Construction & Real estate

The major performers in CEE real estate continue to demonstrate the best results for government finance within the EU with its continually growing property market. Poland, Hungary, the Czech Republic and Slovakia are the leading countries in terms of investment activity, with stock rankings of their respective capitals remaining the top locations following record transactions totalling 1.4 million sqm of office space in 2013. There is currently 600,000 sqm of office space in the CEE region expected for delivery in 2014.

The highest amount of new space is occurring in Warsaw, where it totalled €497 million in the second quarter for 2013, while the Czech Republic benefited more strongly with total investment in 2014 outperforming the previous year by more than three times at €340 million. Romania is also a core CEE market, with office stock amounting to 1.6 million sqm in Bucharest in December 2013.

About half the volume of CEE transactions concentrate on office space, while retail, industrial and even hotel assets are growing sectors for investment, while prime, landmark shopping centres are the focus of investment in Poland and Czech. The total shopping centre area for lease in Lithuania amounts to 780,000 sqm, while modern warehousing space amounts to 753,000 sqm, which is roughly the same as Latvia. Estonia boasts over 900,000 sqm, while Serbia’s capital of Belgrade still suffers from a lack of modern retail space in spite of opening the Stadion Shopping centre, while Bulgaria plans to complete of three new retail construction projects to be delivered in 2014.