Real estate invesment volume at €4.6 bln in 2016 – Colliers

The total value of transactions concluded in Poland in 2016 amounted to €4.6 billion, the best result since 2006, according to a Colliers International report. Last year 80 institutional investment transactions involving over 130 properties across all asset classes were closed. Over 70 percent of the capital was invested. in regional markets, whose liquidity is expected to continue to grow.

Retail asset class dominated the investment volume with a 43 percent share, followed by offices at 40 percent. The largest transactions of 2016 include the acquisition of a Polish office & retail portfolio by Redefine for app. €900 million, the purchase of the Q22 office scheme in the Warsaw CBD by Invesco for €273 million, and the acquisition of shopping mall Bonarka City Center in Kraków by Rockcastle for a reported sume of €361 million.

South African investors dominated the market in 2016 with EUR 1.8 billion spent, accounting for 40 percent of the overall share in the investment volume. Polish domestic capital was virtually non-existent with a 2 percent share.

“Poland maintains the leading position in the CEE region, which was further characterised in 2016 by ever-growing liquidity and upward pressure on pricing. Demand was equally strong across all asset classes in addition to an impressive appetite for corporate and portfolio deals with record-breaking transactions along the way. In 2017 we expect continued growth with new capital and investors entering Poland who are interested in all asset classes as well as platform/corporate deals,” said Piotr Mirowski, partner and director of CEE Investment Services at Colliers International.

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