22:52 12 October 2020
Investments in real estate sector in Poland to be nearly half of total transaction volume in CEE in H1 2020
In the first half of 2020, over €6 billion was invested in the real estate sector in the six main markets of Central and Eastern Europe, with Poland accounting for nearly half of the volume (47 percent). After the outbreak of the pandemic in the CEE region, banks would most willingly finance industrial and warehouse investments from all asset classes. In the era of Covid-19, hotel properties are the least popular among bank respondents, according to a global KPMG study assessing the willingness of banks in Central and Eastern Europe to finance real estate investments.
“The propensity to finance commercial real estate in Poland has decreased in recent years. The COVID-19 pandemic has accelerated this decline, and banks are now showing limited readiness to finance commercial real estate. In addition, the pandemic has left banks reluctant to finance hotel properties as well. On the other hand, banks are still open to financing office and industrial real estate in Poland, albeit on stricter terms,” Steven Baxted, partner, leader of consultants for the construction and real estate sector at KPMG in Poland, said.
The interviewed bank representatives in the CEE region have mixed feelings about the prospect of office space development as well, given that many companies across the region have implemented a remote work policy during the pandemic.
(WBJ)
