The number of transactions concluded on the Polish real estate market in 2019 increased by about 50% y-o-y, and doubled compared to 2017, CBRE advisory firm experts indicate. Additionally, in recent months, more and more amounts exceeding EUR 200-300m have been seen, while only a few years ago they appeared sporadically. This puts Poland, and especially Warsaw, on a par with the dominant European cities. The total value of commercial real estate transactions in Poland in 2019 exceeded EUR 7.7bn.
In 2019, the transaction amount is approximately 7% higher than in the previous year. This is noteworthy as 2018 was historically a record year in terms of volumes, and most forecasts indicated a slight slowdown in the market due to macroeconomic factors. Meanwhile, we are breaking further records. This is mainly due to the office and logistics markets, which enjoy the greatest interest from investors and continue to develop dynamically. Moreover, in 2019 a significant transaction was recorded in the retail sector. Additionally, everything indicates that 2020 will not be worse. Positive economic forecasts, low interest rates and strong foundations of rental markets allow us to forecast that it will continue to happen in the coming months – says Przemyslaw Felicki from CBRE, Director in the Capital Markets Department of CBRE.
Offices and retail facilities
As in the previous year, in 2019, the priority on the commercial real estate market in Poland was leased by offices – the total value of transactions amounted to a record EUR 3.8bn (49% of the total amount). The second place was taken by the retail sector with a value of EUR 1.9bn (25%). The volume in warehouses amounted to EUR 1.6bn (20%).
The highest amount in 2019 concerned retail facilities of the Cromwell group and amounted to 600m euro. Second place was taken by the sale of building A of the Warsaw Spire complex to Immofinanz by Ghelamco, for EUR 386m. On the podium was also a transaction between Atrium European RE, which received EUR 298m for Atrium Koszalin and Atrium Felicity from ECE Group.
At the moment, a significant number of transactions are underway on the market, only in Warsaw alone we observe preparations for several. We also see a large and constantly growing group of investors interested in Poland. Therefore, we can predict that in 2020 there may be further records, both in terms of volumes and price levels – says Przemyslaw Felicki from CBRE.