More offices, shops less

Rondo 1
Rondo 1
The value of investment transactions in commercial real estate in the first half of 2014 years was more than 25 percent higher than last year. The best results are recorded in the office segment, both in terms of investment and new surface.

In the first half concluded investment transactions with a total value of 1.4 billion euros. That is about 27 percent more than the same period last year. Until the end of the transaction value may reach 3 billion - says Charles Taylor, managing partner of Cushman & Wakefield in Poland. - We see a shift in the direction of the segment capital office - come here more than half of the capital. Commercial segment of the investment market has reached a lower level compared with the previous year.


More than 51 percent of the invested funds have been allocated for office space, while in the previous year, the largest investments in commercial buildings.


Revival among investors is a result of good economic situation in Poland, economic growth forecasts over 3 percent, low inflation and interest rates. In addition, unemployment decreases, so increasing private consumption, driving turnover of enterprises.


Poland is still the leader in the markets of Central and Eastern Europe in terms of attractiveness to foreign investors, mainly from Germany, the United States and Great Britain. Is also becoming an attractive alternative to the more developed markets in Western Europe - says Taylor. - Investors are looking for the opportunity to have a lot of capital that are willing to invest in Central Europe, especially in Poland. The main challenge for them is to find the right product.


In Poland in the second, half of the year increased not only the dynamics of investment, but also the supply of new commercial space, including in particular the office. In the first six months of this year was put into operation 292 000 square meters of offices, most of which (190 000 sqm.) was located in Warsaw. Experts forecast that throughout 2014 in Warsaw, the supply will increase by 330 000 sqm., Which will provide the best result for 14 years. Due to the large supply increases in the capital of the vacancy rate - currently amounts to approx. 13.5 percent. Another trend prevails in regional cities - where the vacancy rate has been steadily decreasing.


Among the regional cities, attracting investors especially those ranging in size from 100 to 400 thousand of residents. Arrives in them both office space and large-scale shopping malls.


The next few months will be on the market similar to the first six. The macroeconomic situation is stable, the economy is growing - predicts Taylor. - Tenants will be under pressure to change to new premises. Will be offered to them attractive lease terms, and this in turn will force a reduction in rental rates in the office segment. We will observe a steady demand for surfaces of sectors BPO (Business Process Outsourcing) and ICT (Information and Communication Technologies), mainly in markets outside of Warsaw.


Among the largest transaction was the sale of Rondo 1 office building in Warsaw for approx. 300 million and a shopping mall Poznan City Center for the estimated 200 million.

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