Office sector in hibernation, Warsaw in focus

In 2023, Poland's real estate market experienced a decline in investment volume, with Q1-Q3 transactions totaling €1.7 billion, of which only €267 million pertained to office assets. Despite the slowdown, Poland remains active compared to other European markets, according to Marcin Purgal, Senior Director, Investment at Avison Young. The focus shifted to Warsaw, particularly in cheaper areas outside the city center. While global investors are less active, local funds and domestic capital, including Polish companies and family offices, have stepped in.

The office sector faces challenges like high financing costs and the perception of instability due to hybrid work models. However, optimism for 2024 arises from potential new assets entering the market, increased availability, and evolving investment strategies.

Source: WBJ