Q1 2020 CEE Investment Scene

We are pleased to bring you the Q1 2020 CEE Investment Scene as a part of the Special Insight Series | Covid-19 Opportunities & Challenges in Extraordinary Times which takes a look at the first quarter investment activity in 2020 by country and sector, plus some of the themes that we see emerging. 

In summary, CEE transaction volumes were very healthy in Q1 at ca. €3.9 billion, although were supported by a few extraordinary deals, with Poland and the Czech Republic accounting for ca. 86% of the total volume. Office and Logistics recorded similar shares of activity with 27% and 26% respectively. We do expect a slowdown in overall activity from Q2 onwards as many investors are holding off on decisions for a number of weeks initially until the situation becomes clearer, particularly in regard to financing, pricing and the ability to physically view opportunities.

Due to the widespread impact on the economy, property owners from all sectors are looking very carefully at their exposure to risk, especially in terms of tenant covenants and of course government measures affecting rental payments as a result of the pandemic on businesses.