"Emerging Trends in Real Estate Europe 2013,” a report by consulting company PwC and Urban Land Institute (ULI) informs that Poland's capital is ahead of East-Central European cities, and Vienna, Rome or Madrid among others. However, it is a drop by 7 places in the ranking of investment prospects on real estate market.
The drop of Warsaw is caused by the fact that cities from economically stable countries, such as Munich, Berlin, Hamburg or London have improved their position in comparison to the last year's. Poland is still valued by world's investors. Not only is it a result of the size and harmony of the market, but also the good relation of price to quality. Additionaly, together with growing Polish economy (the 20th economy in the wolrd) and the development of the capital market, Warsaw is the business and financial centre of our region.- says Kinga Barchoń, PwC's Real Estate Team Executive.
As far as investment in new real estates is concerned, Warsaw took the 8th place, the highest from all East-Central European countries, but lower than last year's 6th place. In the ranking concerning prospects for developing activities, Warsaw took 6th place.
Investors, just as in the last research, expect the increase of Warsaw's importance to capital markets against other East-Central European countries. Essential arguments are the size of our market (Poland is the biggest country of the region) and realtively high economic growth. Poland is thought to be one of the most mature market of shared services in Europe, and 5th in the wolrd (Kraków is 11th, and Wrocław 78th according to „2012 Tholons Top 100 outsourcing destinations.” The perception of our country as an important logistic centre of Europe is also an advantage. Poland, because of its central geographical location, is the main point of distribution connecting Western and Eastern Europe. Moreover, we still use European Union funds to improve our road infrustructure – informs Kinga Barchoń.
According to investors, commercial segment will be the best investment in Warsaw. Second place is for office buildings.
First places in the ranking were taken by Munich, Berlin and London. Countries which experienced the financial crisis of 2008 most severely – Athens, Lisbon, Dublin, Madrid and Barcelona came last. Five years after the beginning of the financial crisis, investors still place their capital very carefully. They focus on cities of low risk in countries of stable economies – comments Joe Montgomerry, CEO of ULI Europe.
Investor's predictions for the future are rather pessimistic. Most of them do not think that 2013 will be better for real estate market in Europe. Main problems in the sector are low financial access and estimated 350-600 billion Pounds credit recess caused by structural limits on financing commercial real estates by banks.
According to PwC report, in 2013, real estate market should focus on companies from sectors such as telecommunication, media and technology (TMT) and creative enterprises.