Between January and June 2023, investors spent more than EUR 800 million on Polish commercial real estate - four times less than a year ago. Investment volumes in the second quarter remained under strong pressure from interest rate hikes and rising treasury bond yields across Europe. The Polish investment market was dominated in the last six months by industrial and logistics transactions, with Poland among leading European countries by the number of new development projects breaking ground in this sector.
Despite rental growth, property owners are struggling to maintain capital values and to exit investments with satisfactory returns as yields continue to move out at a rapid pace
Marta Gorońska-Wiercioch, Associate Director, Capital Markets, BNP Paribas Real Estate Poland.
We expect prices for most asset classes to stabilize by the end of the year, which should improve the chances of a swift price discovery and become a catalyst for new transactions
says Marta Gorońska-Wiercioch
Interest rates
This trend could be reversed by putting a quick end to the interest rate tightening cycle across Europe - a move not expected until late 2023
Bolesław Kołodziejczyk, Business and Data Director, Business Intelligence Hub & Consultancy, an expert with responsibility for market analyses and research and strategic consulting