In 2016 investors were still interested in regional markets where over 70% of the capital was invested. Regional markets are expected to continue to grow in liquidity and appreciation among investors. Retail asset class dominated the investment volume with a 43% share, followed by offices at 40%. In these sectors the largest transactions of last year were reported:

• the acquisition of a Polish office&retail portfolio by Redefine for ca. EUR 900 million,
• the acquisition of Q22, 39-storey, an iconic, brand-new, ca. 54,000 m2 GLA office tower located in the Warsaw CBD by Invesco for EUR 273 million,
• the acquisition of Bonarka City Center – Kraków shopping centre by Rockcastle for a reported EUR 361 million.

South African investors dominated the market in 2016 with EUR 1.8 billion spent, accounting for a 40% of the overall share in the investment volume. Polish domestic capital was virtually non-existent with a 2% share.

“Poland maintains the leading position in the CEE region, which was further characterised in 2016 by ever-growing liquidity and upward pressure on pricing. Demand was equally strong across all asset classes in addition to an impressive appetite for corporate and portfolio deals with record-breaking transactions along the way. In 2017 we expect continued growth with new capital and investors entering Poland who are interested in all asset classes as well as platform/corporate deals”, said Piotr Mirowski, Partner and Director of CEE Investment Services at Colliers International.

Pricing for core assets, particularly in the office and logistics asset classes, continues to be primarily driven by the residual lease term.