Investment into Central and Eastern European (CEE) countries (excluding Russia) increased by 25% in 2015 compared to 2014 ,reached €9.9 billion, according to the CBRE report. While year on year increases were expected, the overall performance exceeds forecasts and paints a picture of a solid rebound within all CEE countries.
Foreign investors continued to dominate the region, with US funds making large portfolio aquisitions, with an average volume size of € 160 million.
The US accounted for 30% of investment into the region in 2015, compared to 23% in 2014, with US funds making investments in all core-CEE countries, as well as Latvia. The re-entry of core funds like Morgan Stanley and Goldman Sachs indicate increasing investor confidence in CEE.
Germany was the second largest investor, accounting for 23% of all investment into the region last year, an increase from 12% in 2014. Germany’s presence can be attributed in part to the activity of Union Investment, who were the largest investor in the region in 2015.
Gijs Klomp, Head of CEE Investment Properties, CBRE commented:
“The strong investment volumes within the region are a result of US and German investors looking to take advantage of relatively high yields and strength of available stock on the market. In 2016 we expect this to continue as the stage is set for strong economic growth in the CEE, with relatively high yields compared to Western Europe and increasing interest from banks to finance in the region. In addition, the strong expansion seen in the retailers’ reported sales across the region will continue to keep retail investors interested. We also expect to see an increasingly diverse investor profile as Asian investors begin to increase their presence within the area”.