Economy in Europe to return to pre-pandemic state in 2022, in Poland even faster

The coronavirus outbreak has negatively affected the commercial real estate market in Europe. Transaction volumes in the second quarter of 2020 fell by 39 percent, but the strong fundamentals of the sector will allow it to recover already in the second half of the year. 

It will take time for investments to return to pre-pandemic levels. It will take Europe two years and Poland half a year less, according to the CBRE report ‘Real Estate Market Mid-Year Outlook 2020’. The company's experts indicate that currently there is a lot of frozen capital on the market, which investors will start spending soon. The best office and logistics space will be the first choice.

“The previous year was record-breaking on the commercial real estate market. The value of investments in our country exceeded €7.7 billion, which means an increase by almost €3 billion compared to the result from two years ago. However, the growth cycle was sharply halted by the coronavirus pandemic. Nevertheless, a persistent environment of low interest rates with a lot of capital that investors have frozen amid market uncertainty means that commercial properties are well-prepared for a rebound. Especially since some sectors turned out to be very resistant to crisis conditions. Especially offices in the best locations and warehouses are doing great in the time of coronavirus,” Daniel Bienias, managing director of CBRE, said.

(WBJ)