In the first half of 2018, the total amount of investments in commercial real estate in Eastern Europe amounted to 7 billion euros, which is 24% less than in the same period last year. Of this volume, more than half was accounted for by Poland (3.7 billion euros), which retains the status of the largest investment market in the region. In second and third places, respectively, Czech Republic (675 million euros) and Romania (531 million euros). On the fourth – Russia, where in the first half of the year investments amounted to 495 million euros, of which more than 50% accounted for the office segment (260 million euros).

In the Eastern European region, investments are distributed relatively evenly between domestic, intraregional (European) and external (from America, Asia, Africa, etc.). In 2018, the share of non-European investments increased from 33% to 49%. In the long term, it is external investments that show the greatest growth as this market opens up to new players. Russia is still dominated by domestic investors. This situation has developed since 2009, although it was European investors who formed the market in 2004–2007.

Comments Denis Sokolov, Partner, Head of the Research Department for Eastern Europe, Cushman & Wakefield: The Russian investment market has demonstrated a slow start. We have revised the previous investment forecast of 4.5 billion euros. Taking into account that less than 500 million euros worth of investment deals were concluded in the first half of the year, and a significant number of large transactions are under preparation, we believe that by the end of the year Russia will reach the level of 4 billion euros.We believe that the share of foreign investments in Russia in the coming years will not exceed 20-25% until the market opens up to foreign capital again.

Source: Cushman & Wakefield

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