CEE Investment Report 2019
„Thriving Metropolitan Cities”
The CEE Investment Report covers the key economic and business trends which influence the office markets in five countries: Poland, the Czech Republic, Slovakia, Hungary and Romania.
The 2019 edition of the report, titled “Thriving Metropolitan Cities”, concentrates on cities, referencing their growing importance in global economy. The publication is prepared by Colliers International, Dentons and Skanska.
The cities of CEE dominate the list of the fastest growing metropolitan areas in the European Union. Of the 20 best performing cities, 16 are in CEE. The first of those 20 is Dublin, which has become one of the most important destinations for investments and also benefits from tax-optimisation operations by international companies. But the second place is taken by Prague, which has seen very rapid growth in educated population in recent years. And Wroclaw has taken the final place on the podium, mainly thanks to its spectacular growth in productivity.
The average GDP per person employed in large CEE metropolises has increased from 65% of the average of the largest Western metropolises in 2004 to 85% today.
The economies of CEE have achieved their economic success largely due to their openness to world trade, facilitated by huge investments in transport infrastructure. And CEE metropolises are naturally their countries’ gateways to other regions. There is no better way to demonstrate the vibrancy of their international role than by presenting the activity at their airports, the true gateways of our times.
It is interesting to observe how air connections with Asia grow in CEE. The number of passengers on direct flights to East Asia grew by almost 400% over the last five years – from ca. 83,000 in 2013 to almost 390,000 in 2018.
Well-educated societies are not only more productive, but also more dynamic and flexible. Warsaw, Prague and Budapest have higher percentages of workers with higher education than Berlin and Rome and similar levels to those found in London and Paris. And the rate of growth in that percentage has been faster than in major Western metropolises. Investors in the sector of modern business services point to human capital as the single most important factor drawing their interest to the region.
In 2018 the growth difference between CEE and the Eurozone was the biggest since the financial crisis. Why was that possible? One explanation is the very good growth in consumption, which itself has been due to strong wage growth. Another explanation is the relocation of production from Western Europe to CEE, both in terms of industry and services. Most forecasts indicate that CEE can maintain high growth rates, albeit not as high as last year.
You can find more insights on CEE cities and the entire region in the newest CEE Investment Report: Thriving Metropolitan Cities.
Download the full report and learn more about investment opportunities in the CEE region!
Skanska Commercial Development Europe
