Foreign investors favor the development of real estate Polish market

Foreign investors favor the development of real estate Polish market

Foreign investments of 728 000 000 euros formed the largest part of the real estate market in Poland in Q1 2012. That is 21% more than in Q1 2011, according to Savills statistics. Мore than 98% of transactions in Q1 2012, were conducted by investors from United States, Austria, Germany and UK. With such activity of foreign investors the Savills company expects rapid growth of the market.

The retail share is about 80% of all real estate market in Q1 2012, according to Savills statistics. The biggest transaction was "Golden Terraces" (Zlote Tarasy) buying. That is a trade center in the center of Warsaw inclusive 66,200 square meters of retail and 47,300 square meters of office space.

GDP growth in Poland stimulates investor’s activity, according to Michal Tsviklinskii, the head of Savills Investment Company in Poland.

The yield from office property in central Warsaw, is about 6,00–6,25%; in non-central areas – 6,75%; in major regional cities – 7,50%. Industrial profitability is about 7,50–7,75%, while in the retail sector yields remained the same: 6,00% in major regional cities, and 7,00–7,50% in small towns.

Michal Stepien, senior consultant in Savills research group in Poland, noted that Warsaw still remains the most popular market for investors in Poland and the company expects that the office real estate in the capital still will be the most popular product on the market.

Source: http://www.internationalresidence.ru/rus/news/6050.html