H1 2020 | Slovenia 1 Research and Forecast Report | Colliers International

AND FORECAST REPORT AND

SLOVENIA

H1 | 2020 | H1 RESEARCH OVERVIEW MARKET

H1 2020 | Slovenia 2

Research and Forecast Report | Colliers International C

ONTENT About Colliers About Market Residential Investment HTL Market and Industrial Market Retail Market Office Overview Economic S

ummary

Market

Logistics Market Logistics

18 16 14 12 10 8 6 4 3

H1 2020 | Slovenia 3 Research and Forecast Report | Colliers International

, - - With least lower lower

.

logistics income

economic economic the prices prices the / producing producing

- , increase in an term term leases. - an an igh occupancy igh currently to partly cushion cushion partly to and and thus

to to remain stable. long

, industrial demand is expected expected is demand

the the

and and the the

.

core properties:

. . As investor employment employment and household the underlying performance of d to increase on the ground of

Forecast

in in sectors

ew ew developments are announced in all prominent tenants Higher activity is expected would when be there more clarity spread in pricing expectations sellersbuyers and between Yields for properties are expected prime Pricing will income be changes most affected by the properties. the stabilize to expected are prices Residential projects However, comemarket. as to new for properties in prime locations are expecte strong demand. Market The large stimulus package announced by expected is authorities the losses to way the incomes pave and rebound 2021. in N CRE developed sector, sector is expected to see developments in the coming years proven resilience and rising COVID the of winner big demand, the become could it 19 crises. strongest The to continue for h with properties generating

- a H1 H1 the the the the the in based based At the -

strongly % share pandemic ransaction ransaction

t . . Most of ut at a slower a slower at ut

nding. nding. Grocery have , b , with with 73

,

a a number of projects sector sector was the most

hit hit hardest due to investment investment increase

s economy, leading to a ' are

to to + the the was was 19 pandemic and related

- office Total CRE investment volume rends although although with lower recorded

relaxation relaxation of measures, the

T

,

sector was looking positive at the the at positive looking was sector Slovenia year year contraction in GDP and all

- began began The The sector the the , 60% less than in the same period

on - abled abled investors to perform property

Hotel closure of borders and travel restrictions. With activity pace. Logistics sector is still the least developed real estate sector in Slovenia projects coming to market are for owner occupiers. The office The start of 2020, and the even or market shock sharp short, should a out ride to be able downturn.a longer economic centres shopping enclosed and street High were the most exposed to a downturn in discretionary consumer spe car convenient, more the and stores retail park models proved defensive. to be more in H1 2020 amounted million to approx. €50 2019. popular among investors in total volume. Apartment prices increasing are volume. There still slightly currently under construction and in pipeline (especially in Ljubljana), dropped. permits building issued of number but The The COVID containment measures affected year main macroeconomic indicators. same time, volume of commercial real estate 2020 uncertainties decreased and travel restrictions, which dis amid inspections. Recent

UMMARY

S H1 2020 | Slovenia 4

Research and Forecast Report | Colliers International ECONOMIC OVERVIEW

for earnings Maygross 2019 c 10.8% by terms terms by 3.2%, but they were higher in real than 1,892 EUR to amounted earnings gross Average footwear. and clothing of prices the in drop 10.3% the of consequence the mainly is −0.1%, which was deflation Monthly 0.8%. by by average 2.1%. Goods prices went on down on average up went prices Service In July work and social activities.health were year. last period same the to compared 0.4% by increased to amounted of 2020 quarter first the in employment Total 2019, of quarter respectively first the to compared 2.5% by imports and 1.6% by exports decreased while 3.1%, by In Q1 2020 is confinement measures, second by 2019. of quarter first the over 2.3% decreased (GDP) product domestic trade. measures been As several years The Summary

expected

in

COVID gross earnings for April 2020, in real in 2020, April for earnings gross

hired strongly 2020, countries, other n h frt ure o 2020 of quarter first the In

quarter

and the collapse in international in collapse the and ,

Slovenia - Credit rating of(as July 2020)

to - domestic expenditure declined

19 annu n osrcin n human and construction in

of

be

healthy

fetd y containment by affected pandemic

Outlook

Newly employed persons employed Newly

Agency

Rating even was al inflation

prx 10 ilo, it million, 1.0 approx. mae t average to ompared

steeper

oe affected more growth the the . They were lower were They .

o M for decline put . stood . economy

.

in

an

Slovenia y 2020 ay

at at 0.3%.

, in GDP end

As

stable gross

S&P

AA-

has the

by to .

6 t aon 7% n 00 Oc the to Once start can debt public recovers, economy 2020. in 77% around to 66% publi the debt turn, In 2020. in deficit fiscal a into Slovenia push will crisis coronavirus N and normallifted resume. daily activities expected to improve in H2 as measures are de Market rebound by around and 6% 2020, in drop GDP 7% states Commission Oxford to Economics. according 2021, is in rebound expected solid the a to impact, due coronavirus 2020 in recession sharp a Although, the economy is set to plunge into Forecast restrictions return. restrictions a ifoutbr second especially downside, the to remain risks to the borders, reopened partially return has tourism government the while and However, normality. trade as 2021 global in 9.0% by rebounding year, before this 8.1% decline to expected are Economics Oxford to According Commission y forecast consumer Overall, by 2025. EU the under stabili - csay icl epne o the to response fiscal ecessary o - y in 2021, according to to according 2021, in y - to z ad rp eo te 0 cap 60% the below drop and e - GDP ratio is expected to rise from rise to expected is ratio GDP ed at

positive

Mood'y ad wih el nH 22, is 2020, H1 in fell which mand,

Baa1 Source:Trading Economics

.

eak appears and strict travel strict and appears eak 0.2% y ' oeat rm European from Forecast Got adSaiiy Pact Stability and Growth s

- o - price y in

2020 and 1.1% in in 2021.

the

stable

Fitch nlto is inflation

A European European

exports

c H1 2020 | Slovenia 5 Research and Forecast Report | Colliers International

Number of permits of Number 2.000 1.000 0 8.000 7.000 6.000 5.000 4.000 3.000 2023F 2023F 2020 (H1) 2020 2020F 2020F 2019 Number of permits of Number 2018 2021F 2021F Unemployment rate Unemployment 2017 2020F Floor area H2 area Floor 2020F GDP growth rate growth GDP 2016 2015

2019 2019 2014 Floor area H1 area Floor | Figure| 3: SURS 2018

Government balance, % GDP balance,% of Government consumption Private 2013 2018

1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 2,0 0,0 m²) miilion (in area Floor 8,0 6,0 4,0 2,0 -2,0 -4,0 -6,0 -8,0 Economics 12,0 10,0 -10,0 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% -4,0% -6,0% -8,0%

Oxford

| Figure | 2:

ISSUED

Economics

Oxford

) PERMITS

: : : 3 2 1 HISTORICAL AND Sources: Figure 1: BUILDING (NUMBER FLOOR AND AREA) IN SLOVENIA Figure Figure MAIN MAIN ECONOMIC INDICATORS (HISTORICAL AND FORECAST) Figure Figure ( FORECAST Figure Figure ECONOMIC GROWTH, H1 2020 | Slovenia 6

Research and Forecast Report | Colliers International OFFICE MARKET

downsizing office decre could working work policies. fr work with continue to decided companies experiencing After lockdownthe most office b have as implemented companies many well experts, health as lockdown, and government the by recommendations the during to Due market. office brought suddenly with of implementation T Demand are the who satisfy for officelooking modern companies not of does requirements is stock and office outdated current the of majority number of high consists and m² million companies. Total domestic and international serve As September 2020. m² of office space, completion i construction. Dunajska market. Ljubljana, the centre of schemes 2020, H1 In Supply e ped f Covid of spread he the

a haqatr fr ot of most for headquarters as s a office stock in Ljubljana is around 1 around is Ljubljana in stock office Ljubljana office stockbyLjubljana age Older than10 years Older Up to 5 years 5 old to Up the the aia an capital 5 eea lockdown general spa

s A – were O .

tet s n ae tg of stage late in is Street cancellation of public transport public of cancellation 10 years 10 years old e which ce, uildings remained open

. The b

On home from work alr fie ulig on building office maller -

no quality office premises. The te te hand other the n brought to to brought Source:Colliers

the

lret iy Ljubljana city, largest d

hc to shock

uilding will feature 2,000 new oiie eut, many results, positive rvnie measures preventive

s te ead for demand the ase one one hand, the remote the m home om ,

premises fully or or fully significant

f ny small a only of Slovenian Slovenian office -

ol initiate could

9 n the and 19 the the n mid in s However, . International

planned in Slovenian akt in market remote / partially . 91% -

8% 1%

during March ,

office

the

,

h pie edie otl rn in rent monthly headline prime The properties the (e.g. firms distressed most than the on dependent resilient more lif (IT, be to proved bodies) government science, tenants strong with Properties earlier and periods negotiating procedures during the lockdown have been implemented that Companies Rents teams smaller 12 months least at to up for distancing physical Some space. office in increase should workers between distance  Pipeline 4.0%. of in Class A buildings rate vacancy supply, new of lack to Due ratelow pipeline. and limited vacancy s remain average will Ljubljana in buildings A Class the for rents that expect We premises. €12.0/m²/month Class and €12.0 between s is stock competitive to range €14.0 the in currently is Ljubljana

space. m² 6,000 circa feature also will residential the to district Tivoli in development Palais is dev under building Currently offices, which offices, ,

airlines, tour/ airlines, peie ad ewe €6.0 between and premises A

ih hf work shift with a

al i te et eid u to due period next the in table Completion is

nd nd Vacancy Rate

,

1./² Av €17.0/m². ny e multi new only etl netvs rent incentives, rental Schellenburg in . Source:schellenburg

the

increases o te ls B n C and B class the for

events operators). component, the project the component,

Ljubljana office market market office Ljubljana companies will require require will companies remained in elopment in Ljubljana Ljubljana in elopment

otata breaks. contractual 1./²mnh for €14.0/m²/month expected 2022. in al ad stands and table aig lc with place taking

a , rg rn in rent erage th - e demand for for demand e tenant office office tenant remote wor remote t

. e average he In mixed the the -

living.com

of office of addition region

- from - free and use use

e a k

H1 2020 | Slovenia 7 Research and Forecast Report | Colliers International

Number of buildings of Number

0 60 50 40 30 20 10 H1 2020 H1

/m² 5 /m² /m²

2019 %

17.0/m² 14.0/m² 7.5 6.5/m² 7.0 11. H1 2020 H1

12.0/m²

– – – – – – – 4.0 .0 €7.0 €7.0 €6.0 €6.5 €6 2018 €14.0 €14.0 €12.0 €10.5

2019 Number of buildings of Number

AVERAGE MONTHLY RENT MONTHLY AVERAGE 2017 2018 Figure 6:SURS 2016

2015 2017 for Class for Class A

LJUBLJANA OFFICE MARKET OFFICE LJUBLJANA

Rate 2014

CITY Celje Kranj Floor area of building [m²] of building area Floor Koper Maribor Prime Monthly Rent Monthly Prime 2016 Class A Monthly Rent Rent Monthly Class A Rent Monthly B Class rs International on Trgoskop | 2013 Vacancy 0 50 Average Average 250 200 150 100 450 400 350 300 Average Average Average 0 0 m²

Average Average Floor area m² (in Hundreds) (in m² area Floor Figure| 5:Collie

50.000 m² 50.000

300.000 m² 300.000 m² 250.000 m² 200.000 m² 150.000 m² 100.000

UP - and Trgoskop

H1 2020 SLOVENIA

: : : 6 5 4 Sources: Figure 4:Colliers International

ISSUED ISSUED PERMITS FOR OFFICE BUILDINGS IN Figure Figure LJUBLJANA OFFICE TAKE Figure Figure Figure Figure KEY OFFICE FIGURES H1 2020 | Slovenia 8

Research and Forecast Report | Colliers International RETAIL

MARKET by 1,600 accompanied parking spaces area leasable of m² 32,000 on providers contains centre shopping modern The district, Ljubljana. Šiška in 2020 March in opened significant whole. a as Slovenia only not for point shopping focal a is Ljubljana ' further performance stores mortar and brick the hurt might to expected been changing rapidly and online sales are Coronavirus to uncertainties. due up stocked people during increase strong Grocery 2019. from June higher turnover ( was in registered April ( sales retail in decline annual steepest The April during furniture and stores). goods technical earlier materials, (construction opened shops 18 May to 2020 were Slovenia. the to according year R Supply - 14.6 etail sa etail -

on the closed for business from March 16 March from business for closed %

hn n a 22, u dw 5.0% down but 2020, May in than - de o the to due )

er n h frt af f 2020 of half first the in year 80 80 shops, restaurants and service les in Slovenia declined by 9.6% by declined Slovenia in les n eal rd i Jn w June in trade retail in

ie Lulaa region Ljubljana wider a Most

stores nd Demand pnn was opening nrae n h ftr, which future, the in increase

C non '

nue bhvor has behaviour onsumer th Source:

, turnovers - . essential goods shops goods essential 2020, although some some although 2020,

ttsia Ofc of Office Statistical The l The pandemic - 22.7 the skyscrapercity.com

atest

% A lockdown as as lockdown recorded recorded ea which leja, ) and March

, Volume .

and most and as 3.0% 3.0% as u also but

.

th a , , ,

n ooa tet n Ljubljana rents in Street Čopova In micro on Rents and stable remain €16.0/m². Slovenia shopping The period landlords their from reliefs rent partially or fully for asked tenants the restrictions and lockdown the to Due a Rents  constructionunder Projects 90% rate. occupancy above average on in have centres Ljubljana Shopping rate; centres. between vacancy the therefore, in role important si and Location Slovenia. in in centres and10.0% shopping parks retail below stands and stable is rate Vacancy €

120 end of 2020. end completion the and underway currently is construction The €100m. to close is investment Estimated 84,000 34,000 IKEA S of store First

with /m² for smaller shops. weighted weighted - average around €60/ around average location and the size of the premise. the of size the and location their stores were closed is is under co the are are stable

m² store store m² nd vrg rent Average the

m² plot in BTC, Ljubljana. Ljubljana. BTC, in plot m² centres h vcny ae a vary can rate vacancy the from the government, the from strongest turnovers strongest

Vacancy Rate n al o pie locations prime on malls in

ih tet eed n the on depend street high average

nstruction in Slovenia.

wedish and rangeand from n rti parks retail and s being is

s xetd y the by expected is ae xetd to expected are s monthly

m²

furniture giant giant furniture

Source: h imposed the for and ul o an on built . e ly an play ze

. ,

the the go up to up go some of of some et in rents monthly

€7.0 delo.si

time

to to in A

H1 2020 | Slovenia 9 Research and Forecast Report | Colliers International

Number of buildings of Number

0 120 100 80 60 40 20

H1 2020 H1

/month

% /m²

9.0/m² 11.0/m² .0 H1 2020 H1

10.5/m² 10.0/m²

2019 – – 5.0 ,000 m² ,000 – – 1

<10 – 304 €8.5 €8.5 €9.5 €9.5 €8.5 .0 €10.0 €10.0

12 € 2019 Number of buildings of Number 2018 AVERAGE MONTHLY RENT MONTHLY AVERAGE

2017

2018 rate

Rent Stock 2016

Vacancy Monthly Monthly 2017 modern modern

LJUBLJANA RETAIL MARKET RETAIL LJUBLJANA

: SURS

2015

CITY Celje Kranj Koper Maribor Floor area of building [m²] of building area Floor 2016 2014 Shopping Centre Shopping Centre 0 500 400 300 200 100 900 800 700 600 1.000

Total Shopping Centre Centre Shopping Total

Average Average Average Shopping Centre Shopping Centre Average 2013 Hundreds) (in m² area Floor 90

140 130 120 110 100

Trgoskop Figure| 8:SURS Figure| 9 H1 2020 RETAIL International and OF MOTOR

FIGURES

: : : 9 8 7

Sources: Figure 7:Colliers

WHOLESALE RETAIL AND TRADE BUILDINGS IN SLOVENIA Figure Figure ISSUED PERMITS FOR MOTORCYCLES) IN SLOVENIA, SEASONALLY ADJUSTED DATA (Ø2015 = 100) VOLUME INDICES OF TRADE (EXCEPT VEHICLES AND Figure Figure Figure Figure KEY RETAIL H1 2020 | Slovenia 10

Research and Forecast Report | Colliers International INDUSTRIAL A owner m The rent will pressure con downward the while stable to remain expected are stock modern in Rents stock €4 smalle in Rents quality. and size location, exact €6.0 and €4.5 Ljubljana, a industrial for rents of Majority stable. remained rents Average a Rents developments e of further and technology and trends occupied. properties modern stock a is There Mesto. Maribor, Ljubljana, are and development activity. investment of terms in potential remains Slovenia As is which driving drive are to c likely Moreover, are and needs positive Distribution fields. product the in grocery, companies from requirements T by 12.6% decreased over the period same the 2019. of period same the to compared 10.1% by decreased production industrial i chains supply As Supply here here has been an increase in demand and . 0 the a - /m²/month.

commerce

result of of result is in -

cte ae ewe € between are cities r occupied properties occupied least developed jrt of ajority

showing ofshowing ano signs slowdown. , omnichannel and pharma related pharma and omnichannel the

and Demand In order to keep in line wit nd nd Vacancy Rate Koper the the ND LOGISTICS MARKETND LOGISTICS ags i hanges rapid are sector sector

because shortage region region 5.0 of disruption in production and production in disruption in the years coming in

, industrial

/m²/month H1 n

V tinue in tinue older properties. increase an expect we and the

cny rate acancy outdated rwh i growth troe i industry in turnover ,

Main industri Main with d oitc sae in space logistics nd cnue patterns consumer n

e ppln wl be will pipeline new Kranj

00 te au of value the 2020,

real estate sector in most most of the

/ of oe ad Novo and Koper

the the . %. %. oitc sector logistics

e n

range between range

eedn on depending viaiiy of availability n owner and H1 ot upside most

- commerce, n modern in al centres al

2019. 2.0

. h h global existing growth.

gro

and wth

In in

-

 constructionunder Projects   Pipeline

expected expected Brnik to c The complex in Brnik, just off Ljubljana airport its the of of segment production construction the up wrapping for Mehanizmi, Iskra Company m². m². have will and Slovenia for centre distribution as serve BTC in built be will centre logistics Mercator m². 125,000 is expected to Construction in start 2021 total will centre logistic ov the thus buildings, additional two build also will Development Asset Go centre. be of will developer Development Asset Go company estate real Austrian Sežana. in in investing is Tedi rl wrhue pc ic. Tedi incl. space warehouse erall automotive and automotive

ompany a Ljubljana . 20, . surface of approximately of surface

to to be completed 000 m² m² 000 a

also . the eta lgsis and logistics central h n The

plans to move offices move to plans medical industries, medical a 200 ² logistics m² 62,000 production new logistic centre logistic new w rpry will property ew Source: Source: in H2in 2020 the € 30 million million 30

krog.sta.si dnevnik.si facility facility supplier supplier 88,000 88,000

. the

is is ' s .

H1 2020 | Slovenia

11 Research and Forecast Report | Colliers International

Number of buildings of Number

100 0 600 500 400 300 200 H1 2020 H1

/m² /m² /m² 0 % . .0/m² .0 .0/m²

7.5/m² 4 7 3.0 3.0/m² 5 6.0/m² 5 .0

H1 2020 H1 2019 5 – – – – – – – – < €5.0 €5.0 €1.5 €5.0 €2.0 €2.0 €4.0 €5.0 €4.0 2018 2019 Number of buildings of Number AVERAGE MONTHLY RENT MONTHLY AVERAGE 2017

2018

2016

2017

INDUSTRIAL AND LOGISTICS MARKET LOGISTICS AND INDUSTRIAL

2015 CITY Celje Kranj Koper in modern in stock modern Maribor

Ljubljana Floor area of building [m²] of building area Floor Novo Mesto Novo 2016 Secondary Monthly Rent Monthly Secondary SLOVENIA Prime Headline Monthly Rent Monthly Prime Headline 2014 Vacancy 0 Average Average 500

3.000 2.500 2.000 1.500 1.000 4.500 4.000 3.500 Average Average 2013 Hundreds) (in m² area Floor | Figure | 11:SURS Figure| 12:SURS

90 80

140 130 120 110 100

H1 2020

International and Trgoskop USTRIAL : Colliers: 0

: : : USTRIAL AND 12 11 10 Sources: Figure 1

WAREHOUSES IN SLOVENIA Figure Figure ISSUED PERMITS FOR INDUSTRIAL BUILDINGS AND PRODUCTION IN SLOVENIA, SEASONALLY ADJUSTED (Ø2015DATA = 100) Figure Figure INDICES OF IND LOGISTICS FIGURES Figure Figure KEY IND H1 2020 | Slovenia 12

Research and Forecast Report | Colliers International HTL MARKET

eoe soe ta Lulaa n the and continental part Ljubljana than sooner recover to expected are tourism, outdoor on rely which destinations, coastal and Portorož in primarily situation, thuspandemic 2019), on depends in period next the in tourism overnights 70% (over dependent is Slovenia Forecast developers. domestic activity development into expand to Slovenia looking operators and i strong hotel announced developments. by alleviated be should This offering. of lacks Ljubljana car to resilient less Ljub Thus,byair. the city to coming two roughly with Ljubljana, in nights hotel all of 95% over for account guests respectively. in Slovenia, recorded overnights total of 11% and arrivals total In H1 2020 Sloveni the to according (60% stays overnight million 2.5 and 2019) in (64% arrivals June of end the to January of beginning the From rates and all in resulted borders which of implementation closure economy, May and April in especially and March in recorded was start good a had of Slovenia months two first y (0.5% overnights million 15.8 y (5.0% arrivals million 6.2 with 2019 In S upply - based destinations. .

less high

a. , trs fo itrainl brands international from nterest

2020, . Slovenia had another record year record another had Slovenia

has

& Demand& t - , han in the same period in 2019), ult prope quality

Ljubljana accounted for 14% of

However a less

orss eeae 921,000 generated tourists

2020 developed hotel market but of the country. of the f rvnie measures preventive of

than in the same period same the in than activity downturn than downturn activity

ttsia Ofc of Office Statistical -

due to closedown of of closedown to due ms o the of most ,

ie o occupancy low time

on still still 00 touri 2020,

te ad diversity and rties

A . oeg tourist foreign oe from comes

- s o ap drop harp There is a - - y). o the the Foreign - ljana isljana ) and y) m in sm

- In the In thirds thirds EU. the s ,

  constructionunder Projects 

twr oe, hc i crety under currently is which hotel, Atower Celje Zlatarne opening is for 2021. the June scheduled Šumi cost is around €20 withhotel 151 rooms. include also will It Square in Ljubljana Mixed end of 2020 or of or 2020 end beginning 2021. of for planned is completion and million €7 centre. Investment is estimated at around wellness and pools swimming outdoor five rooms, hotel going through mid in began Lipica in Maestoso on Works at estimated €40 million. area. congress a and rooms 300 with segment upscale in be will hotel information, public the to According Ljubljana. in construction e kat ... s f pig 2020, spring of As d.o.o. kvart jev - use building Šumi near Congress Congress near Šumi building use oges al, nor and indoor halls, congress the Source: is is

eoain f Hotel of renovation m oa ivsmn is investment Total the is a a illion Source:

renovation has 139 under construction. oen 4 modern Hotel development skyscrapercity.com investor in new new in investor

. The i Source: tekdeeps.com nvestor is - - star city city star

May. 4* May.4*

elea.si the

H1 2020 | Slovenia

13 Research and Forecast Report | Colliers International

Number of buildings of Number 100% 40 20 0 120 100 80 60 H1 2020 2019 36,1% H1 2020 H1 80% 44,5% 2018 2017 2019 Number of buildings of Number 60% 8,0% 2016 Overnights H2 Overnights 16,7% 2015 2018 40% 2014 2017 55,9% Overnights H1 Overnights 2013 20% 38,8% 2012 Camping sites Camping establishments accommodation Other Hotels and similar accommodation establishments accommodation similar and Hotels Floor area of building [m²] of building area Floor 2016 2011 0%

0 2010 600 500 400 300 200 100 700 Beds

9 6 3 0

18 15 12 Floor area m² (in Hundreds) (in m² area Floor OVERNIGHTS (IN MILLIONS) (IN OVERNIGHTS Overnights

SHARE

SURS Figure| 14: SURS Figure | 15: SURS

: : : 15 14 13 OVERNIGHTS IN SLOVENIA

Sources: Figure 13: ISSUED ISSUED PERMITS FOR HOTEL BUILDINGS IN SLOVENIA Figure Figure

IN IN H1 2020 ACCOMODATION TYPE BY SHARE IN BEDS AND Figure Figure OVERNIGHTS IN SLOVENIA Figure Figure TOURIST ARRIVALS AND H1 2020 | Slovenia 14

Research and Forecast Report | Colliers International INVESTMENT

 Top Transactions occupancyetc.). rates rates, rental (e.g. properties the most be will estate real commercial of Pricing n are properties logistics for 7.50% and income office, and retail prime in are properties for Yields ( sectors and assets defensive towards turn rele be to greater clarity, pent situation the Once strong. stays appetite investor that ensure will capital deploy to pressure The in strongest Geog €50 million with exceeded 2020 H1 in volume Investment inspections. as well travel as the recession, global and upcoming pandemic activity amid lower uncertainties for reasons Main to pandemic.coronavirus due to brought standstill were activities all before on transactions saw 2020 of Beginning volume. transaction investment of million 2019 in active also was a estate real Commercial Summary " safe was Raiffeisen wasLeasi Raiffeisen area comprises over 14,600 m² of and Ljubljana in district Moste in located 2020. January in Triglav) acquired Trigal eod er n 09 Soein market Slovenian 2019. in year record

ahcly ivsmn atvt was activity investment raphically, affected by the the by affected - nelig efrac of performance underlying t xetd o pie properties. prime for expected ot

haven etitos which restrictions, and 630 parking spaces. parking 630 and

netet ru (GL and (KGAL group investment MARKET ased .

infcn cags n yields in changes Significant

the the "

stabiliz ).

. a the the capital Ljubljana.capital netr r xetd to expected are Investors focus on the

Feniks Business Center - Feniks office building is officebuilding Feniks up up demand is expected Slovenia es, and investors have investors and es, potential ein f 8.0 of region ng the the

in sector in CEE had CEE in sector a . ,

the couple couple atd property halted ih vr €480 over with H1 2020 n ubek of outbreak

office office sector. CRE market CRE

net leasable changes of changes - The s The producing

of of

0

larger % were eller eller

the for a

  

390 parking places.390 Tuš and m² 9,400 Slovenia. around of surface net total in has zone and 1995 in built was supermarket retail and in BTC City, which is located is Property in 2020. million February district, €9.5 for Moste sold was Ljubljana in supermarket Tuš was not disclosed. was not ho 3* 2020. January in Sobota Murska in Diana Hotel sold Resolution, Asset Heta 3,600 and 5,320 million. €8.4 around for 2020 February in sold was Maribor in Slavija PC centre Business tel has 97 accommodation units. Price units. accommodation 97 has tel m² m² of m² m²

office and commercial spaces garage h p The Source: the

. oet comprises roperty largest commercial

Source: Colliersdatabase Source: pcslavija.si

tus.si

a

H1 2020 | Slovenia

15 Research and Forecast Report | Colliers International

H1 2020 H1 2019 Prime industrial yields industrial Prime 2018 18,7% Other 83,6%

The rest The 2017 Office 8,8% Prime retail yields retail Prime 2016 72,5% Ljubljana 16,4% Retail 2015 | Figure| 18:Colliers International

2014 Prime office yields office Prime International

7,00% 9,50% 9,00% 8,50% 8,00% 7,50% 11,00% 10,50% 10,00%

tional Figure| 17:Colliers H1

IN

SLOVENIA IN

H1 2020 REGION -

: : : 18 17 16

LUMES BY PROPERTY Sources: Figure 16:Colliers Interna 2020 COMMERCIAL REAL ESTATE INVESTMENTTRANSACTION MACROBY Figure

INVESTMENTTRANSACTION VO SECTORS IN Figure Figure COMMERCIAL REAL ESTATE Figure Figure PRIME YIELDS H1 2020 | Slovenia 16

Research and Forecast Report | Colliers International RESIDENTIAL MARKET

 constructionunder Projects price wefurther growth. anticipate completion. as general, In Prices permanentfor looking residence. comes predominately from local population year. previous the were lower compared to the same period of K Celje, Maribor, increase first the In demand. accumulated year recent in growth price market The Demand pipeline. large several and projects 6 in decreased also permits issued in buildings residential of number to compared in Slovenia residential for permits issued Slovenia. in market estate is market Residential Supply

4.5 completion is completion scheduled for mid four two, namely sizes, different of The centre. residential area city comprises 96 apar Ljubljana in located Šumi center is a mixed h anucd e poet cm to come projects new announced the %. - room apartments.

However,t

d

a ne construction under

nd Expectations

af f 2020 of half

rc stabiliz price 2020 H1 n ao cte (Ljubljana, cities major in oee, o pie locations, prime for However, saw the same the same period 2019 of

ranj, Koper), but volumes but Koper), ranj, stabilization here Demand for apartments for Demand -

scale ones in in ones scale decreased by 6 by decreased

the

is ,

-

As As of spring 2020, to i expected is ation use use project

prmn prices apartment a Source: most active real active most number ofnew F s 1 2020 H1

cue by caused , or ra of area loor n Ljubljana in fe strong after buildings

three and three - reporter

2021. tments

that that

. 9.5

The

the

by % .si in is

  

Moste in located is project Šmartinka Zelena is project for end of planned 2022. the parking of 230 Completion over spaces. and sizes various Villa Ljubljana will comprise 125 apartments of and Cu Palais the Schellenburg for begun P 2021. municipality. in Street Hradeckega two into divided buildings. places parking 69 comprising Dev is planned 2021. project in apartments. 123 of three with of heights different of buildings consists project The Street. reparatory work reparatory rrently n Pr is Park ana

- oj district Polje , Source:

the Development a opein s expected is Completion total ot uuiu poet in project luxurious most ljubljananepremicnine.si s mixed

of a on the land the on

Source: Source: 47 apartments and apartments 47 opein f the of Completion eieta project residential Golovec cadastral Golovec on -

use

s oae on located is

stoja Flajšmanova smartinka.si plot have plot - project trade.si

a

total

in .

H1 2020 | Slovenia

17 Research and Forecast Report | Colliers International

HOUSE PRICE INDEX PRICE HOUSE Number of buildings of Number 125 100 75 50 25 0 150 500 0 3.000 2.500 2.000 1.500 1.000 Koper House price index price House H1 2020 H1 Kranj

Number of buildings of Number H1 2020 H1 2019 2019 Celje 2018 Existing apartments Existing 2018 Maribor 2017 2017 Floor area of building [m²] of building area Floor 2016 Ljubljana

0 New-built apartments New-built 0 € € 0 7.000 6.000 5.000 4.000 3.000 2.000 1.000 9.000 8.000 750 500 250

2.250 2.000 1.750 1.500 1.250 1.000 € € 500 Floor area m² (in Hundreds) (in m² area Floor NUMBER OF TRANSACTIONS OF NUMBER € 3.000 € € 2.500 € 2.000 € 1.500 € 1.000

(excl. VAT)

BUILDINGS IN

) IN SLOVENIA

: : : INDICES PER QUARTER 21 20 19 Ø2015 Ø2015 100= Sources: Figure 19:Trgoskop Figure| SURS 20: Figure| 21:SURS ISSUED ISSUED PERMITS FOR RESIDENTIAL SLOVENIA Figure Figure ( NUMBER OF APARTMENT TRANSACTIONS HOUSEAND PRICE Figure Figure PER SQUARE METER OF USEFUL SURFACE Figure Figure MEDIAN APARTMENT PRICE H1 2020 | Slovenia 18

Research and Forecast Report | Colliers International ABOUT COLLIERS

Twitter at success Learn more about how we under assets of billion €3. 2 In industry returns forinvestment shareholders. delivered have team, our owning more than leadership 40% years,of our equity, 20 experienced than more For estate real occupiers, owners and investors. for property of value expert the maximizeto services and advice provide to work collaboratively people our enterprising countries, With 18,000 68 in company. operations investment and management services estate real global leading a (NASDAQ, is CIGI) TSX: International Colliers than more with billion, 1 1, oprt rvne were revenues corporate 019, @Colliers corporate.colliers.com

or LinkedIn

management.

accelerate - . leading

€29.4 €29.4

,

EMEA: AsiaPacific: LatinAmerica: Canada: States:United 6 68 443 andstaffprofessionals 18,000 managementunder square million meters 175 in transactions 2019 completed billion €115 revenue annual in billion €3.

c

1 ontinents ontinents countries countries

offices

114

4 8

99

159 20

H1 2020 | Slovenia

19 Research and Forecast Report | Colliers International

-

CORPORATE CORPORATE SOLUTIONS

TENANT REPRESENTATION TECHNICAL TECHNICAL DILIGENCEDUE We simply think differently

t. t. You'll experience forward a developer, investor, landlord

re LANDLORD LANDLORD REPRESENTATION '

CAPITAL CAPITAL offers a comprehensive portfolio of real estate services across

MARKETS SERVICES COLLIERS ions, Project management, Real estate management, Valuation &

International

or tenant, we are a partner who is dedicated in seeing you succeed.seeingin is youadedicated are partneror who tenant, we Colliers Croatia, Bosnia and Herzegovina & developers Slovenia on to a occupiers, local, owners, regional, investors Workplace national and solut and international basis. Services investment advisory, include Capital markets, Landlord representation, Tenant representation, diligence. Corporate due Technical and solutions What sets Colliers apart is not what we do, but how we do i looking expertise that elevates value every step of the way. and that produces innovative outcomes. Whether you Colliers professionalsColliers differently think

ADVISORY ADVISORY INVESTMENT VALUATION & VALUATION SOLUTIONS WORKPLACE WORKPLACE PROJECT REAL ESTATE REAL MANAGEMENT MANAGEMENT

MANAGEMENT

FOR MORE INFORMATION

COLLIERS INTERNATIONAL CROATIA, SLOVENIA AND AUTHOR: BOSNIA AND HERZEGOVINA Ivan Laljak +385 1 4886 280 Consultant [email protected] Investment, Valuation and Advisory Services http://www.colliers.com/en-gb/croatia [email protected]

This report gives information based primarily on Colliers International data, which may be helpful in anticipating trends in the property sector. However, no warranty is given as to the accuracy of, and no liability for negligence is accepted in relation to, the forecasts, figures or conclusions contained in this report and they must not be relied on for investment or any other purposes. This report does not constitute and must not be treated as investment or valuation advice or an offer to buy or sell property. Colliers International About Colliers International Colliers International (NASDAQ, TSX: CIGI) is a leading real estate professional services and investment management company. With operations Petrinjska 3 in 68 countries, our more than 18,000 enterprising professionals work collaboratively to provide expert advice to maximize the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has Zagreb delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers or LinkedIn.