Office developments are picking-up with 230,000 sq m ongoing projects out of which 130,000 sq m has been commenced in Q1 2016. This is backed by strong demand and steadily declining vacancy rate, currently standing at 11.3%.
On the industrial sector, long-awaited speculative developments have kicked-off as vacancy reached only 8.6%, 5.9 pps lower than a year before.
Lack of pipeline and retailers’ unbroken expansion leads to rising rents, especially on high-street retail.
Investment volume in Q1 2016 has almost doubled (+89%, y-o-y) with EUR 208 million. Increasing international equity in pipeline anticipates further investment volume growth and yield compression, especially in retail and office sectors.