Good prospects for the investment market in Poland

The picture depicts Harmony Office Center.
The picture depicts Harmony Office Center.
According to experts' prognoses, Poland may reach the level of 2,5 bn EUR of investment transactions in 2012.

The advisory company Savills has published a report concerning investment transactions on the Polish commercial real estate market. According to its prognoses, the value  of transactions on this market may exceed 1 bn EUR in the second half of 2012. It is related to a great number of preliminary agreements and investment transactions that are currently being realized. Adding 856 mln EUR, that is the result of the first half of the year, the Polish investment market may, by the end of the year, reach the result fluctuating between 2 and 2,5 bn EUR.

Despite a 15% decrease in comparison with the first half of 2011, Poland remains the main investment market in CEE. As Michał Ćwikliński from Savills Polska says, The increase of domestic investors’ activity as well as the prevailing popularity of Polalnd among foreign investors, confirm Poland’s position in the lead of Central and Eastern European markets. Taking into account the fact that some important preliminary agreements have already been signed and other bigger transactions are at the stage of realization, we expect a very good second half of 2012.

One of the biggest transactions concluded In the first half of the current year In the office Real estate sector was the purchase of the second phase of Harmony Office Center in Warsaw by the Azora fund for 54 mln EUR. And Warsaw itself remains the most attractive location for investments, especially in office real estate. It is confirmed by the fact thar only one out of five transactions concluded in the first half of 2012 took place outside the capital.

As Michał Stępień from Savills Polska comments, Both international and domestic investors are interedted first of all In the best real estate, i.e. with a long tenancy and in the best locations, as well as in real estate connected with bigger risk, but giving an opportunity to increase the value significantly, which causes the polarization of the Polish market. We estimate that by the end of 2012, capitalization rates for the best real estate will remain on a stable level, especially in the central business area in Warsaw.

The full report (in English) is available below.  

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