Cushman & Wakefield’s most recent study of Central Europe’s real estate investment opportunities has found €3.5bn worth of product is currently available. That’s a slight increase over the last quarter, and the agency says roughly half of it is in the retail sector, while 58% of the total is located in Poland (the study looks at Poland, Czech Republic, Slovakia and Hungary).
“We have seen strong pricing in the Czech Republic during the first quarter of 2011 compared to last year. This is starting to bridge the gap between buyer and seller expectations. That has triggered a number of assets to be brought to the market by owners,” says James Chapman, Partner and Head of Capital Markets at Cushman & Wakefield Czech Republic and Slovakia.
Chapman also suggests a slight easing in the water-tight conditions demanded by investors.
“We are also seeing some of the strict conditions about the characteristics of new purchases being relaxed by investors. This is being caused primarily by new sources of capital being in a position to buy thus creating greater competition and confidence in the depth of the market,” adds Chapman.
Charles Taylor, Partner, Cushman & Wakefield added “There remains, however, a lack of core product in the capital cities, particularly in the office sector, with owners preferring to hold ‘best of class’ buildings in anticipation that the market will continue to improve in their favour. In Hungary availability levels remain low. This is expected to change, as activity levels increase, aided by improving fundamentals and investor sentiment, and particularly the sizeable pricing discount that is currently available relative to the Polish and Czech markets.”