CEE Investment Market H1 2021
JLL presents CEE Investment Market H1 2021
During the first six months of 2021 the CEE investment market saw a number of transactions for a total of over €4.6 billion.
Poland maintained its position among CEE countries generating over 53% of total investment transactions. However, shares within sectors have changed significantly, with most deals being recorded in the I&L and office sectors. The industrial sector continued its leading activity with a turnover of €855 million – the second best-ever result for H1.
Although the office sector recorded strong Q1, it decreased in Q2 resulting in a 40% decline in H1 2021 compared to H1 2020.
The Covid-19 pandemic impact on the Romanian market was lower than expected, with investment volumes remaining at a healthy level, both in 2020 and H1 2021. All transactions, which started during the pandemic were closed in H1 2021 and the number of deals increased, dominating in the office sector, which generated almost 64% of all transactions. The largest transaction was the sale of the Campus 6.2 & 6.3 buildings, in the Center-West submarket of Bucharest for approximately €97 million.
The outlook for 2021 is with cautious optimism but the outcome will be dependent on the successful roll out vaccination programme and a return to confidence in the markets. Leading international and domestic regional investors are still heavily focused on investing into the CEE region, especially in the industrial sector which seems to be the least affected by the global pandemic.