Reflection on the past ready for the future? Report CRIDO and CBRE

POLISH COMMERCIAL REAL ESTATE, 20 YEARS LATER... RE FLECTION ON THE PAST. RE ADY FOR THE FUTURE?

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crisis it was mainly players from Europe and the USA (Germany, Austria, Great Britain, France, the Netherlands) and local capital invested in Poland, in the last 8 years new sources of capital emerged: from Asia (Singapore, South Korea, China), the Middle East (Israel, Lebanon), and the CEE (especially the Czech Republic, Hungary, and the Baltic states). With the currently subdued investment activity caused by the geopolitical and economic situation, in particular a high interest rate environment, many players have refrained from investing in real estate, though not only in Poland - the down trend has been observed globally. The recently announced ECB’s interest rate cut by 25 basis points may lead to a gradual rebound of the investment activity in the coming quarters.

The activity of local capital depends on existing regulations and structures. Due to the existing form of REITs (Real Estate Investment Trusts) in the Czech Republic and Hungary, local players constitute a significant share in the annual investment volume. In 2023, Polish capital accounted for 9% of the total volume, and on average about 6% of invested funds come from Poland. In 2024, the Ministry of Development and Technology launched works on the introduction of Polish REITs (SINNs - companies investing in real estate rental market), which in over the next few quarters may give the market a chance for a greater diversification and create an opportunity for private individuals to invest their savings in the form of institutional and professionally managed products.

As other European markets show, when the global investment sentiment cools off, local players constitute a significant counterweight to international capital which often suspends its activities and limits its funding of real estate investments.