Polish commercial real estate market at the centre of investor focus
The volume of transactions concluded in the Polish commercial real estate market in H1 2011 was €960m, 23% up as compared to the corresponding period of 2010, according to a report drafted by Cushman & Wakefield (C&W).
Although the economic situation across the globe is unstable, the Polish market of commercial real estate attracts strong interest from foreign investors. The first half of the year saw them focusing on office and retail developments, with the former accounting for 55% of total transaction volume. The retail space market recorded an over three fold increase during this period when compared to H1 2010. The growth was mostly driven by the acquisition of the Promenada shopping centre in Warsaw by Atrium European Real Estate
in a €171m transaction. However, the warehouse space market recorded a decline in H1 2011 as its transaction volume dropped 36% year on year.
Investors who bought office space developments in Poland were mostly based in Germany and Austria, whereas foreign buyers interested in the retail property market generally came from the UK and the Netherlands. C&W says that the situation in the Polish commercial real estate market in the January-June 2011 period was stable, but it is cautiously optimistic in its predictions for the coming months. If the investment climate remains positive in the second half of the year, the full-year volume of transactions for 2011 can be approx. €2bn.
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