Both Savills International and CB Richard Ellis have issued positive reports this week on the Polish property market. CBRE has just reported on the major slowdown of commercial real estate investment in Europe, which fell 18% in the year to end Q1 2012, and 31% on the quarter. Within the same quarterly market view CBRE reported declines everywhere in Europe except the Nordic region and Benelux, even in the CEE region which had previously been doing well volumes fell 65%.
But CBRE has not lost its faith in Poland despite the poor first quarter. The firm predicts that investment in Poland this year will match that of last year. This forecast is based on the number of on-going investment transactions, which amounted to €250 million in Q1 2012, and on the number of new inquiries received by CBRE. Colin Waddell, Managing Director of CBRE for Poland said:
“The new infrastructure improvements in Poland, such as ring-roads, highways, the railway and the new Warsaw metro line stimulate property market growth by creating new locations desired by developers in all market segments: office, retail and warehouse.
“Poland’s economic fundamentals remain strong with impressive GDP, high level of industrial output, strong export and outstanding level of retail sales. In 2012, the major concern for the Polish economy and the country’s property market is the turbulent Eurozone environment fuelled by the budgetary instabilities of many EU economies.”
Meanwhile another property giant, Savills International has issued an even more positive report on Poland. According to the firm investment in Polish property grew 21% year on year in Q1 to 728 million Euros, with foreigners accounting for 98% of the sales.
It is always interesting to compare the findings of real estate investment companies, but they rarely come up so close together in time and so far apart in their findings. Not that the data can be questioned coming from two such reputable sources, just that it will be interesting to compare their data again later in the year.
- Friday 11 May 2012