According to JLL, the volume of investment transactions on the Polish office market in 2015 amounted to over €1.27bn. Regional markets accounted for nearly €800m of this total.
Sławomir Jędrzejewski, national director, office and industrial investment at JLL, comments: “The volume of investment transactions concluded on major office markets outside Warsaw was nearly €800 million. This means that for the first time in Poland's investment market, the volume of office sales and acquisitions outside the capital city exceeded the office volume registered in Warsaw. Kraków accounted for the largest volume – almost €260 million”.
This result is due to a number of factors such as limited supply of office buildings available for sale in Warsaw, the availability of attractive investment products on regional markets along with higher yields compared to Warsaw.
The largest transaction of a single office asset outside Warsaw was Dominikański in Wrocław (€117m), while the largest portfolio deals included the acquisitions concluded by NIAM and Griffin Group (approx. 100 million each).
Although Poland saw commercial property investment reach €4bn in 2015 - the second highest volume on record – office market transactions declined recording almost 27% less than the year before. With significant supply entering the Warsaw market, putting rental levels under pressure, investors have move towards exploring regional cities.
