Landlords underwhelmed by emergency relief

This volume was significantly boosted by the app. EUR 1.3 bln acquisition of the Residomo portfolio in the Czech Republic by Heimstaden, but the turnover was still 68 pct higher than the figure for Q1 2019 (EUR 2.2 bln) and 28 pct more than Q1 2018 (EUR 2.9 bln).

Poland took the lion share of the Q1 volume (48 pct), followed by the Czech Republic (39 pct), Slovakia (5 pct), Romania (4 pct), Hungary (2 pct) and Bulgaria (2 pct).

Kevin Turpin, the research director for the CEE region at Colliers International, has commented: “Due to the various measures imposed to keep people safe and prevent the spread of the virus, including flights and border restrictions, we expect that the volumes in Q2 and Q3 will be significantly impacted as all parties involved in transaction processes are largely unable to meet or visit properties.”

According to the report, many property owners and managers are now assessing and managing any potential risks to their assets – and with only the possibility of short term tax relief, many might feel left out by government measures more focused on maintaining salaries and supporting businesses.

The initial results from an ongoing survey by Colliers reveals that investor appetite remains strong, while the volume of capital ready for deployment is also still there and could possibly even increase; but many investors are putting off decisions until the situation becomes clearer, particularly related to financing, pricing and the ability to physically view potential purchases.