Nery Alaev writes about Polish real estate.
Poland’s commercial real estate market has benefitted from a buoyant economy in the country with real estate transactions amounting to €4.1bn. This volume is the highest since 2006 and more than €1bn more than the same period in 2014.
I’ve chosen to look into the news and find out more.
Varying degrees of strength
Office and industrial markets in the country saw record amounts of leased space, whereas retail markets gained large amounts of new space. The data comes as part of a wider global report from Colliers International that sums up 2015 as a whole across the world.
Poland leads the CEE region (central & eastern Europe), characterised by growing liquidity and “upward pressure on pricing.
In 2015, Poland saw a high demand for ‘land sites’ – these are plots of land destined to house new buildings and developments.
The demand for ‘land sites’ implies that Poland is beginning to rapidly expand its property market into new areas. These new areas are overwhelmingly in bustling capital Warsaw, which accounted for 70% of purchases.
Of this, 70% of purchases were residential – this suggests growth in new suburbs and neighbourhoods in and around the country’s capital, which is home to 1.7m people.
As for office space across the rest of the country, results are similarly positive. During 2015, 7.5m2 of office space was present in the nine major markets across the country – nearly 600,000m2 was completed in 2015. Of this total, over half was in Warsaw.
Clearly residential and commercial property markets alike are growing in Poland. Record-high demand compliments this, pointing towards a strong upward trend for Polish real estate in 2016. This trend bodes well for investors across all asset classes.
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.