Cushman & Wakefield reports that investor demand for prime retail assets in Central Europe is at its strongest since the market collapsed in 2008. Transactional activity in the first four months of 2011 has reinforced the dominance of the retail sector which accounted for virtually 50% of the previous year's investment volumes.
According to Cushman & Wakefield, investors are seeking increased exposure to select Central European economies, notably Poland and the Czech Republic, that look set to outperform many Western European markets in terms of GDP growth over the next three years.
"As consumer spending and retailer demand returns, prime retail assets in Central Europe will deliver performance through a combination of income growth and capital appreciation. Landlords will be able to focus to driving income and implementing asset management initiatives, rather than battling to maintain existing occupancy and rent levels, which have been the main priorities during the downturn," comments Charles Taylor, Partner at Cushman & Wakefield.
Those 'best of class' assets recently brought to the market in Central Europe have seen aggressive bidding from institutional buyers, whether the lot size is