In acquisitions on the Polish commercial real estate market, domestic capital is increasingly making its presence felt, as this form of asset allocation is becoming a natural investment direction. Local investors are gradually building the position of a strategic group of market participants. The motivations behind their investment decisions include primarily protecting the value of their assets, the need to diversify portfolios, building prestige, and pursuing long-term strategies aimed at generating stable passive income. These factors make commercial real estate an increasingly obvious and consistently chosen asset class for domestic capital, says Bartłomiej Zagrodnik, Managing Partner & CEO of Walter Herz.

Expansion of Polish Capital

After the first three quarters of 2025, the share of Polish capital in acquisitions on the commercial real estate market rose to 23 per cent. The office segment stood out in particular, with Polish investors accounting for over 50 per cent of all transactions, both in terms of their number and total value.

The growth dynamics of domestic entities are significant. Just three years ago, Polish companies were responsible for around 2 per cent of the transaction volume recorded in Poland. In 2024, their share increased to approximately 9–10 per cent, and in the first quarter of 2025 it reached 17 per cent, covering more than one-third of all finalized deals.

Over the first nine months of 2025, domestic investors allocated more than EUR 0.6 billion to the Polish commercial real estate market, thus increasing their level of engagement compared to the previous year, when the value of their investments amounted to EUR 0.5 billion.

Polish companies are taking advantage of the attractive prices of properties available on the domestic market. They see an opportunity in the clear valuation gaps for good-quality assets in Poland compared with other European markets. Investment activity in the country is also encouraged by market transparency and transaction security, stable internal demand, rising rental rates, and easier access to debt financing,  says Bartłomiej Zagrodnik.

Polish Capital Right Behind Western European Investors

In 2025, investors from Western Europe maintain a slight lead over Polish capital. They are followed by U.S. investors, whose activity in terms of investment value is lower than that of domestic capital.

According to the Walter Herz report “Why Invest in Poland in 2026,” the importance of high-net-worth Polish individual investors (HNWIs) is growing. They are increasingly active not only in acquiring ready office, retail, or logistics assets on the domestic market, but also in entering development projects, typically carried out in joint-venture structures with developers. Alternative forms of capital deployment are also playing a greater role, such as debt funds, bonds, convertible loans, and investments structured around family foundations.

The HNWI group, defined as individuals with a net worth exceeding USD 1 million (excluding the value of their primary residence), numbered around 20,490 people in Poland at the end of 2024, controlling assets worth USD 72.19 billion. Warsaw, the fastest-growing wealth hub in Europe, is home to nearly 13,000 millionaires, 32 centimillionaires, and four billionaires.

In terms of the number of HNWIs, Poland ranks among the leading countries in Central and Eastern Europe, ahead of, among others, Greece, the Czech Republic, and Romania, while still remaining behind the largest Western European markets such as the United Kingdom (2.8 million HNWIs), France (2.8 million), and Germany (2.7 million).

Attractive Yields of Real Estate in Poland

According to analyses by Walter Herz, the total value of transactions concluded on the Polish commercial real estate market in 2025 has a chance to exceed EUR 5 billion, the result achieved in 2024. During the first nine months of this year, the largest share of capital was invested in the office and industrial-logistics sectors, each generating roughly one-third of the total investment volume. The retail segment accounted for around 20 percent of transaction value. The increasingly bold activity of domestic investors in acquisitions is focused primarily on assets valued between EUR 5 million and EUR 30 million.

Private investors increasingly view real estate as an attractive alternative investment offering higher returns than many traditional instruments. According to Walter Herz, Warsaw provides some of the highest yields in the CEE region. Prime office and logistics yields in the first half of 2025 stood at around 6.25 per cent, while prime retail centers offered approximately 6.50 per cent. By comparison, in London or Paris prime yields hover around 3.5-4 per cent, making the Polish market highly competitive, particularly for HNWIs seeking an appealing risk-return profile.

Investment Priorities of Polish HNWIs

According to the Walter Herz analysis, high-net-worth Polish private investors are driven by unique motivations that make commercial real estate a key component of their investment portfolios. One of the most important factors is prestige. For HNWIs, real estate investments are not only about returns but also a symbol of status. Owning prestigious assets such as luxury office buildings or historic townhouses located in city centers, not only provides current income and long-term value growth, but also helps build a company’s reputation and underscores its success.

The second key priority is capital preservation and protection against inflation. Commercial real estate is perceived as a stable asset with relatively low sensitivity to short-term market fluctuations. Risk is further mitigated through portfolio diversification, acquiring properties across different sectors and locations or regions.

A fundamental motivation remains the ability to generate steady passive income without the need for active management. Long-term lease agreements provide predictable cash flows, often offering ROI in the range of 6–10 per cent per year. Real estate assets combine the benefits of current income and value appreciation with tax advantages through depreciation.

Forms of Investment

High-net-worth private investors can use a wide range of real estate investment options, including both passive financial instruments and models requiring greater operational involvement. One of the simplest and most liquid methods is acquiring shares in development and investment companies, which provides exposure to the entire portfolio of projects managed by the issuer, without the need to manage the assets directly.

An alternative with more predictable cash flows are debt funds secured by real estate, which offer regular interest income derived from financing development projects. Similar in nature are bonds issued by real estate entities, where the investor provides capital for a fixed period and receives a fixed interest rate, depending on the issuer’s financial condition and the structure of the collateral.

Investors seeking higher return potential may opt for mezzanine loans, which combine elements of debt and equity, providing both interest payments and the opportunity to participate in the profits generated by the project. Convertible loans operate in a similar way, allowing investors to start with a debt position and, upon meeting certain conditions, convert it into equity participation.

A classic solution for HNWI investors is the purchase of leased properties, which serve as a prestigious component of a long-term investment portfolio, generating current income and stable cash flows, while also allowing value enhancement through property upgrades or improved management. – Technical due diligence (TDD) is crucial prior to acquiring a property, as it helps identify potential risks and estimate operational and investment costs. Facility Management (FM) analysis and an assessment of the property’s design solutions are also important, as they allow evaluation of the functional flexibility of the asset –  emphasizes Bartłomiej Zagrodnik.

Some Polish investors also choose to collaborate with developers through joint ventures, contributing land and part of the capital, while the operating partner handles the comprehensive execution of the project.

A more demanding strategy is independently carrying out a development project, which involves acquiring land, navigating administrative processes, overseeing construction, and handling commercialization. This approach can achieve the highest margins but comes with significant risk and high operational intensity.

Many investors are also interested in revitalizing older properties, which, through modernization and adaptation to current standards, can gain substantial value and become attractive both as income-generating assets and as resale opportunities. One of the more advanced and time-consuming forms of investment is also changing a property’s designated use, which requires navigating complex planning and administrative procedures but can unlock new value and significantly increase the property’s valuation.

(WBJ)