The value of commercial real estate investments in Central and Eastern Europe in the three quarters of 2020 amounted to approx. €8 billion. Poland's share was estimated at €4 billion, Colliers International reported. The total volume of transactions in commercial real estate at the end of the year will probably amount to €10-11 billion, i.e. approx. 20 percent less than in 2019.

"The Polish investment market remained strong despite the lockdown and the ongoing pandemic. While we expect lower volumes at the end of this year, the first three quarters brought satisfactory results – around €4 billion, of which €1.5 billion was allocated to the office space sector and €1.9 billion in warehouses. This is a result that is close to setting a new record. We expect a further increase in interest in Polish real estate, especially in office and logistics asset classes, supported by a strong inflow of capital to key markets in the country. However, understandable given the circumstances, the transactions will take longer to complete,” Piotr Mirowski, senior partner, head of the Investment Advisory Department at Colliers International, said.

Colliers International experts noted very slight changes in yields, mainly due to the limited number of finalized transactions indicating further movements in this sector. While some changes are unavoidable, well-functioning assets should remain stable, with more emphasis on properties that are riskier in terms of investment but offer a better return on investment compared to standard properties, always enjoying the interest of investors. Due to the shift in investor interest towards logistics, an appropriate price response in this asset class can also be expected.

The office sector again dominated the first three quarters of 2020. Weaker results than in the previous year were recorded in the retail and hotel markets. The logistics real estate sector has increased significantly. Only low supply stopped the achievement of higher volumes in this asset class.

(ISBnews)