In 2024, Poland’s commercial real estate investment market saw over 120 transactions finalized, with a total value exceeding €4.8 billion. This represents an impressive 136% increase in volume compared to 2023 and a 1.5x rise in the number of transactions. While this result approaches the annual averages of €4.6 billion recorded between 2015 and 2017, it is still almost 30% below the peak average of 2018–2022, the most active period in Poland’s investment market.
Diverse Investment Sectors
The office and retail sectors each accounted for a comparable share of the total investment volume in 2024, at 34.4% and 33.9%, respectively. The high share of the retail market was largely driven by three major transactions totaling approximately €1.063 billion. The industrial and logistics sector contributed over 26% to the total volume, with additional activity in the hotel, purpose-built student accommodation (PBSA), and build-to-rent (BtR) or private rental sector (PRS) markets.
“The 136% increase in investment volume compared to the previous year clearly signals a recovery in investor confidence in Poland’s commercial real estate market. Key transactions in the office, retail, and living sectors demonstrate diverse strategies, with investors increasingly recognizing the potential of both major regional cities and niche segments like student accommodation and PRS,” said Mark Richardson, Head of Investment at Savills.
A Record-Breaking Fourth Quarter
Nearly half of the total investment volume (48%) was achieved in the last three months of 2024, reaffirming the traditional year-end surge in activity. Notable transactions over the year included the sale of a 49% stake in CPI to Sona Asset Management, and the sales of Silesia Shopping Centre in Katowice and Magnolia Park in Wrocław, both finalized by Nepi Rockcastle in the fourth quarter.
Investor Profiles and Market Entrants
Domestic investors accounted for approximately 10% of transactions, acquiring properties worth nearly €500 million across over 40 deals. These included three office buildings for public institutions. Investors from other Central and Eastern European (CEE) countries (including Ukraine and the Baltic states) contributed around 20% of the volume, while South African investors accounted for over 20%.
2024 also marked the entry of new investors into the Polish market. Among them were South Africa’s Emira Property Fund, which acquired a 25% stake in DL Invest; the UK’s Sona Asset Management, which invested in CPI Property Group by purchasing a 49% stake; and Estonia’s Summus Capital, which acquired two office buildings.
Optimistic Outlook
The results achieved in 2024 indicate a gradual return to investment levels from 2015–2017, with a clear upward trend. The high activity of international investors and sector diversification underscore Poland’s attractiveness in the CEE region.
“The office sector regained its appeal in 2024, evident from the number and value of transactions. Growing interest in buildings in regional cities reflects the market’s maturity. Meanwhile, the living sector is gaining prominence, driven by increasing demand for student accommodation and rental housing, particularly among young people and international students. We anticipate this trend to continue in the coming years,” commented Jacek Kałużny, Head of Operational Capital Markets at Savills.
Focus on Offices
In 2024, approximately 45 transactions in the office sector were completed, totaling over €1.64 billion (€1.34 billion in Warsaw and €298 million in regional cities). This represents a nearly fourfold increase compared to the previous year. Most transactions involved properties in Warsaw, but investor activity was evident across all major office markets in Poland.
Some office buildings were acquired for full or partial use by new owners, such as three buildings purchased by public institutions and properties at Mazowiecka 2/4, MatchPoint, and Bokserska Office Center. Other investors purchased office buildings intending to redevelop the sites for residential use, such as Curtis Plaza and three buildings in the myhive Mokotów complex.
Investment activity in the office sector highlights the strong interest in prime Warsaw locations and the growing appeal of regional office markets in Poland.
Focus on Retail
Retail investments in 2024 exceeded €1.6 billion, with over €1 billion coming from three major transactions. These included the sale of a six-center portfolio to Star Capital Finance for €285 million.
Investors continued to focus on retail parks and smaller convenience properties. Examples include the sales of BIG Gorzów and Glinianka retail parks to Big Shopping Centers and Pasaż Grodziski and Pasaż Kępiński to Falcon Investment Management. Smaller assets included Smart Park Syców, purchased by Saller Group, and Smart Park Zgorzelec, acquired by Newgate Investment.
“Retail parks and convenience properties remain in demand, reflecting shifting consumer preferences toward shopping closer to home. Last year’s stable performance of the retail sector, despite challenging market conditions, underscores its resilience and growth potential,” said Richardson.
Big Shopping Centers was the most active investor by transaction count, adding four properties to its portfolio. Nepi Rockcastle, with two major acquisitions, invested the largest sum in the retail sector.
Focus on Warehousing and Industrial Properties
In the warehousing and industrial sector, approximately 30 transactions were completed in 2024, slightly up from 26 in 2023. The total transaction value reached nearly €1.26 billion, a 27% year-over-year increase, making it the third-largest sector by volume and transaction count.
Most deals involved modern logistics facilities in strategic locations, highlighting Poland’s enduring appeal as a logistics hub in CEE. Significant growth in this sector is expected in 2025, particularly with Ares Management Corporation’s planned €3.7 billion acquisition of GLP Capital Partners Limited’s international portfolio, part of which includes Polish assets.
Focus on Rental Housing and Student Accommodation
The living sector reached €141 million in 2024, encompassing both forward funding transactions and existing property acquisitions. One standout deal was Xior Student Housing’s purchase of the LivinnX student residence in Kraków (now Basecamp), representing about 20% of the sector’s annual volume. This acquisition expanded Xior’s Polish portfolio to four properties, with further acquisitions announced for early 2025.
Key build-to-rent (BtR) transactions included Van der Vorm Vastgoed’s purchase of a property at Siennicka 29A in Warsaw and Lew Invest’s acquisition of Wrocławska 53J in Kraków. Investors such as Griffin Capital Partners pursued forward funding projects, including LifeSpot at Ostrobramska 86 in Warsaw. Additionally, Nrep acquired a property on Nocznickiego Street in Warsaw to develop rental housing in partnership with a local firm.
A highlight of the year was the launch of a private student accommodation platform by Signal Capital Partners, Griffin Capital Partners, and Echo Investment. The joint venture aims to create a portfolio of 5,000 student housing units within 3–5 years.
Kałużny noted that investors are actively pursuing land acquisitions for new PBSA and PRS projects, particularly in Warsaw and other major academic centers in Poland.
Source: ManagerPlus.pl
