Spectator on facebook

Spectator on facebook

Investment in real estate is on the rise

While Slovakia is witnessing a rise in liquidity and transparency, it is still lagging behind its CEE neighbours concerning total commercial investment volume.

(Source: ProLogis)

In 2017, the commercial real estate market in Central and Eastern Europe has achieved some of its best results in the post-crisis period. The first half of the year fell just short of the highest first half-year regional investment volume achieved in 2007.

This positive development is pushing the region into a situation of lacking attractive op­portunities, with higher rates and lower yields. Nevertheless, the Slovak market remains attrac­tive for both local and institutional investors, according to real estate consultants.

The only current drawback is the smaller size of the market, says Rudolf Nemec, senior investment analyst in JLL Slovakia consulting company.

“Investors therefore automatically assume only few investment opportunities and little market liquidity,” Nemec told The Slovak Spectator. The greatest potential is still in the industrial property sector, mainly in the less concentrated localities of central and eastern Slovakia, said Ľubor Procházka, director of com­merce at CBRE Slovensko.

Read also:FAQ: Buying and selling a property in Slovakia

The Slovak commercial real estate market consists of office, retail, industrial, logistic and hotel buildings. Other types of investment property, such as hospitals, infrastructure and residential dwellings are not among buildings sold for profit in Slovakia.

While the country is witnessing a rise in liquidity and transparency, it is still lagging behind its CEE neighbours concerning total commercial investment volume. The whole CEE market recorded a total of €5.6 billion in invest­ments flowing into the CEE in the first half of 2017, but only €154 million, or 3 percent of CEE, came to Slovakia, the JLL’s CEE Invest­ment Market Pulse report stated.

Logistics is preferred

For now, the industrial and logistics market remains favourable for developers, according to analysts at Colliers International. The high degree of competition is pushing rents down de­spite the low rate fluctuating around 2.2 percent; the lowest in the last nine years.

While western Slovakia remains home to most of the industrial premises mainly thanks to its good highway connections, speculative projects are popping up in the regions of Senec, Nové Mesto nad Váhom and Žilina. The biggest industrial investors in Slovakia are Prologis, P3 Logistic Parks, CTP, Goodman, VGP, Immorent and Karimpol.

Read more about: Notable investors Expectations of growth Lack of transparency

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Topic: Real Estate


Top stories

NAKA makes a raid near Bratislava

The special police unit’s crackdown is connected with environmental criminality.

NAKA, illustrative stock photo

The courage to be free lives on

Memories from a Tour of Slovakia.

Football coach Kozák resigns from his position

The most successful and longest-working Slovak coach announced he was leaving the national team of his own free will.

Ján Kozák

How an unlikely community of neighbours was created

You do not make a community with barbecues, Dušan Martinčok claims, adding that it is rather heavy topics and issues that can bring people together.

Dušan Martinčok