The international advisory company, BNP Paribas Real Estate Poland, summarized the second quarter on the investment market, paying attention to the significant activity of investors, who made more diversified purchases from the sectors perspective. Among the significant factors which investment market is facing, there are geopolitical risks for the CEE region, rising costs of financing and generally deteriorating economic sentiment.
We are expecting a trend of decompression of yield rates, backed up by rising financing costs as well as concerns over the geopolitical situation. Moreover, such movements are already occurring on the Western European markets, which always herald the changes on our local backyard. In the coming months, questions about the sustainability of rental demand, will also impact the appetite of investors, who place money into real estate. All the above is taking place in light of high prices of commodities and construction materials, maintenance costs of the assets, construction & fit-outing costs as well as upcoming rent indexation.
comments Karolina Wojciechowska, Associate Director from Capital Markets at BNP Paribas Real Estate Poland.