CEE Real Estate Investment Volumes Q3 2023

During the year's third quarter, 82 transactions were concluded, with an average ticket size of 20 mln. EUR. Six transactions had a value above 90 mln. EUR, in 4 different countries concerning office, retail, and industrial properties. The largest transactions involved an industrial and an office property in Poland and Slovakia.

Marginal QoQ upward changes of prime yields in CEE region: at the end of Q3 2023, CEE-5 countries kept the prime yield stable compared with Q2 2023; only Poland and the Czech Republic decompressed the office prime yield and Hungary for the industrial properties with 0.25 pps. The short-term forecasted evolution involves further decompressions for all real estate sectors.

The investment volume of the first nine months of the year had a decrease of 46% compared with the similar period of 2022. The major changes could be observed in PL and RO, followed by the Baltics region. As investors within the region are still scouting for investment properties but maintain a standby position alerted by the inflation level and still high interest rates.