Valuation & Advisory Services at Colliers International recorded an increased demand for property valuation in the first half of 2015. “The number of inquiries increased by tens of basis points and involved more than 500 properties,” said Ewa Czarnecka, partner and director at the Valuation & Advisory Services, Colliers International.

The structure of the demand by the purpose of valuation is very similar to that seen last year. Almost 60 percent of inquiries involved valuations for property financing and refinancing purposes. Inquiries about valuations for the purposes of purchase/sale transactions, for internal business purposes and for financial reporting accounted for approx. 35 percent. The next 5 percent concerned valuations for other purposes, such as tax-related purposes or for the verification of resources. “Except for large portfolios (more than 20 properties), the inquiries in 2014 concerned mostly warehouse and manufacturing properties. Retail and office buildings followed in terms of percentage. The lowest demand, less than 5 percent, was then recorded for valuations of hotel properties,” added Ewa Czarnecka.

The structure changed in 2015 — the demand for valuation of hotel properties increased considerably to reach approx. 10 percent of all inquiries. The demand for valuation of housing development projects is also on the rise. They accounted for approx. 10 percent of all inquiries. Growth was also recorded in inquiries regarding retail property valuations — their share constituted approx. 25 percent. The number of inquiries for warehouse property valuations, on the other hand, fell below 15 percent. Interest in office property is also declining. Their share is now already below 20 percent. The level of interest in valuations for mixed-use projects was similar to that last year. “Compared to the previous year, we receive more valuation inquiries directly from financing institutions than from owners and property developers,” concluded Ewa Czarnecka.