Industrial property accounted for 70% of the Q3 real estate investment volume in Poland. While the entire commercial property market attracted €1.05 billion, according to Savills, the industrial sector accounted for €740 million.
The firm said that this illustrates the current investor preference for logistics properties, particularly ecommerce facilities. Logistics investment in Poland amounts to almost €1.9 billion so far this year.
This compares to its previous highest volume of €1.8 billion in 2018. There has been an almost 200% increase in industrial transaction volume during Q1-Q3 2020 compared to the same period last year.
Tomasz Buras, CEO, Savills Poland, says: “2020 is already a record year for warehouses which have never before posted such a good result and are likely to remain the top-performing asset class in terms of commercial real estate investment volumes by the end of this year.”
He added that industrial properties have become the first choice for investors which has pushed prime yields down.
Office sector next most favoured sector
The next most favoured sector was offices, which turned over approximately €210 million in Q3 and €1.54 billion since the beginning of the year.
Savills said investment volumes across the property market for the full year are likely to exceed €6 billion, a 20-25% year-on-year decrease. Nevertheless, despite Covid-19 challenges 2020 will most probably be the third-best result in the history of the commercial real estate investment Buras said.