The View 7th edition

17

In the office sector, which can be considered the benchmark sector on the local market, the capital value profile showed interesting diverging trends in 2018. In 2016 the vast majority of investment turnover was priced between EUR 2,000-3,000 / sq m based on the Gross Lettable Area (GLA) of the building, and in 2017 this range narrowed to the higher end above EUR 2,500 / sq m GLA. In 2018, however, the trend showed a clear split into distinct segments. The previous appreciating

continued and resulted in most of the volume trading above EUR 3,000 / sq meter GLA, although this was largely driven by the Corvin transaction. However, the most liquid segment which produced the second highest turnover volume was between EUR 1,500- 2,000 / sq m GLA – clearly lower than in recent years. The figures suggest continued willingness to pay premium prices for high-quality assets, while a more value-add segment gained wider attention as investors seek further opportunities.

France Greece Other Singapore Austria Germany USA South Africa Hungary

Acquisition

Disposal

Sweden Israel

-800

-400

0

400

800

1200

EUR million

Acquisition vs. Disposal Volumes by Investor Nationality

Source: CBRE Research