Industrial assets count for around 70 per cent of total Q3 Polish investment volume, says Savills

Polish commercial property market investment volume is estimated to have reached EUR1.05 billion in Q3 2020. According to real estate advisory firm Savills, the industrial sector accounted for EUR740 million, approximately 70 per cent of that total.

The industrial sector has already posted the strongest annual performance ever in Poland. Logistics investment hit almost EUR1.9 billion this year so far. Its previous highest volume of EUR1.8 billion was recorded in 2018. The industrial sector also saw an almost 200 per cent increase in transaction volume in Q1-Q3 2020 compared to the same period last year.

Tomasz Buras, CEO, Savills Poland, says: “2020 is already a record year for warehouses which have never before posted such a good result and are likely to remain the top-performing asset class in terms of commercial real estate investment volumes by the end of this year. Industrial properties have become the first choice for investors, boosting investment demand, which in turn has pushed prime yields down.”
The runner-up was the office sector, which turned over approximately EUR210 million in Q3 and EUR1.54 billion since the beginning of the year. In Q3 2020, the total commercial property investment activity in Poland across all sectors (EUR1.05 billion) fell by approximately 12 per cent compared with the previous quarter.
“We estimate that the full year transaction volume is likely to surpass EUR6 billion, which will represent a 20-25 per cent year-on-year decrease. And yet, despite Covid-19 challenges, it will most probably be the third-best result in the history of the commercial real estate investment market in Poland,” concludes Tomasz Buras, Savills.