Savills forecasts record property investment in Poland

The Polish real estate market is expected to generate a record investment volume of €3 bn in 2013, property adviser Savills has predicted.

This would be the highest volume since 2006.

Savills said that retail property will account for about 70% of the full-year volume.

While retail has emerged as the most popular sector so far in 2013 with €475 mln traded in H1 and a significant increase on that figure expected in H2, offices have in fact accounted for 51% of transactions in H1 2013 but that proportion is expected to decline by year-end.

Transactions in the warehouse sector, which peaked in 2012 totalling a 17% market share, are anticipated to remain above average (6.2% between 2002-2011) at 10-12% by year-end.

The firm states that H1 2013 saw over €1.26 bn transacted, comprising 28 transactions compared to 12 in H1 2012.

A further €850 mln of deals have also been signed this year in the form of preliminary sale and purchase agreements which should complete before year-end and these, combined with a number of pending deals, will boost the 2013 investment volume.

Michal Cwiklinski, director of investment for Savills Poland, said: 'The total volume of warehouse investment transactions by year-end is expected to be in the range of 10-12%, almost double the long-term average. Retail assets will account for up to 70% of the annual volume reflecting the shrinking supply of decent investment product in the office sector which may only account for 20-30% of market share as a proportion of the entire 2013 volume.'