Colliers International has issued a report summing up total investment activity on the Polish market in 2012. The key information it provides is total transaction volume of approximately €2.7 billion, which means a return to pre-crisis levels of 2007.
Poland is still the leading market in East-Central Europein terms of investment volume, liquidity and availability of debt financing for core real estate. In 2012, many significant deals were closed, which demonstrates the confidence that foreign investors vest in the Polish market.
The Colliers report shows that the best office buildings in the centre of Warsaw boast the capitalization rate in the range of ca. 6.25 – 6.50%. In the Mokotów, second largest business district in Warsaw, cap rates continue their upward trend, from below 7% in 4Q 2011 to ca. 7.5 – 7.7% in 2Q 2012. This part of Warsaw saw two large transactions: the acquisition of Platinium Business Park by Allianz Real Estate and Tristan Capital Partners for €210 million and the acquisition of Marynarska Business Park by Heitman.
The office sector volume accounted for 34% of the market share, which is the second largest contribution after the retail sector (45%). Colliers informs that ”sales outside of Warsaw have been limited to a minimum, partly due to the limited availability of investment grade product but also due to the fact that Warsaw is the main market generating tenant interest.”
The report presents prognoses for 2013, according to which prime yields fore core properties will remain stable. Moreover, the investors' confidence and activity on the market will be maintained as well, subject to the EU macroeconomic outlook.
"Poland will maintain its position as the dominant market in the CEE. Any further movement in pricing is expected to depend largely on the impact of the sovereign debt crisis and additional capital requirements of the main senior lenders in the market.” – comments Piotr Mirowski, Director, CEE Investment Services, Colliers International.
Below you will find the full version of the report in a PDF file.Download PDF