C&W: Warsaw 25th largest market in Europe

Global property investment rose 16% in the year to June ($942.8 billion) and now stands at its highest since 2008, just 13% below the pre-crisis peak, Warsaw saw investment totaling $1.76 billion in the year to June, making it the 76^th largest market in the world and the 25^th largest in Europe, a recent report by C&W showed. The annual survey shows that top 25 gateway cities in terms of real estate investment saw market share rise from 51% to 53%. New York maintains number one status while North America is the fastest growing target for foreign capital. The current forecast is for global volumes to rise by 17% over the year to mid-2016, reaching a new record high of $1.1tn led again by growth in North America and Europe. While clearly a popular target, Warsaw has lost out in the past year as a relative shortage of opportunities has led to a fall in activity compared to the previous 12 months, the report indicated. This drop in activity is expected to be a short-term trend with an increase in volume being experienced in the second half of the year. Prague actually moved ahead to take the crown with the largest investment volume in Central Europe for the period. Warsaw did manage to outperform other towns in Poland, with the rest of the country seeing a 41% fall in activity thanks in particular to a drop in the retail sector. Apartment volumes increased strongly, if from a low base, while office activity also increased, predominantly outside Warsaw. "Polish properties remain at the top of the list for investors in Central and Eastern Europe. Poland is the largest investment market in this part of Europe. It continues to attract growing capital flows and a broadening audience of investors benefiting from relatively easy access to capital, strong macroeconomic fundamentals and competitive yields," said Piotr Kaszyński, Partner, Head of Capital Markets in Poland, Cushman & Wakefield