In the first quarter of 2024, Polish capital emerged as a significant player in commercial real estate, despite a weak start to the year with a transaction volume of €364 million. By mid-year, Polish capital represented 25% of the total market volume, positioning it fourth, behind British (29%), Central and Eastern European (18%), and Western European (13%) capitals. This marks a notable increase from the previous year, where Polish capital's market share was just around 2%.

Local investors in Poland range from established entities like Satoria Group and Falcon Investment Management to smaller family offices and individual investors. Many new investors have achieved significant financial success in other areas and now view real estate as a safe investment for surplus capital. As the market matures, family foundations are expected to become a popular structure for transactions, aiding in succession planning.

Polish investors are primarily targeting smaller, affordable assets due to their capital constraints. In the retail sector, they focus on single, free-standing grocery stores and retail parks, with prices ranging from €7-9 million, although larger parks can go up to €30 million. They also show interest in older office buildings in prime areas, often bought at attractive prices for redevelopment or demolition. Notable 2024 purchases include Curtis Plaza and the remainder of myHive Mokotów.

Some transactions involve acquiring vacant properties for modernization. Examples from the first half of 2024 include the Ludna 2 office building and the former Tesco building in Góra Kalwaria. These assets are often redeveloped for profit or held long-term for steady income.

All hotel properties sold in the first half of the year were purchased by Polish investors, with Satoria Group acquiring two Hampton hotels and TMS Inwestycje buying the Holiday Inn near Warsaw.

(WBJ)