Investment market in Poland recovers
With over € 1.3 billion transacted until August 2010, the Polish investment market is again on an upward trend.
Polish Properties reports increased investment activity across all sectors; the total investment volume in the first seven months of 2010 exceeded the previous years figure and is only 29% lower than the 2008 result. Additionally, preliminary agreements have been signed in respect of investment properties valued at around € 110 million.
Interestingly, the industrial market is gaining in importance reaching a 21% share of total investment volume. In 2009 the corresponding share was only 7%. However it is the office sector which continues to experience the highest demand (50% share in total volume). The high investment volume has been generated by two portfolio transactions accounting for 50% of the total investment volume. In Q2 2010 Europolis sold its office and warehouse portfolio and in Q3 the sale of Arkadia and Warszawa Wileńska retail centres was closed by Simon Ivanhoe.
Along with the growth investment activity in Poland, we are also witnessing a shortening of sales negotiations and yield compression. According to Polish Properties, prime office yields are at around 7% to 7.25%. Yields in respect of prime retail properties at at above 6% and warehouses are fetching 8.5% to 8.75%.