Polish investors expand role in real estate market, accounting for 8.8% of transactions in 2024

Polish investors played an increasingly significant role in the country’s commercial real estate sector in 2024, finalizing EUR 444 million worth of transactions, which accounted for 8.8% of the total market volume, according to data from Cushman & Wakefield. This marks a threefold increase compared to 2023, reflecting a strong rebound in investment activity and a growing presence of domestic capital in the market.

The overall volume of real estate transactions in Poland reached approximately EUR 5 billion by the end of 2024, representing a 140% year-on-year increase. This recovery followed a period of historically low investment in 2023. The increase in Polish capital’s share in real estate transactions highlights the expanding role of local investors, although experts warn that sustaining this trend requires structural reforms, particularly the long-awaited introduction of the REIT Act. Such legislation would create a more institutionalized investment framework, preventing capital outflow and stabilizing investment conditions, especially in response to falling capitalization rates.

In 2024, Polish investors were involved in 38 transactions, with the largest share concentrated in the office sector, where they invested over EUR 191 million. The hotel sector followed, attracting nearly EUR 115 million, while commercial real estate transactions amounted to over EUR 94 million. Compared to previous years, domestic investment has grown significantly, increasing by more than 1 percentage point from 2023 and over 6 percentage points compared to 2019.

Despite this growth, Polish capital remains largely outside the institutional investment framework that dominates Western European and Central Eastern European (CEE) markets. According to Paweł Partyka, Head of Capital Markets Poland at Cushman & Wakefield, the rise in Polish real estate investment signals increased market maturity and professionalization. However, institutional investors from Western Europe are likely to return as capitalization rates decline, potentially limiting the market share of domestic investors. Without structural reforms, particularly the REIT Act, Polish capital could shift to alternative investment sectors rather than remaining in real estate.

Experts emphasize that legislative support, such as the REIT Act (SINN), would enable more structured domestic investment, creating long-term stability in the Polish real estate sector. By implementing a systematic investment framework, Poland could encourage sustained domestic involvement, reduce reliance on foreign institutional capital, and solidify the growth trajectory of local investors in the property market.

Source: Cushman & Wakefield Poland