Poland can reach the highest volume of investments in 7 years

At the end of the year the value of commercial property investment transactions in Poland can reach 3 billion euro.

This year can be record-breaking in terms of the value of investment transactions in commercial property. According to the newest report by Savills, the value can reach even 3 billion euro, which is the highest result since 2006. In the first half of 2013 there were 28 transactions amounting in total to 1.26 billion euro. For comparison, in the first half of 2012 there were only 12 transactions. Preliminary sale-purchase property contracts in total amounting to 850 m euro have been signed since the beginning of this year.

51 percent of all transactions in the first half of 2013 were related to the office market. Still, the experts from Savills find the commerce market the most popular, with transactions amounting to 475 m euro and a great potential of growth in the second half of the year.

We expect that the total value of investment transactions on the storage market at the end of the year will reach 10-12% of market share, nearly twice as much as long-term average. Commercial property will amount to nearly 70% of annual value of investment transactions, which will result in decreasing share of attractive office facilities on the investment market. Thus, the predicted share of the office sector in total value in 2013 will amount to 20-30% - says Michał Ćwikliński, Head of Investment at Savills Poland.

Warszawa is still the preferred area of office transactions, with 11 out of 14 transactions in the period. Experts form Savills point out that some areas of the city, e.g. Mokotów district enjoy less interest mainly because many investors have already located their assets in the region. Capitalization rate in Warszawa amounts to 6 percent. Outside the Polish capital, investors were active in Wrocław and Tricity, as well as in Kraków and Poznań. Capitalization rates for the best properties in those cities amounted to 7.5-7.75 percent.


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