CEE INVESTMENT MARKET 2023

1.) The total investment declined by 60% YoY and reached €4.4 bil. in 2023. A decline was expected due to high financing costs and economic stagnation.

2.) Despite the contraction in volumes, prime yields saw a slight increase or remained stable, underscoring the ongoing appeal of prime commercial real estate in Central Europe.

3.) The highest proportion of capital went to the warehouse and retail sectors. This demonstrates their resilience, particularly in the logistics sector, spotlighting areas of growth potential.

4.) Office activity in the Czech Republic and Poland was subdued. This can be attributed to the mismatch of buyers' and sellers' expectations, as offices were undergoing correction.

5.) The prevailing mood can be defined as cautious optimism. Forward-looking indicators such as the Purchasing Managers Index point to a pick-up in activities through 2024. The inflation is returning to target in most European economies, setting the ground for interest rate cuts by both the ECB and local central banks.

The report was created with BNP Paribas Real Estate alliance partners.