Poland’s investment volume hits €2.88 billion in H1 2022

Cushman & Wakefield has released a summary of the first half of 2022 on the Polish investment market. In the first two quarters of the year, Poland’s total commercial property investment volume was 44 percent higher than in the same period last year. Below are other key summary findings.

“The Polish commercial real estate market entered 2022 with great momentum. Many large and low-yield transactions were closed in the first half of 2022, with more to follow till the year-end. Poland’s investment volume reached €2.88 billion in the year to date, 15% above the five-year average,” comments Paweł Partyka, Partner, Capital Markets, Cushman & Wakefield Polska.

Investment activity remains relatively high; however, due to changing macroeconomics, the number of newly launched sales is limited as market players are redefining their investment strategies.

Key market fundamentals are improving gradually, with industrial vacancy rates hitting all-time lows and the Warsaw office market likely to experience an undersupply in the coming 18-24 months that will put upward pressure on office rents. The rental growth prospects are already encouraging investors to increase activity, which is likely to lead to investment volume normalization.

“Banks’ appetite for financing acquisitions of stable and long-term income-producing assets remains steady – so are bank margins. In the case of prime properties with high occupancy rates and long WAULTs, bank margins are likely to be lower than a few months ago,” adds Mira Kantor-Pikus, Partner, Capital Markets, Cushman & Wakefield Polska.

High inflation in Poland and other EU countries has led to higher key interest rates and higher costs of loan securities. Interest rates are likely to remain high for longer, impacting property yields in the near future.