Investments in commercial real estate Poland amounted to EUR 1.25 billion in Q1 2021
Investments in Polish commercial real estate amounted to EUR 1.25 billion in Q1 2021. This represents a 1.5% decrease compared to the five-year average for the first quarters of 2017-2021, data shows from CBRE. The largest investments were made in office properties (EUR 600 million) and logistics (EUR 430 million).
"Good investment results at the beginning of the year inspire optimism. Capital flows to Poland of comparable value as in previous years. Investors' attention is attracted mainly by offices, but also warehouses, which is a result of the dynamic development of the e-commerce industry. Retail real estate, however, is less popular However, this does not apply to all facilities. The appetite for the purchase of retail parks and grocery supermarkets remains high. There is also a growing interest in the residential sector. In general, investors are looking for safe and attractive products, but importantly, despite the pandemic new players are constantly appearing on the market, expanding the group of funds investing in Poland, " according to Przemysław Felicki, director of the capital markets department at CBRE..
In the first quarter of 2021, a total of 32 real estate transactions were concluded. Their investment volume reached a value close to the sum of transactions from the last quarter of 2020, it was reported.
Most of the money invested in real estate in Poland at the beginning of the year went to offices - as much as 48% of the total amount. Office transactions totaled EUR 600 million. The good streak from previous years, and in particular from 2020, is continued by the industrial and logistics segment. As a result of the dynamic increase in online sales last year, and as a consequence of the growing demand for logistics space, the position of logistics real estate as a safe and attractive investment product has strengthened. In the first quarter of 2021, investors invested EUR 430 million in this sector, - according to CBRE data.
Despite the decline in investors' interest in some retail formats, such as shopping centers, the appetite for shopping in retail parks and grocery supermarkets remains high. The value of the investment market in the retail segment reached almost EUR 190 million. The smallest category is still residential real estate with an investment volume of EUR 12 million. This translates into less than 1% of the share of this sector in the total turnover of commercial real estate, they also reported.
"The residential segment, despite its small share at the moment, attracts the attention of an increasing number of investors. Especially if we take into account that this result does not include forward purchase transactions, i.e. still undeveloped residential buildings. Their value is estimated at an additional tens of millions. euro," - further stated Felicki.
In the first months of 2021, most investment capital came to Poland from Europe (55%). A positive phenomenon that we observe on the investment market during the pandemic is the growing number of transactions with Polish capital and the growing number of domestic players who carefully invest their funds in smaller investments. Their share is now 3% of the total market. Capital from North America, Africa and Asia accounts for 17%, 9% and 5% of the total investment volume respectively, the report summarized.
Source: CBRE and ISBnews
