The real estate market in central and eastern Europe (CEE) has reached a new, more mature stage in its development. The low-hanging fruit of steadily falling yields and extreme shortages of space is mostly gone, especially in central Europe, which comprises the westernmost CEE countries. Nevertheless, we continue to see compelling opportunities to invest in the region at multiple points on the risk/return spectrum.

First, an income-oriented investment strategy focused on the strongest central European countries benefits from an attractive risk-adjusted yield spread versus western European markets, as well as greater potential for growth. In addition, a range of appealing value-added and opportunistic strategies derive from the CEE market’s increasing maturity. Heightened market segmentation, changing submarket dynamics and an increasingly “normal” pattern of market cyclicality point to opportunities for investors with keen market knowledge to develop and reposition asse