FM newsroom – real estate market, Slovakia. The volume of investments in commercial real estate in Slovakia in 2023 was influenced by several factors. They were affected by the war in Ukraine, the higher energy prices followed by inflation, which led to an increase in interest rates and caused significant price increases. However, a total of 664 million euros were reinvested in the country.
“Within year-on-year comparisons, we have seen a significant decrease in commercial real estate investment in our country, by 41%. However, looking at the volume of investments over the last 5 years, it was an average year, despite the really difficult times,”- Ľubor Procházka, sales director of CBRE Slovakia told Officeinforent.sk.
Notable investments
Procházka also added that the year 2023 brought several interesting transactions to the Slovak market. Among the most significant investments in 2023, the professional mentioned the merger of the office real estate portfolio of Tatra Asset Management and Alto. Talking about individual real estate sales, Procházka pointed out the sale of the buildings Pribinova 19 and Landererova 12 adding that the sale of the industrial park in Trenčín was also among the important transactions. The sale of a portfolio of showrooms to an investor from the United States of America was worth mentioning as well.
Office real estate still dominates the market
For the second year in a row, office real estate was the most attractive sector, with a total share of up to 70 %. The second largest share was held by logistics real estate, whose share in the total volume of investment was at the level of 14%. The same percentage also belonged to retail real estate. The remaining 2% belongs to the hotel sector.
Local investors dominated the market
The significant share of investments in commercial real estate is dominated by Slovakian investors claiming up to 71 % share. Czech investors followed with a share of 21%. Slovak and Czech investors invested up to 661 million euros together. Almost 8% of the investment volume this time was achieved by investors from the United States of America.
