The new episode of our video overview describes the commercial real estate markets in Central Europe in 2023 and 2024, based on our recent study CEE Investment Market Outlook 2024. These are the highlights:
- Investment volume decline: The investment volume in the region dropped by 55% in 2023, reaching the lowest level in 10 years, due to weak economic performance and low investor confidence. Poland experienced the largest decline of 68%, while the Czech Republic was the most resilient with a 25% decrease.
- Market structure change: The market structure changed significantly in 2023, with a more balanced share of countries and sectors, a higher proportion of local and alternative investors, and a shift in prime yields across property types.
- Positive outlook for 2024: Our positive outlook for 2024 is based on the expected recovery of GDP growth, inflation, consumer demand, exports, and interest rates in the region, which will lead to a gradual increase in investment activity. The region is expected to benefit from EU funds, private capital inflows, re-shoring trends, and lower interest rates, and the investment volumes could grow by 10 to 15% annually in the next few years in Central Europe.
View the commented video roundup of the market situation.
