The region transacted 5.47 billion EUR, with Poland accounting for 50% of this total.
In a very positive scenario CEE real estate investment volumes may even outperform the 13.23 billion EUR level seen in 2018's record-breaking performance. Poland may be close to the excellent volumes registered in 2018, due to the extensive pipeline for H2. In the Czech Republic, investment appetite remains strong. However, the country's market is hampered by a limited supply of prime assets. The results recorded in H1 in Hungary and Romania may even triple by year-end, reflecting excellent performances, especially with regard to Romania.
Mike Atwell, Head of Capital Markets Czech Republic & CEE, JLL
Poland at the forefront of the CEE market
The H1 2019 real estate investment volume of 2.72 billion EUR represents the second-best volume ever achieved in Poland. Yields remained stable across all asset classes, with further compression expected by year-end, excluding retail. There were around 60 transactions concluded throughout H1 2019, with the office sector dominating the investment landscape both in terms of volume and the number of transactions. The split across sectors was 1.67 billion EUR for office, 430 million EUR for retail, 374 million EUR for industrial, 135 million EUR for hotel, 47 million EUR for residential, and others 60 million EUR. Asian capital accounted for more than one third of acquisitions in terms of transaction volume, with the Polish office and industrial sectors attracting significant attention from far-eastern capital sources.
Tomasz Trzósło, Managing Director, Poland & CEE, JLL
Poland's office sector hits best-ever H1 result
In H1 2019 we recorded a wide range of office investment transactions ranging from core, core+, through to value-added and opportunistic. This activity is set to continue in H2, with finalizing office deals in Warsaw and regional cities. Overall, deals worth over two billion EUR are currently on different advancement stages.
Robert Sztemberg, Business Development Director, Capital Markets, JLL
Stable Poland’s retail investment market
Total retail investment volume stood at 728 million EUR by the end of July 2019 with a number of significant transactions concluded including Atrium Felicity in Lublin and Atrium Koszalin acquired by ECE European Prime Shopping Centre Fund II from Atrium for 298 million EUR; and four M1 centres in Bytom, Częstochowa, Radom and Poznań acquired by EPP from Chariot Top Group B.V. for 224 million EUR, King Cross Jubilerska in Warsaw acquired by Atrium European Real Estate for 43 million EUR as well as the recently opened Silesia Outlet in Gliwice acquired by NEINVER and Nuveen Real Estate for 31.5 million EUR.
Agnieszka Kołat, Director, Retail Investment CEE, JLL
The majority of this year's retail investment transactions has been concluded during the last two months and investor activity is picking up. We hope that this trend will continue, and more sales and acquisitions of retail assets will take place in the second half of the year
Agnieszka Kołat, Director, Retail Investment CEE, JLL
The best-ever H1 industrial investments results in Poland
In Poland’s industrial sector, volumes in H1 2019 stood at 374 million EUR. This is the sector's best ever performance. As in the office industry, investors with Asian capital resources – particularly from South Korea – were remarkably active in the Polish logistics sector.
Robert Sztemberg, Business Development Director, Capital Markets, JLL
