Real estate booming in Q1 2020: Avison Young

Throughout the first quarter of 2020, total transaction volume on the commercial real estate market in Poland exceeded €2.4 billion, according to preliminary results by Avison Young. That’s almost three times as much as compared to the corresponding period of 2019, however in line with Avison Young forecasts from December last year.

Robust investment activity has been mainly noted in the industrial and office sectors. Asian investors dominated investment volume in terms of capital origin, with a particular focus on the industrial sector. At the same time, the growing investment activity of CEE investors is continuously observed, especially in the office market.

More than 60 percent of the total transaction volume was generated in the industrial market, which confirms strong investors’ interest in this sector. As a result, only after the first three months of the year, the industrial sector has already achieved 95 percent of the last year’s total transaction volume of the sector. A significant part of this is a result of the large, pan‑European takeover of Goodman by GLP. Avison Young points out, that this confirms another trend spotted recently on the property market, namely increased interest in corporate‑level acquisitions, offering investors not only property investment but also the takeover of whole operations what makes leasing and asset management easier, but also enables rapid expansion to the market.

(WBJ)