Investment in Central and Eastern Europe returns to Pre-Pandemic levels in the first quarter of 2022

Volumes in Central and Eastern Europe at the end of 2022 may exceed 12 billion euros, but the uncertainty caused by the war in Ukraine and the oncoming economic winds may affect this forecast, reveals the latest report by Colliers.

"Individually, most countries are still lagging behind before the pandemic. Only Poland grew by 23% year on year and accounted for 56% of total investment in the first quarter of 2022. After a slow start last year, the Czech Republic had a good first quarter in 2022, the signals for the rest of the year are mixed, with a number of challenges but also opportunities, "explained Kevin Turpin, Regional Director of Capital Markets, CEE at Colliers.

Return on first-class assets for Q1 2022 and 12-month forecast

"We are registering a weak movement in premium property yields for most markets in the region, partly due to the continuing lack of data on transactions to support further change. Our current forecast also suggests that in the short term the additional contraction in profitability will be marginal or non-existent. Especially given that we expect the cost of debt and other financial instruments to increase, which will increase the pressure on margins. The combined impact of the pandemic and the war in Ukraine has stimulated inflationary pressures and negative economic attitudes," added Kevin Turpin.

Georgi Kirov, Partner, Director of "Capital Markets" for Bulgaria confirms: "The levels of return in Bulgaria remain at the levels of the end of 2021, namely for office space - 7.75%, retail space - 7.75%, industrial space 8.5 % and living space - 5%. In the short term, the levels of profitability in office and industrial space are projected to shrink further, while in retail...