CBRE: Poland in the top3 of expected highest return on real estate investment in Europe

Poland is among the top three European countries where investors expect the highest real estate returns, according to a CBRE report. According to analysts, investment activity in the commercial real estate market will gradually recover in H2 2024.

"Investment activity in the commercial real estate sector achieved in Poland in 2023 was the lowest in 13 years. However, this was not an isolated case, such declines were recorded by almost all European markets and were mainly caused by high financing costs. The year 2024 brought more optimism and we can expect a gradual revival of investment activity in the coming months. However, even with lower interest rates, the cost of financing will still be higher than in 2021-2022, which requires an increasingly creative approach to business and investment," said Co-Head of Living - Capital Markets Poland, CBRE Przemysław Łachmaniuk.

Poland could be one of the main beneficiaries of the recovery in the commercial real estate market in Europe. According to the CBRE report, it was ranked third (after the UK and Germany) in a list of countries where investors expect the highest return on investment. In addition, Warsaw was recognised as the most attractive investment destination in the CEE region. It was the only capital city in CEE to be included in the list of the ten most attractive European investment destinations.

Of particular interest are industrial and logistics assets, which a third of European investors are targeting, and the sector of facilities with long-term rental flats, which 28 per cent of them are considering. In addition, almost half of all investors intend to look for opportunities in the area of private student residences and 38% also want to invest money in homes for seniors, the material indicated.

Source: CBRE and ISBnews
Photo: Przemysław Łachmaniuk, CBRE