Croatia's commercial real estate deals up 40% to 700 mln euro in '21 - Colliers
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Loading... - Joanna Bailey
- 01 Mar 2022
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Commercial real estate deals in Croatia totalled 700 million euro ($793 million) in 2021, an annual growth of 40%, real estate company Colliers said.
“Volumes, though robust, failed to underscore the true scope of demand, as investor interest is meeting limited supply,” the company said in its investment market overview report for Croatia for 2021 released on Thursday. “Supported by V-shape economic recovery, strong commercial real estate market fundamentals and inflation scare, we are seeing high investor demand and continued downward pressure on yields,” it added.
Transaction activity was strongest in Dalmatia with some 40% of total volume, while Zagreb accounted for 25% of the total transaction volume.
Office and logistics assets are still the primary focus for many investors, but most of transaction volume was recorded in the hotel and retail sectors where supply was higher.
The retail sector was especially vibrant in the second half of the year with several portfolio and single-asset deals.
The quick recovery of Croatian tourism was reflected in high demand for hotels as the achieved prices of hotel assets remained similar to pre-Covid levels, showing disconnect to stock market prices and proving strong investor confidence in the hotel sector, according to the report.
Foreign capital accounted for 75% of the total transaction volume.
The largest deal in 2021 was the acquisition of Sunce Hoteli [ZSE: SUKC] by UAE-based private RE investment and development company, Eagle Hills, Colliers said.
Eagle Hills bought 69.71% of Hoteli Sunce from Croatian businessman Jako Andabak and his family for 101 million euro in March. Read More…
