Commercial real estate investment volumes in Central & Eastern Europe reached â¬10 billion in 2013, marking the second-strongest year since 2008, according to CBRE.
Investment volumes in 2013 increased 31 percent from the previous year, led by strong year-end results.
"2013 proved to be one of the most active years for commercial real estate investment in CEE since the financial crisis," Mike Atwell, head of CEE Capital Markets, CBRE, said in the report. "From a cross-border investor perspective, Poland continues to be the most active market in the region and high on most investors target lists."
The main drivers of CEE investment volumes were Russia and Poland, together representing 80 percent of the commercial property investment volumes.
Investment volumes in Russia reached â¬5.2 billion, increasing 40 percent from the previous year. In Poland, volumes reached â¬2.97 billion, exceeded expectations and resulting in a 10 percent yearly increase, CBRE reports.
With â¬1.02 billion invested in the Czech Republic, volumes increased 68 percent from the prior year.
A rising trend across CEE is the increasing commercial real estate investment activity in countries previously less active. In particular, Romania (â¬229m) and Hungary (â¬225m) recorded substantial gains in investment volumes last year.
Similar to previous years, overall investment volumes in CEE were led by large deals such as Silesia City Centre by Allianz / ECE, Galeria Kazimierz by Invesco, and Charter Hall portfolio by Tristan, a trend that will continue into 2014, according to CBRE.
"The austerity measures applied in recent years in CEE markets now provide a better outlook for the year to come," Jos Tromp, head of CEE Research & Consultancy, CBRE, said in the report. "While political unrest causes concern in the short-term in some more peripheral markets, on the whole sentiment has become much more positive with a wider range of investors believing in the contained value of these markets."