According to data from global real estate services firm Cushman & Wakefield, Poland’s commercial property investment volume hit approximately EUR 5 billion in 2024, marking a strong rebound of around 140% year-on-year. Additionally, Polish capital significantly increased its share of investment activity, with transactions totalling EUR 444 million last year – an almost threefold rise from 2023. However, for this momentum to continue, systemic solutions such as the adoption of the long-awaited REIT legislation are necessary. If implemented, these measures would help prevent a potential outflow of Polish investors from the real estate market, especially when yields begin to harden.
With 38 investment transactions totalling EUR 444 million, Polish capital played a significant – though not yet dominant – role on the commercial real estate market in 2024. Domestic investors raised their share of the total investment volume last year to 8.8%, up by over 1 pp on 2023 and over 6 pp from 2019. The best-performing sectors were offices (over EUR 191 million), hospitality (approx. EUR 115 million) and retail (over EUR 94 million).
"The EUR 444 million worth of investment transactions reaffirms that Polish investors are stepping up their investment activity and becoming increasingly professional on the commercial real estate market. Looking ahead, this trend is expected to continue in the long term, particularly in value-add investments that offer higher rates of return. However, Polish capital still largely operates outside institutional frameworks that have a significant impact on real estate investment volumes in Western and other CEE countries. As a result, despite the growing momentum from private Polish investors, their percentage market share is likely to remain modest – especially when the investment market rebounds more strongly. At that point, institutional capital from the West will flow back into Poland, with yields moving in. This may prompt Polish investors to seek higher returns outside the real estate sector," comments Paweł Partyka, Head of Capital Markets Poland, Cushman & Wakefield.
According to experts, the adoption of the long-awaited REIT legislation could lead to significant improvements by providing a clearer framework for real estate investment and giving an impetus to Polish capital to scale up investments.
"Given the enormous non-interest bearing deposits of Polish households, a new investment instrument offering stable dividends linked to safe assets such as commercial real estate could be an attractive addition to currently available options. Real estate investment products – whether in the form of REITs, loans or collective saving schemes – are highly popular across Europe, both in Western and CEE countries, particularly in the Czech Republic, Germany and France, where real estate markets rely heavily on local capital. REITs, along with the increasing momentum from Polish investors, are expected to drive the growth of the private rented sector, especially in smaller towns. However, because of their maturity, the office, warehouse and retail markets could also benefit from the establishment of REITs thanks to the inflow of local capital and new investors," concludes Mira Kantor-Pikus, MRICS, EMBA, Head of Equity, Debt and Alternative Investments, Cushman & Wakefield.