Poles invest little in domestic commercial real estate

In the first half of 2021, €2 billion was invested in Polish commercial real estate. According to CBRE data, 96 percent came from foreign capital and only 4 percent from domestic investors. This tendency has been visible in our country for many years. Meanwhile, in many other European countries, local investments in the commercial real estate account for several dozen percent of the total amount. In the last five years in the Czech Republic, domestic capital exceeded one-fifth of the total amount, and in Germany, it was higher than 50 percent. CBRE experts indicate that Poland still lacks legislation supporting local investors, such as REIT funds.

“The Polish commercial real estate market is developing intensively despite the pandemic. It has great potential, which is noticed by both foreign and Polish investors. The disproportion between the share of domestic and foreign capital is still huge. This is especially visible when comparing Poland to other European countries, where the percentage of the amount coming from local sources is often more than ten times higher than in our country. Our neighbors show that the key to improving this proportion are changes in the law, and above all, providing investors with appropriate tools for investing capital, such as REIT funds. And our countrymen do not lack money and willingness, as can be seen from the example of the housing boom with which we are currently dealing. Appropriate changes in the law would allow us to diversify the investment capital at our disposal and would certainly have a positive impact on many aspects of the economy,” Daniel Bienias, managing director of CBRE in Poland, said.

REITs are special companies or investment funds which, acting on the basis of more friendly legal regulations, make it easier for individual investors to allocate capital in the commercial real estate market for rent. Their distinguishing feature is, among others special tax status.

(WBJ)