2018 was the year of offices and warehouses – EuropaProperty

The Polish commercial real estate market is in the best shape it has ever been, posting a record-high investment volume that exceeded EUR 7 billion in 2018. Office and industrial sectors, in particular, are setting new highs with last year’s trading volumes at nearly EUR 2.6 billion and nearly EUR 1.9 billion, respectively.

As anticipated by global real estate services firm Cushman & Wakefield, the Polish commercial real estate market delivered a record-breaking year in 2018 with its total investment volume surpassing the EUR 7 billion mark, the highest level in its history dating back to 2000. The highest ever volumes were posted in the industrial and office sectors: nearly EUR 1.9 billion and nearly EUR 2.6 billion, respectively. The retail volume hit EUR 2.5 billion, coming close to the level recorded in the peak year 2006.

The office market experienced the strongest increase in investment activity, with volumes ahead by almost 88 percent compared to 2017 and accounting for 37 percent of 2018’s total. The industrial sector was the second fastest growing sector of the commercial property market with the investment volume up by 72 percent. More than 3.2 million sqm or 20 percent of Poland’s total industrial and warehouse stock changed hands throughout 2018. The retail trading volume rose by 33 percent, accounting for 36 percent of the total investment volume recorded in 2018. With all transactions closed, prime office and retail yields in Warsaw hit record lows: 4.75 percent and below 4.5 percent, respectively.

In 2019, the industrial and office markets are expected to continue to enjoy strong investor demand with shopping centres likely to figure on investors’ radar in the second half of the year.