. BULGARIA
The office market in Bulgaria’s capital Sofia registered moderate leasing activity during Q1 2024, driven by renewals and some relocations, according to Cushman & Wakefield’s latest MarketBeat report. Vacancy remains stable, with prime projects mostly fully occupied. Prime asking rents showing an increase at the start of the year. The overall volume of new modern retail openings in the quarter weakened significantly to about 20,000 sqm from 58,000 sqm in Q4 2023. Near 75% of this space was set up in retail parks. New retail park offerings are in the pipeline with occupier demand from local and international retailers, the report added.
. CROATIA
The share of real estate owned by mortgage in Croatia is the third lowest in the EU (6%). It is lower only in Romania (1%) and Bulgaria (2%). In Lithuania and Latvia 9% of real estate is owned by mortgage, in Slovenia 10%, in Poland and Hungary 12%, in Estonia and Slovakia 19%, Index.hr reported.
. CYPRUS
Cyprus’ property market experienced price growth across most categories in Q1 2024, according to the latest RICS Cyprus Property Price Index with KPMG in Cyprus. Looking at the data on a year-on-year comparison, the largest rise was evident in Apartments, followed by Houses, Warehouses and Offices. Retail exhibited a very marginal increase. The Index monitors the urban centres of Nicosia, Limassol, Larnaca, Paphos and Paralimni-Famagusta. The RICS Cyprus Property Price Index is based on methodology produced by the University of Reading in the UK.
. GREECE
Demand by Greeks for buying residential property dropped by 4.2% in Q1 2024 on an annual basis, while international interest grew by 11.8%, the latest survey by the Spitogatos.gr, the leading real estate website in Greece, reveals. According to the analysts, investment interest from abroad comes mostly from the UK, Germany and the US and is focused on the center of Athens, the peninsula of Halkidiki and the southern suburbs of the Attica region.
. MONTENEGRO
Residential Real Estate holds a dominant position in the market of Montenegro with a projected market volume of $17.15bn in 2024, according to Statista. The annual growth rate, known as the Compound Annual Growth Rate (CAGR), for the period 2024-2028, is estimated to be 5.41%. This growth trajectory is anticipated to result in a market volume of $27.83bn by the year 2028.
. ROMANIA
Romania’s real estate investment market saw transactions worth EUR202 million in Q1 2024, up 69% on an annual basis, according to Colliers’ “CEE Investment Scene Q1/2024” report. The retail sector was dominant locally in terms of trade activity, with around 66% of the total commercial real estate investment volume, followed by the hotel sector (around 21%). The report also noted that Bucharest had some of the highest investment returns in the region for office, industrial and retail sectors. The Romanian capital saw prime yields of 7.5% for the industrial and office sectors, while retail generated returns of 7.25%.
The CEE real estate outlook is strong, but external factors and high interest rates challenge liquidity, prompting sellers to reassess strategies and focus on ESG upgrades, Laurențiu Lazar, Managing Partner and Head of Investment at Colliers Romania, said in a press release accompanying the report.
. SERBIA
Since the beginning of 2024, there has been a reduced demand from foreign nationals for properties in the Serbian market, according to CityExpert, the first online real estate agency in Serbia. In 2022, the large influx of foreign nationals destabilized the local market due to mass purchases and rentals of apartments. The drastic increase in demand raised the market price of properties for rent by 50% higher compared to today. Now, a year and a half after the peak demand, there are fewer interested tenants, which leads to price stabilization.
