Nery Alaev

Investors outside of Europe grow in strength for Poland

Nery Alaev writes about real estate in Poland.

In Poland, investors from outside of Europe are beginning to grow more influential. This is partly thanks to the central European country’s maturing real estate market, which has attracted high volumes of capital in recent years.

High volumes

The first quarter of 2016 saw nearly 20 transactions with a total volume of €504m recorded on the Polish investment market according to Colliers International.

Nery Alaev

Warsaw, Poland

According to an article from Europe Real Estate, Transactions with a value of at least €1.26bn will be finalised in the second and third quarter of this year, the largest of which (over €890m) will be the acquisition of shares in Echo Prime Properties by Redefine – the largest transaction in 2016 in Europe.

Also, according to the article, the past three years has seen US, German and British funds invested the most in Poland, but 2016 will see an increase in the importance of investors from outside Europe, including South Africa, South Korea, China, Singapore and Australia.

What has brought this interest about? Commenting on the news, Piotr Mirowski, partner at Colliers International and head of investment advisory says:

“The Polish investment market continues its purple patch. The volume of transactions in 2015 reached a record value of €4.1bn – the highest since 2007. Investment transactions carried out in Poland account for 45% of the Central and Eastern European market, including Russia. 

At the same time, though, this is only 1% of the total European market, where the total value of transactions in 2015 reached €300bn. 

However, the fact that the Polish investment market is no longer limited only to Warsaw is encouraging – more than 85% of the value of transactions in 2015 was completed outside Warsaw. This confirms the growing confidence of investors in Poland as a stable, relatively mature market “.

Piotr Mirowski’s comment indicates that Poland, like its neighbour Germany, is becoming a more mature market. This is further vindicated by the expectation that several different asset classes of Polish real estate including office, warehouse, hotel and residential, are to gain more interest and see the value of purchases increase.

Nery Alaev

Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.