Investment volumes increased by 6% at the end of 2021. Colliers summarises the investment market in CEE
Despite the disruption of the pandemic, full year investment volumes for 2021, totalling €11.07 billion, were up by 6% YoY but 20% lower than the same period of 2019. Individually, most countries are behind their pre-pandemic volumes, but Poland, with 57% of 2021 volumes, has reached its 5-year, pre-pandemic average.
The construction, operation, financing, development and acquisition of commercial property in 2022 and beyond will continue to be impacted by the price of fuel, energy and construction materials. This will be combined with challenges in the supply chain, the nearshoring of operations and rapidly rising inflation. Culminating in a direct effect on sale prices and the rent paid by occupiers.
Colliers originally estimated that year-end volumes for 2022 could reach in excess of €12.0 billon, however, the war in Ukraine impacted this outlook. In the CEE region, we are registering some investors returning to a wait-and-see approach before making investment decisions. Similarly, we have seen some leasing deals put on hold or completely withdrawn. Some of these are claimed to have been related to Russian companies being involved and others due to the uncertainty of the war and its physical proximity. At the same time, there will always be those that continually look for and find opportunity even in the most challenging of times.
Download the report and find out:
- Q4 2021 prime yields and 12-month forecast
- CEE flows by sector
- CEE flows by origin of buyer
- What role ESG plays in investment decisions