Non-prime investment activity increases

According to DTZ’s Investment report, the commercial real estate investment volume in Poland totaled €801 million in H1 2015, down by 42 percent compared to the same period last year and was at half the level seen six months ago. The analysis carried out by DTZ suggests that this decrease was caused mainly by the lack of deals over €100mln in H1 2015. The market was dominated by transactions within the €50-100 mln price range, accounting for 72 percent of the total volume. As a result, the average transaction value fell in H1 2015 to €40mln, down by a third compared to the corresponding period of 2014. "Market sentiment has improved, and the demand for commercial property in Poland remains stable. New global players entered the Polish investment market, looking to penetrate it by buying real estate or acquiring successful investment platforms. The slowing of market activity in the first half of the year stems from a limited supply of prime assets,” said Kamila Wykrota, Head of Consulting Research at DTZ. Offices remained the most popular asset class with a market share of 45 percent (€362 mln) in H1 2015. This was followed by retail at 32 percent (€260 mln), and industrial assets at 19 percent (€149 mln). Investment activity in the Polish commercial real estate market continued to be dominated by foreign investors, who accounted for 90 percent of purchases, investing €720 mln in H1 2015.