Residential and office investment land boost market growth - JLL

The residential, office, retail, hotel and agricultural investment land sectors in Poland developed dynamically last year due to the good standing of the Polish economy, its well-balanced capital and financial sector, as well as the falling unemployment rate, JLL reported. High growth dynamics on the office market and good conditions on the residential market had a positive impact on demand for investment land designated for projects from those segments. Investors looking for retail land focused mainly on plots intended for smaller schemes. Companies interested in hotel investment land were eager to analyze investment land in smaller regional cities with the aim of developing low-budget hotel projects. Transactions concluded in 2015 exceeded PLN 2.5 billion. "This result confirms the year-on-year growth in Poland's investment land market. It is mainly due to the dynamics of the residential market in Warsaw and other major cities, as well as the office markets in cities such as Kraków, Wrocław and Poznań," Daniel Puchalski, Head of Land Advisory Services at JLL said. Prices for investment land for residential development in the biggest Polish agglomerations increased, while demand was high, similarly to 2014, according to JLL. "In 2015, despite the fact that agricultural land prices have increased significantly over previous years, they were still at least two to three times lower than the average prices in many EU countries, where there are often no available resources of this type of land," Puchalski also pointed out.