The situation on the investment land market in Poland is stable, though demand for the best locations continues to grow. Investors are most frequently showing interest in plots suitable for medium-sized developments – as follows from the “ViewPoint Land Market in Poland 2015” report drawn up by experts at CBRE.
“For the past two years we have witnessed a stabilizing trend on the land market, with minor variances in the market growth visible in respect of individual sectors. Prices for the best plots remain at a high level, where in turn less attractive land is becoming cheaper. Demand for the best land is high as proven by quick sales in this area and availability of funding through bank loans. Land’s attractiveness and its price are determined by factors such as: location, transport links, planning constraints, size and legal title,” said Maciej Wójcikiewicz, Head of Valuation Department at CBRE.
As regards the office investment land sector, the best land comprises plots located in city centres and the most popular office districts. The most expensive plots are understandably those located in Warsaw and the developing regional cities, such as Kraków and Wrocław.
Nonetheless, there is great interest in land dedicated to the warehouse and industrial sector, where dynamic growth on the land market has been witnessed for the past few quarters. In this case, the main factor determining whether a plot is attractive or not is its vicinity to existing or planned motorway junctions as well as the ability to find a tenant prior to commencement of the construction process.
As regards investment land designated for retail developments, developers examine the location in respect of current saturation of the neighbouring market with existing retail developments.
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