The volume of investments in commercial real estate in Slovakia in 2023 was influenced by several factors. They were affected not only by the start of the war in Ukraine in 2022, but also by higher energy prices related to it. This was followed by rising inflation, which led to an increase in interest rates and caused significant price increases last year. However, according to the global real estate consulting company CBRE, a total of 664 million euros were reinvested in Slovakia.
"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," describes Ľubor Procházka, sales director of CBRE Slovakia. He also added that the year 2023 brought several interesting transactions to our market.
"Among the most significant investments in 2023 is the merger of the office real estate portfolio of Tatra Asset Management and Alto. From the point of view of individual real estate sales, it is the sale of the buildings Pribinova 19 and Landererova 12. The sale of the industrial park in Trenčín is definitely among the important transactions. From the point of view of the type of real estate, we should highlight, for example, the sale of a portfolio of showrooms, which were the subject of sale to an investor from the United States of America, while the latter invested in Slovakia for the first time," Procházka continues.
OFFICE REAL ESTATE CONTINUES TO DOMINATE, A STRONG SHARE OF INVESTMENTS CAME FROM OUR DOMESTIC INVESTORS
For the second year in a row, office real estate was the most attractive sector, with a total share of up to 70 percent. 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% belong to the hotel sector.
The outlook on the origin of investments in commercial real estate in our country is also positive. Slovakian investors dominate the significant share. They claimed up to 71 percent 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.