Poland is the largest investment market in CEE
More than half of CEE investment transactions are concluded in Poland
In 2014, around 120 transactions were concluded in the CEE region for a total value of EUR 10.5 billion. Over 50 percent of transactions (64 deals) were finalised in Poland. Their total value amounted to EUR 3.18 billion – according to data compiled by Colliers International.
Poland has thus become the leader in the investment market in Central and Eastern Europe, gaining a 30 percent share in value terms. Colliers noted that the average value of a single transaction in Poland amounted to EUR 50 million. The value of 11 transactions exceeded EUR 100 million (including seven portfolio transactions). “Such a large number of transactions demonstrates the high liquidity of the Polish market. At the moment, it is the largest investment market in CEE,” notes Piotr Mirowski, Partner and Director, CEE Investment Services at Colliers International. It is worth remembering that Poland is not only Warsaw. In addition to the capital, regional cities are also developing and attracting investors and investment funds. Last year, the share of regional cities in the investment market amounted to approx. 60 percent. Funds that invest their capital in Poland come mainly from the US, UK and Germany.
“Major buyers include: Blackstone, Starwood, Segro, Prologis, Hillwood, WP Carey, Hines and Resolution. The largest investor turned out to be Deutsche Asset & Wealth Management (formerly RREEF), which acquired property in Poland for a total value of EUR 0.5 billion,” calculated Piotr Mirowski of Colliers.
Colliers predicts that in 2015 the value of investment transactions will be similar to last year. Much will depend on the availability of property for sale. Regional cities will take up the liquidity and be characterised by rising prices. Among the buyers, we can expect a further influx of capital from the United States, as well as new investors from Canada, Australia, Korea, China and Singapore. What is important the ratings of the Polish economy issued by reputable international rating agencies are also very positive. Standard & Poor's (S&P) recently raised the outlook from stable to positive. Furthermore, Moody's rating has been A2 since 2002 and according to the agency this is one of the most stable ratings in Moody's.