In 2017, 75 investment transactions were completed and 150 commercial properties traded. EUR 2.6 billion (over 50% of the total market performance) was invested via portfolio and corporate/platform transactions, which highlights the ever-growing interest of large, pan-European and global institutional investors.
Warsaw remained the most diverse and liquid real estate market in Poland however, 75% of the transaction volume was invested outside of the capital city.
Warehouses and hotels with records
Investor demand was strong across all main asset classes with historical highs in the hotel – EUR 340 million and industrial sectors – EUR 1,1 billion. The record achieved on the industrial market is mostly due to the sale of Logicor – Blackstone’s European warehouse operations to China Investment Corporation, the biggest private equity real estate deal in Europe on record (EUR 12.25 billion), where the Polish portfolio of 28 industrial assets was valued at EUR 0.75 billion.
Investors and investment managers from the USA, South Africa, Germany and the United Kingdom have been the most active players in the Polish market in the last 36 months. German and USA capital had the highest share in 2017 with each accounting for 16% of the market share and each deployed EUR 0.8 billion last year. The activity of Polish investors remained marginal as work on REIT legislation was not finalized.
Increase of liquidity in 2018
In 2018, the market is expected to maintain its momentum fueled by consumption-led GDP growth and strong mid-term macro prospects for CEE.
“In 2018, we can expect a continuation of trends observed last year, including a further increase of liquidity and appetite for portfolios and platform transactions as well as continued interest in secondary and tertiary regional cities. Provided that commercial REIT legislation is agreed upon and passed in 2018 and this would add another dimension to the liquidity of the Polish market, given the pent-up demand among the domestic private buyers,” said Piotr Mirowski, Senior Partner at Colliers International, Head of Investment Services.