Industrial assets account for around 70% of total investment volume in Poland

The investment volume on the Polish commercial property market is estimated to have reached €1.05 billion in Q3 2020. According to real estate advisory firm Savills, the industrial sector accounted for approximately 70 percent of that total, which illustrates the current investor preference for logistics properties, especially facilities dedicated to e-commerce.

Preliminary analyses from Savills show that industrial investment climbed to approximately €740 million in Q3 2020, accounting for a vast majority of the total investment activity in that period. Savills also note that the share of the industrial sector is likely to be higher when the final data for Q3 is fully known.

The industrial sector has already posted the strongest annual performance ever. Its previous highest result of €1.8 billion was recorded in 2018. Logistics investment has already hit almost €1.9 billion in YTD 2020, accounting for about a half of the total investment activity on the commercial property market in that period. The industrial sector also saw an almost 200 percent increase y/y in the transaction volume in Q1-Q3 2020.

“Investment activity in 2020 clearly shows that the industrial sector is the dominant real estate investment sector. 2020 is already a record year for warehouses which have never before posted such a good result and are likely to remain the top-performing sector in terms of commercial real estate investment volumes by the end of this year. Industrial assets have become the first choice for investors, boosting investment demand, which in turn has pushed prime yields down,” Tomasz Buras, CEO, Savills Poland, said.

(WBJ)