Dentons has co-authored the CEE Investment Report 2017: From Phenomenon to Fundamentals - a short analysis of the region’s potential as an investment location, broken down by selected countries: Poland, the Czech Republic, Romania, Hungary and Slovakia.
The report demonstrates how the countries of Central and Eastern Europe are gradually moving closer to becoming developed economies. This process is particularly striking when looking at trends in modern business services and the office market. Since the turn of the millennium, these two sectors have witnessed the largest investment and growth, and now form a strong fundamental in CEE economies.
“CEE continues to attract investment thanks to the existence here of a unique combination of legal, economic and market factors, such as legal safety in conducting transactions, the attractiveness of properties that present profitable yields and long-term profits, and qualified workers, a cheaper workforce and lower rents (compared to Western Europe).This is why large companies from the business services sector are increasingly locating their operations in this region and financial investors are pushing up demand for real estate,” said Paweł Dębowski, Chairman of the European Real Estate Group at Dentons.
The authors of the report reveal that investors spent approx. €5.6 billion on commercial real estate in CEE in H1 2017, close to the 2007 record of €5.7 billion. JLL’s experts expect another record level at the end of the year. Investors could spend as much as €13 billion, especially as CEE is attracting financial institutions from Germany and the United States and funds from parts of the world as distant as Asia and Africa.
For the second year in a row, this guide has been compiled by Skanska, JLL and Dentons with the support of the Association of Business Service Leaders in Poland (ABSL) and Fitch Ratings.
To download the CEE Investment Report 2017: From Phenomenon to Fundamentals.