How the experts view the market
Hadley Dean, Managing Partner of Colliers International (Office)
"Last year we correctly predicted that office rents in Warsaw had bottomed out and that 2005 would be a banner year for renegotiating rents. During 2005 landlords in Warsaw, particularly in the city center, managed to lease much of their vacant space and now enjoy a better bargaining position. Effective rents are now rising in all districts and despite record levels of new supply, we predict that effective rents will rise in 2006. Another trend is that more and more international businesses are looking to move administrative departments, such as accounting and information technology, to Poland."
Aleksander Loster from from Capital Markets Group of Cushman & Wakefield (Warehouses & retail)
"Poland is seen by investors as a country with strong economic fundamentals and good development prospects, which reduces perceived risk. Retail will remain the biggest investment sector, especially since there are around 40 towns with a population of more than 100,000, which are attractive from both the developers' and investors' point of view. The industrial sector will still be the smallest, but it is expected to grow. More and more investors are looking for niche real estate. The secondhand market will develop and there is a chance for another record to be broken as far as demand is concerned. "
Kazimierz Kirejczyk, President of REAS Konsulting (Warsaw residential market)
"The phenomena of more people from the second population-boom generation entering adult age is being accompanied by the migration of young and well-educated people to the country's capital. Even if loans became slightly less affordable, generally development of the mortgage market should also support the demand. In addition, Warsaw is very popular among foreign investors, who also support demand by buying flats for investment and speculation. However, supply is likely to grow in the next years. So, prices will be increasing but the growth rate should be slower."
