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Winter 2009-2010
Poland Investment Bulletin Winter 2009-2010
- Total investment volume in 2009 is projected at €600 million, almost 70% lower than in 2008 and 90% down compared to the record year 2006.
- Until the last month of 2009, the office sector dominated investment transactions. As a result of late retail deals the share of the total volume for offices fell from 65% in 2008 to 50%.
- This indicates a brightening picture for the retail sector and is encouraging since there are more retail investments available for sale totaling over €2 billion. These should form the base for a significant resurgence in retail deals.Among the most active investors are mainly German, French, Spanish, Australian and Polish funds. The best quality properties are targeted by investors, with lot sizes of €30 – 70 million.
- Based on the limited deal evidence prime yields moved out to 6.75% - 7.25% for Warsaw CBD offices, 7.00% - 7.50% for retail in the largest cities and 8.75% - 9.50% for modern warehouses. These yields now apply to a narrower group of properties as investors are seeking only the best quality in terms of specification, visibility and location.
- Much of the attention of the larger investors has recently been focused on the maturer markets in Western countries where sharper re-pricing occurred and substantial discounts were offered in order to achieve sales. There are signs that this is starting to change as prices have recovered, which will lead to a re-evaluation by investors of the newer markets, such as Poland.
- Notwithstanding this, we anticipate that the current low-volume market can be expected to remain for at least the first half of 2010.
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CONTACT
Brian Burgess +48 22 330 06 34
bburgess@savills.pl
Marcin Purgal +48 22 330 06 56
mpurgal@savills.pl
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