A clear head for the challenges ahead

Is all the current market uncertainty actually fuelling investor interest in our country? Urszula Sobczyk, head of valuation, Newmark Polska: Despite the market challenges due to the geopolitical turmoil, the interest rate hikes, rising energy costs and soaring inflation, we are still seeing strong demand for Polish real estate from cross-border investors. The total commercial real estate investment volume for the first half of 2022 reached app. EUR 2.9 bln – a 16 pct y-o-y increase. However, some investors have adopted a wait-and-see approach, while others are taking more time to finalise transactions. At the same time, bargain hunters are becoming increasingly active. Industrial investment has accounted for almost half of the capital allocation to commercial real estate in Poland over the last two years. In the wake of the pandemic, the demand for warehouses was predominantly from e-commerce. And although online retail sales have somewhat weakened, they continue to enjoy a sta