Russia and Poland accounted for the overwhelming majority of real estate investment in Central & Eastern Europe in the first three months of 2013.
Latest figures from CBRE show total commercial real estate investment in the region reached €2.6 bn in Q1. Russia dominated with €1.8 bn of deals, followed by Poland at €600 mln.
CBRE said the total investment volume for CEE is three times the level achieved during Q1 2012 and is also the best first quarter result in the last four years. Offices and retail continue to dominate, representing 44% and 37% of the CEE market respectively.
For Poland these figures stand at 71% and 10%. Industrial properties are becoming increasingly popular and constituted 19% of the total property investment volume in Q1 2013 in CEE and 17% in Poland.
In Poland significant deals were RREEF’s acquisition of Green Corner from Skanska Property Poland for €94.6 mln and Hines Global REIT’s acquisition of New City from ECI for €127 mln, both in Warsaw.
Although smaller economies within the CEE region have also seen an increase, the largest transactions were in Moscow. Metropolis shopping centre was acquired for around €900 mln by Morgan Stanley Real Estate Investing and AFI Development completed its acquisition of the remaining 50% in Aquamarine BC III, a project located close to the Kremlin. PropertyEU's latest investment briefing update in the CEE region takes place at CBRE's Henrietta House offices in London on the morning of 26 April. Click here for more information and to register.