Commercial real estate in Poland with the highest popularity in CEE

In the first half of this year, investors' activity resulted in a large number of acquisitions on the commercial real estate market in Poland. However, the acquisitions concerned mainly facilities of lower value than in the previous year. Hence, the transaction volume was several percent lower than a year ago. Nevertheless, most of the capital invested in commercial real estate in our region of Europe in the first six months of the year flowed to Poland.

“In the first half of 2021, the greatest investment activity on our market could be observed in the warehouse and office sectors. The transactions concluded at that time, were divided between these two segments. The retail sector, in which mainly retail parks and smaller convenience facilities were purchased, had a dozen or so percent share in the transaction volume. The PRS market, where further transactions have been recorded, continues to become stronger,” Bartłomiej Zagrodnik, Managing Partner/CEO of Walter Herz, said.

Warehouses remain in trend, which in 2020 brought the sector the best result in the history of the investment market in Poland. Supply in the warehouse segment is growing rapidly. In the first half of the year, over 1.1 million sqm of new space was delivered. According to Walter Herz's calculations, there is still a record amount of new space under construction - 3.4 million sqm of warehouses. This year, the logistics sector remains the leader in terms of the value of the investment volume, although the result recorded in the first 6 months of this year differs from the record result achieved in the previous year.

On the other hand, the pandemic has turned away the attention of investors from hotel properties. In the first half of this year, only one transaction worth €29 million was recorded in the sector, and it concerned the acquisition of Warsaw’s Regent by PHN and PHH.

(WBJ)