Polish investment market facing upcoming challenges

End of the first quarter of the year was partly influenced by the new geopolitical situation, when the whole real estate market held a breath. Despite new circumstances, ongoing transactions are closing, which is reflected in the first quarter of 2022 investment market results. Furthermore, especially regional investors from Lithuania, Czech Republic, Hungary or Slovakia keep their interest in real estate properties located in Poland.

“2022 recorded the third best opening of the year since 2016 in terms of investment transactions with €1.7 billion of total investment volume. This result was, however, determined by three extraordinary deals, which amounted to 75 percent of total volume transacted,” Paulina Brzeszkiewicz-Kuczyńska, Research and Data Manager at Avison Young in Poland, pointed out.

The first one was the office acquisition of The Warsaw Hub by Google. The second and the third regarded the sale of 50 percent of EPP portfolios by establishing two joint ventures. Thus, the retail and office sectors have the dominant share in the total investment volume structure, reaching 44 percent. 

Real estate investment market has already caught up a breath after the pandemic, when the war in Ukraine started. Some investors will for sure watch the CEE region cautiously when considering new investments here, however regional investors remain invariably active. Moreover, the influx of refugees plays in favor of PRS sector development.

“Solid opening of 2022 as well as many currently ongoing transactions confirm the stability of the real estate investment market. Transacted deals regarded both large and small properties in multiple sectors and the investment market saw also a few newcomers. Despite some turmoil, we expect that the investment market in Poland will continue to attract investors,” Paulina Brzeszkiewicz-Kuczyńska summed up.

(WBJ)