Regional and domestic investors increase their exposure to Polish real estate
Regional investors and domestic buyers are playing a growing role in Poland’s real estate market as cross-border capital within Central and Eastern Europe expands and Polish businesses increase their exposure to institutional assets.
Speaking to Real Asset Media after a CEE investment briefing held at the CMS offices in London, Michał Mieciński, partner in the real estate and construction team at CMS, said the event brought together leading industry panellists and highlighted both the market’s growing maturity and the shift in capital sources.
“One of the subjects we’ve been discussing was the source of capital, and we see regional capital being more and more important.”
He noted that neighbouring countries are increasingly active in Poland. “For example, Czech investors investing into Poland, Lithuanian investors investing into real estate in Poland. So, we see this intra-regional cooperation and investment opportunities.”
However, a long-delayed policy change continues to weigh on the market. “Unfortunately, we don’t have REITs in Poland, and work on that structure has been suspended so far by the Polish government,” he said. “We still do hope that this will return, and eventually we’ll have REITs in Poland.”
Despite that absence, domestic buyers are increasingly active. “In the recent year, we see significant increase of Polish capital into real estate transactions. Compared to last year, when it was roughly 10% of all investments in Poland, this year it’s roughly 25%,” he said.
The trend is visible across multiple sectors. “So, we see Polish businesses investing into institutional real estate, into offices, but also other sectors.”
