20:17 16 March 2024
Local capital's share in the Polish real estate market still negligible
Domestic investors hold a mere 2 percent stake in the Polish real estate market, while in the Czech Republic, this percentage is 60 percent. This is due, among other reasons, to the lack of legislation in Poland that would enable local individual and institutional investors to invest capital in commercial real estate, such as REITs, which have been successfully operating for years in the USA and European countries. Now, hopes for their introduction have been rekindled following announcements by Finance Minister Andrzej Domański, who declared that the ministry is ready to actively participate in discussions on this idea. Experts emphasize that the introduction of Polish REITs would help more quickly activate the Polish commercial real estate market after a period of slowdown.
"Everyone hopes that 2024 will be better than the previous year for the Polish transactional market. We are already observing the first signs of such activity. True, we will still have to wait a bit for investors from the US and Western Europe, but we are observing activity from investors in Central Europe, Eastern Europe, and Scandinavia. We hope that this trend will strengthen," Katarzyna Kopczewska, partner and co-head of the Tax Practice at Baker McKenzie, said.
(Newseria)
