The pandemic continues to impact on capital markets, with CEE investment flows down by almost 48% on Q1 2020, at ca. €2.0 billion, with preliminary EMEA volumes estimated to be down ca. 30% YoY. Despite the slow start, Colliers currently estimate that CEE 2021 year-end volumes will reach similar levels to 2020, of around €10.0 billion. While the investor pool remains diverse, Western European capital was most active and responsible for ca. 50% of all volumes. German and UK funds in particular (16% each) were most active, followed by CEE capital who were investing mainly in their own domestic markets.
Poland captured ca. 65% of all volumes, followed by the Czech Republic and Hungary with 14% and 11% respectively. Overall, the Offices sector secured 50% of the total transaction volume, followed by Industrial and Logistics (28%) and Retail (11%). Pricing remained relatively stable overall, but further compression in prime Industrial and Logistics yields are expected throughout the year, subject to transactional activity, which is reliant on product availability.
For further details, take a look at our most recent research piece The CEE Investment Scene Q1 2021.