In the East, a new world. With better economic growth than in Belgium, the country is also a godsend to real estate investors. Last year’s professional real estate investments reached a new record.
Last year, the total amount of professional real estate investments in Poland reached €7.2 billion, according to the report “City report Q4 2018” published on the city of Warsaw by the professional real estate broker and advisor JLL. An “impressive result”, comments JLL, in that it exceeds by almost 2.2 billion the previous record in this field, established in… 2006.
$2.75 billion was invested in the office sector, $2.47 billion in the commercial sector, $1.84 billion in the industrial sector and approximately $120 million in the hotel sector. Among the flagship deals of 2018 was the sale of half of Ghelamco’s Warsaw Spire Tower (Warsaw) shares to Madison International Realty for €175 million.
Driven by the office market
“The year 2018 was a resounding success for the office market in Warsaw, a trend that nothing seems to slow down in the future“, JJL notes in his report. “Demand is soaring, the vacancy rate is at its lowest point since 2012 (8.7%) and is likely to decrease further, the new supply is completely absorbed by the market and rents are constantly rising.”
These vary, in the capital and in the office segment, from €120 to €180/m2/month in the outlying business districts, to €180 to €250/m2/month in the CBD and the city centre. In the case of housing, the purchase price ranges from 1500 to 2500 euros/m2 in the first and second peripheries to around 5000 euros/m2 in the heart of Warsaw.