In the first half of this year, the commercial property market in Poland saw a serious increase in investment, reaching a record high of €1.76 billion in the second quarter. For the whole of 2023, it was €2.1 billion. The Polish investment market has been dominated this year by two strong foreign players – the UK and the Czech Republic. Investors from the latter country are increasingly and more generously placing capital in the Polish property market. The growth over the last two years has been impressive.
The return of Czech investors, among others, to the Polish market after a difficult 2023 is the result of falling interest rates and better economic sentiment. And this always motivates buyers to invest. In the first six months of this year, the bulk of capital – as much as 73 per cent – came from Europe. Investors from the UK (34 per cent) and the Czech Republic (18 per cent) played a dominant role here. The latter are becoming a growing investment powerhouse on the Vistula. In mid-2022, the share of Czech investors in the Polish real estate market accounted for 7.6%. The jump is therefore very clear. Why?
Certainly, the watershed moment was the time of the pandemic – 2020-2022. The supply of Czech real estate for sale at that time was very limited, so investors went abroad. Even at that time (rapid price increases), the Polish market attracted relatively affordable prices and attractive yields (up to 8 per cent).
Poland’s economic stability has also been, and continues to be, an important factor attracting the attention of Czech investors. Poland has shown resilience in difficult times, guaranteeing strong growth, which continues to make our country an attractive place to invest in real estate. A solid basis for investment opportunities is also provided by a very well-developed infrastructure, which is not the norm in our part of Europe.
Experts in Poland predict that 2024 will see the commercial property investment market close at up to EUR 4 billion. This would be a clear signal sent to investors that the market has revived and is waiting for more investment portfolios. Will the share of Czech investors exceed 25% of all European real estate investments in Poland by the end of this year? This is very real.
Szymon Mojzesowicz – Polish real estate market expert
