last half year), and retail buildings 7.5 per cent (previously 7.2 per cent) and for warehouses 8.2 per cent (8.5 per cent in the second half of 2010).

According to analysts, the transaction sum in Poland, the Czech Republic, Romania, Slovakia and Hungary can amount to 2.8 bn before the end of the year. The third and fourth quarter will bring further increase in the transactional activity and the investment volumes in all markets will slightly exceed last year’s level – says Charley Taylor from Cushman & Wakefield. We expect the maximum of the activity on the market of the real property market to take place on the last months of the year.

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