PL

Poland Facing new challenges in 2023

Investment & finance
Savills has presented a preliminary summary of 2022 predicting key trends for the coming months. The commercial property market in Poland is facing uncertainty and rising prices but remains underpinned by strong fundamentals, which bodes well for the future, reveals Savills.

According to Savills, the war in Ukraine has resulted in limitations to supply of materials and shortages of construction workers, compounding the challenges of rising inflation and energy costs. Following the slowdown triggered by the COVID-19 pandemic, in 2022 the commercial real estate market had once again to face factors weighing on investor sentiment.

Due to the war in Ukraine, both non-local and risk-averse investors have again adopted a wait-and-see approach, which resulted in more subdued investor activity, with this year’s investment volume expected to remain at 2021’s level and lower than the forecast made earlier in the year.
Tomasz Buras, CEO, Savills Poland

Opportunistic investors and self-financing developers may be able to go bargain hunting, secure attractive land or redevelop and repurpose existing properties, says Savills. With the ageing stock of commercial space in prime locations and continuously evolving needs of building users, landlords will be increasingly driven to either upgrade or repurpose properties to make the best use of land and maximise returns. HBU analyses may reveal that older office and retail properties could be successfully repurposed as mixed-use projects, last-mile logistics facilities or residential buildings, leading to an increase in the development pipeline of such projects.

2022 has also seen an unprecedented growth in residential rents fuelled by rising mortgage costs and an amendment to Recommendation S. The shift away from home ownership towards renting, coupled with rising rents, is an incentive for PRS investors to enter Poland. Savills expects Poland’s PRS stock to double in the next 24 months. The current situation in the Polish residential market is also likely to boost the growth of student housing, with euro-denominated rents expected to become more common and to provide an additional source of financing for PBSA projects, says Savills.

Although no COVID-19 restrictions were put in place this autumn for the first time in two years, in-office attendance did not return to pre-pandemic levels. The Polish office market witnessed the emergence of the long-predicted supply gap in 2022. According to Savills, around 256,000 sqm of new office space was completed in Warsaw over the year, a fifth less than last year. New office supply in 2023 is expected to amount to just 60,000 sqm, the lowest figure on record. On the plus side, sublease inventory is on the rise again due to new market challenges, which could help bridge the gap.

Savills estimates that new warehouse supply will hit a record high of 5 mln sqm in 2022. Economic uncertainty has not dampened occupier demand for logistics space. This has, however, caused yields to move out and resulted in more restricted availability of financing for new projects. Savills expects that the industrial sector will lose none of its appeal for investors in the longer term as it has seen rents rise after several years of stability and is likely to see more rental growth.

In anticipation of an economic turnaround, it is positive to see that market challenges have not caused a shift away from ESG, which remains one of the key priorities for CRE leaders.
Tomasz Buras, CEO, Savills Poland

With rents denominated in the euro and rising service charges accounting for an increasing proportion of total office occupancy costs, even companies which now do not need to secure new leases at higher rental rates will also be impacted by inflation due to annual rent indexation. Faced with rising costs and the energy crisis, tenants will be looking for ways to make savings in 2023.

Landlords will, on the other hand, be more willing to invest in improving the energy efficiency of buildings by installing more modern and efficient systems and implementing ESG policies - these measures are expected to significantly reduce energy usage. Energy self-sufficiency and access to own renewable energy sources will be one of the key criteria in choosing a property for manufacturers reporting the highest energy requirements.

2023 will see companies begin preparations for reporting non-financial data under the CSRD, which will require them to publish not only sustainability information but also social data. As a result, companies planning long-term real estate strategies will no longer be allowed to disregard the social element. Savills also expects to see more engagement of landlords and tenants in green leases who will work together to develop solutions to achieve ESG objectives through better environmental management, cutting occupancy costs and support in efficient data collection for non-financial reporting.

Latest news

Retail & leisure

Czech Republic Atrium Flora managed by Cushman & Wakefield 

schedule 03 February 2023
Opr./edited by ANZ

Cushman & Wakefield took over the management of Atrium Flora in Prague’s Vinohrady district, a shopping centre owned by G City Europe.

Eurobuild FM

Poland Piotr Trzciński on the Polish investment market (Eurobuild FM)

schedule 02 February 2023
Eurobuild CEE

We are delighted to inform you that we are starting the fifth series of the Eurobuild FM podcast channel! Our first guest, Piotr Trzciński of Savills Investment Management, comments on the current situation and gives us his forecasts for the Polish investment market. 

Warehouse & industrial

Poland Work begins on Panattoni Łódź South II

schedule 02 February 2023
Opr./edited by ANZ

Panattoni has started construction work on Panattoni Park Łódź South II, which is to comprise 57,300 sqm and will be built in a single stage. The complex is to be BREEAM 'Excellent' certified.

Warehouse & industrial

Poland 7R Bydgoszcz ready for the next stage

schedule 02 February 2023
Opr./edited by ANZ

Polish warehouse developed 7R has leased out the entire first stage of 7R Park Bydgoszcz, which is now being prepared for expansion. The main tenant of the first phase is now Polish logistics operator Rohlig Suus Logistics, which has decided to lease another 3,000 sqm, bringing its premises in the park up to almost 16,500 sqm.

Investment & finance

WORLD Savills IM transacted EUR 3.6 bln in 2022

schedule 02 February 2023
Opr./edited by ANZ

Savills Investment Management transacted more than EUR 3.6 bln globally in private real estate equity transactions in 2022, including EUR 3.1 bln in Europe and EUR 540 mln in Asia. The investment platform completed 112 transactions across 14 countries in 2022, including around EUR 2.1 bln of acquisitions and EUR 1.5 bln of disposals, resulting in a net investment of app. EUR 600 mln.

Office & mixed-use development

POLAND OmniOffice to open in Warsaw Unit

schedule 01 February 2023
Opr./edited by NN

Polish serviced office operator OmniOffice has leased 3,090 sqm in Warsaw Unit from Ghelamco.

Investment & finance

POLAND Trigea buys second Panattoni park

schedule 01 February 2023
Nathan North
deputy editor

Czech real estate investor Trigea nemovitostní fond has acquired City Logistics Wrocław II from Panattoni for an undisclosed sum.

ESG

Europę The structure of energy consumption

schedule 01 February 2023
Opr./edited by ANZ

The concentration of population in rural areas, lower construction standards and less service-driven economy contribute to the divergence between the CEE region and Western Europe' structure of energy consumption - reveals Colliers new report “The Journey Towards ESG Compliance 2022/2023”.

Office & mixed-use development

Romania Bucharest attracts with competitive rents

schedule 01 February 2023
Opr./edited by ANZ

Around 500,000 sqm of office spaces are unoccupied in Bucharest, reflecting a vacancy rate of 15.2 pct. 50 pct of the total vacant spaces can be found in buildings developed over 15 years ago, most of them requiring investments to attract new tenants.

Warehouse & industrial

Serbia Leasing surges for CTP in Serbia

schedule 01 February 2023
Opr./edited by ANZ

Serbia’s emergence as a manufacturing base with a skilled cost-effective labour force in close proximity to neighbouring EU markets, is driving a surge in leasings and built-to-suit developments across CTP’s four industrial and logistics parks in the country.

Eurobuild CEE

Karol Bartos (1980-2023)

schedule 01 February 2023
Eurobuild CEE

It is with great sadness that we learn of the death of Karol Bartos, one of the most well-known and distinguished personalities on the Polish real estate market, to which he has made an immense contribution down the years. To his family and friends we offer our deepest condolences.

Events

Poland Poland up for MIPIM awards

schedule 01 February 2023
Opr./edited by JC

MIPIM announces the finalists of the MIPIM Awards, a real estate competition for completed or yet to be built projects around the world. This year, two Polish projects have been nominated in a total of three categories.

Investment & finance

Poland Greenman takes over Newbridge

schedule 01 February 2023
Opr./edited by JC

Ireland-based Greenman Group, the parent company of grocery real estate investment fund manager Greenman Investments, has expanded into Poland with the acquisition of retail asset manager and developer Newbridge Poland.

Office & mixed-use development

Romania Egis moves to America House

schedule 31 January 2023
Opr./edited by ANZ

French engineering and construction group Egis has leased 1,100 sqm in America House in Bucharest. The Romanian branch of the company will move into its new headquarters in the summer of 2023.

Warehouse & industrial

POLAND Record-breaking year for 7R

schedule 31 January 2023
Opr./edited by ANZ

The total value of properties divested in 2022 by 7R totalled more than EUR 430 mln - a record for the Polish warehousing developer.

Warehouse & industrial

POLAND Raben 1st into Hillwood Częstochowa-Miasto

schedule 31 January 2023
Opr./edited by NN

Raben Logistics Polska has leased 5,100 sqm in Hillwood Częstochowa-Miasto, becoming the first tenant to lease space in the city warehousing park, which is under construction.

Warehouse & industrial

Czech Republic CTP Prague North bigger and greener

schedule 31 January 2023
Opr./edited by ANZ

CTP is nearing the completion of a new building at CTPark Prague North. The new warehouse, with the working name D8.7B, will offer 32,000 sqm upon its completion in March 2023.

Green projects

Romania Towards a sustainable future

schedule 31 January 2023
Opr./edited by ANZ

Globalworth received 47 various ESG related certifications for its Romanian portfolio in 2022, among them LEED, BREEM, WELL Health & Safety and Access4you accreditations.

Office & mixed-use development

Poland GTC blooms in Warsaw

schedule 30 January 2023
Opr./edited by JC

GTC closed the year by achieving a very high occupancy rate for its office buildings in Warsaw. Particularly important for GTC's result was a contract-laden end of the year. The company signed office leases from its Warsaw portfolio for nearly 20,000 sqm, 34 pct of all transactions were new tenants.

Property and Facility Management

Poland Face to face with Savills

schedule 30 January 2023
Opr./edited by ANZ

Business Campus, an office complex in Katowice with a combined area of close to 50,000 sqm, has a new property manager. Its owner, a joint venture of the Czech fund INVESTIKA realitní fond and Luxembourg-based private equity investor Bud Holdings, has entrusted real estate advisory firm Savills to provide property management for the complex.

Latest in Investment & finance

schedule 02 February 2023

Savills IM transacted EUR 3.6 bln in 2022

Savills Investment Management transacted more than EUR 3.6 bln globally in private real estate equity transactions in 2022, including EUR 3.1 bln in Europe and EUR 540 mln in Asia. The investment platform completed 112 transactions across 14 countries in 2022, including around EUR 2.1 bln of acquisitions and EUR 1.5 bln of disposals, resulting in a net investment of app. EUR 600 mln.

schedule 01 February 2023

Trigea buys second Panattoni park

Czech real estate investor Trigea nemovitostní fond has acquired City Logistics Wrocław II from Panattoni for an undisclosed sum.

schedule 01 February 2023

Greenman takes over Newbridge

Ireland-based Greenman Group, the parent company of grocery real estate investment fund manager Greenman Investments, has expanded into Poland with the acquisition of retail asset manager and developer Newbridge Poland.

schedule 30 January 2023

Romania remains an attractive market

The total volume invested in income-producing real estate assets - office, retail, logistics and industrial spaces and hotels - in the Central and Eastern Europe returned to growth last year. According to Cushman & Wakefield Echinox experts, a positive evolution is mainly driven by the activity recorded in Romania and Slovakia.

schedule 26 January 2023

Arete not stopping after EUR 100 mln loan

Czech industrial real estate investor and developer Arete is to receive more than EUR 100 mln (CZK 2.5 bln) in financing for its portfolio from a consortium of banks made up of Česká spořitelna and Slovenská sporiteľňa.

schedule 26 January 2023

EUR 40 mln in debt financing for Trei

German residential and retail developer and asset manager Trei Real Estate has obtained EUR 40 mln in debt funding from Berlin Hyp.

schedule 26 January 2023

Investing in times of uncertainty

The investment volume of 2022 was shaped by five large deals, which accounted for 40 pct of the total result. Market liquidity fell by 27 pct, from a record 166 transactions in 2021 to 122 completed in 2022, according to experts at Avison Young.

schedule 26 January 2023

Develia sells Wola Retro

Develia has signed a preliminary agreement for the sale of Wola Retro office building in Warsaw. The buyer is WR Office, owned by an investment fund managed by Adventum Group. The sale price was set at EUR 69.8 mln, or app. PLN 328.6 mln.

schedule 25 January 2023

A heritage site for 1 percent

Szczecin is putting up for sale the building of a historic oil mill, which could be transformed into an interesting mix-use project. The property can be purchased with a 99 pct. discount on the net sale price.

schedule 24 January 2023

Enthusiasm remains high for Duodev 2

Second closing has been sealed for the Duodev 2 fund initiated by the Mestdagh and Mulliez families, proposing to invest in European real estate projects developed by Equilis. Six months after the approval of the first closing, the Duodev 2 fund continues its success.

schedule 23 January 2023

Immofinanz – S Immo merger moves closer

Austrian real estate companies S Immo and Immofinanz have signed a framework agreement to establish a joint process to review the further alignment, coordination, merger or other forms of integration across the two groups.

schedule 23 January 2023

Liberty Tower deal done

AT Capital Group has finalised the acquisition of a plot at the junction of ul. Grzybowska and ul. Żelazna in central Warsaw from Golub GetHouse, which was planning to develop the Liberty Tower hotel and residential development on the site.

schedule 19 January 2023

FLE picks up Kopernik Offices

FLE SICAV FIS has acquired its fifth office property in Poland – the Kopernik Office Buildings complex in Warsaw from DWS for an undisclosed sum.

schedule 19 January 2023

Olympia Tower changes hands

Bluehouse Capital has sold the Olympia Tower office building in Bucharest to Gibraltar-based investor Yellow Tree for an undisclosed sum.

schedule 13 January 2023

Colliers’ prognosis for the Czech market in 2023

According to Colliers, rising energy prices, construction costs and rents, the crisis of restaurants, pressure for ESG compliance and changes in the Prague high street are the main trends that will affect the Czech real estate market in 2023.

schedule 12 January 2023

7R sells to DWS

7R, a warehouse developer, and DWS, a global real estate manager, have closed a transaction for the transfer of ownership of 7R Park Poznań East II, a warehouse park with a gross leasable area of over 51,000 sqm.

schedule 04 January 2023

Adventum to add @Expo to its portfolio

Adventum Group has signed an agreement to buy the @Expo office complex in Bucharest from its developer Atenor for an undisclosed sum.

schedule 04 January 2023

EUR 1 bln of bonds issued by Berlin Hyp

Berlin Hyp has issued its first dual tranche of Social Pfandbrief and Green Pfandbrief bonds with a combined value of EUR 1 bln, Orders for the bonds are more than 3.5 times oversubscribed.

schedule 02 January 2023

Erste lends EUR 160 mln to Globalworth

CEE office investor Globalworth has secured two financing facilities for a combined EUR 160 mln from Erste Group.

schedule 29 December 2022

Immofinanz sells six more office properties to S Immo

S Immo has completed the purchase of a 124,000 sqm office portfolio in Budapest from Immofinanz for EUR 244.1 mln.

Categories