Despite the ascent in capitalization rates and prevailing global uncertainties, investors have executed agreements exceeding 741 million euros—a figure surpassing fourfold that of the preceding quarter in 2023. The propelling force in the market remains industrial and logistics real estate. However, the initiation of concrete purchase decisions and fresh transactions may necessitate patience until the commencement of the forthcoming year.
Investment activity increasing despite challenges
While the prospects for the future are promising, decisions on concrete purchases and new transactions will likely be deferred until at least the beginning of the next year. Warehouse properties persist as focal points for investors, although retail park formats are also garnering attention, primarily due to their attractive price levels and high market liquidity
evaluates Mateusz Skubiszewski, Head of Capital Markets Department, BNP Paribas Real Estate Poland.
The majority anticipates no swift reductions in interest rates in Europe, which are likely to remain stable or experience slight increases in the upcoming quarter. The recent interest rate cut in Poland, contrary to the European Central Bank, is unlikely to alleviate the situation, given that the majority of investment loans are denominated in euros. Simultaneously, amid economic turbulence on the continent, the European Central Bank intensifies scrutiny over such loans. Consequently, one can anticipate that banks will adopt a more stringent approach to risk assessment and project profitability. Nevertheless, the long-term fundamentals of the national economy remain robust, with the public debt-to-GDP ratio standing at 49%, well below the eurozone average of 91%. Furthermore, last year, Poland ranked among the top in Europe in terms of the number of foreign greenfield investment projects, securing the 5th position, largely attributed to the implementation of international companies' 'nearshoring' policy, positively impacting the local market
comments Marta Gorońska - Wiercioch, Associate Director, Capital Markets DepartmentBNP Paribas Real Estate Poland.