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Real estate investment in core Central European markets hit €7.3 bn in 2014, a 41% increase on the previous 12 months, Cushman & Wakefield has reported.

Poland, the Czech Republic, Slovakia, Hungary and Romania enjoyed a very strong finish to the year; some €2.9 bn was transacted in the fourth quarter, approaching the record levels of 2006.

The full-year volume of €7.3 bn represents a 41% increase on the 2013 figure of €5.2 bn and approaches the record 2007 levels of €9.3 bn.

James Chapman, head of CE Capital Markets at Cushman & Wakefield, said: 'Central Europe has become an established part of any pan-European investment strategy. Warsaw has been the gateway for this but activity is clearly growing rapidly in secondary cities and across all CE countries. The region offers quality assets, large-scale platforms and robust occupational markets all driven by the fastest growing economies of any European region.'

Poland delivered the strongest Q4 performance with €1.26 bn transacted, reinforcing its dominance as the key destination for capital in the region. Overall, Poland attracted €3.13 bn in 2014, improving slightly on the 2013 figure. The office sector recorded the highest investment activity in Poland since 2006 while the industrial sector turned over the highest-ever transaction volume in the Polish industrial investment market.

The Czech Republic experienced a 96% increase on 2013 volumes with just under €2 bn transacted in 2014. Romania saw the highest annual increase of 141% and achieved €1.07 bn in 2014. The investment volume in Hungary was at €616 mln in 2014 (73% increase on the year). Slovakia recorded a 116% year-on-year increase and reached €504 mln in 2014.

The largest portfolio transaction in Central Europe in 2014 was the sale of the VGP portfolio of 11 logistics parks in the Czech Republic to PointPark Properties (P3) for €523 mln. The largest single transaction was the acquisition of the Rondo 1 office building in Warsaw by Deutsche Asset & Wealth Management for €295 mln.