In 2007, EUR 16 billion was invested in the sector of alternative properties; after ten years, in 2017, this value reached EUR 24 billion. The above result may have been the effect of favourable economic situation and the investors, having more and more capital at their disposal, have been showing more and more interest in alternative properties. Another cause of such state of affairs may be an increase in prices of typical properties and, at the same time, a drop in their availability. “On certain markets, such as Germany or the Netherlands, this type of investment has become a standard. In Poland, this trend has not yet been so strong, yet taking the benefits resulting from investments in such market into account, the situation may change in the course of the next years,” says Przemysław Felicki, Director in Capital Market Division, CBRE.
The Record Was Beaten!
Another record of transactions on the market of commercial properties was beaten in Poland. According to Savills, a consulting company, it is estimated that in the first quarter of 2018, the value of transactions reached approx. EUR 2.05 billion, which gives the amount of PLN 8.5 billion. With respect to commercial properties, the main area of interest of foreign investors who, in fact, constitute a dominant percentage, are commercial, warehouse, logistic and office areas. The most attractive regions for investors include Europe, the Middle East and Africa.
Still Undiscovered Dorms, Co-Working on the Top and Strong Developers
Investing in the so-called private dorms, i.e. student houses, the presence of which is still rare in Poland, is a popular investment practice of foreign investors. Co-working space is also a growing area of activity of Polish developers. In Warsaw, every newly-erected building is provided with such space. The trend also transfers to other large Polish cities, e.g. Wrocław, Kraków and Poznań. Almost 1/3 of investors surveyed by CBRE believe that co-working is the future of office work and, at the same time, a form that facilitates the life of residents of a building and people who live in the neighbourhood. It is also worth noting that a co-working space increases the value of a building.
In spite of a growth in transactions related to purchase of commercial properties, developers - whose apartments still enjoy unwavering interest - maintain a strong position. In 2017 only, approx. 2.3 million square metres of residential surface area was commissioned and subsequent 1.17 million square metres is under construction. Residential development in many countries has the highest share with respect to the value and the pool of properties, whereas in economically developed countries, it constitutes a certain investment offering guaranteed profit in the future. Experts emphasise that it is only a matter of time when dorms will become a standard alternative for the group of conventional investment assets, on a par with apartments.
Retirement Homes and Data Centres As New Types of Investment
Among commercial properties, growth is also recorded in the sector of construction related to health protection, leisure and entertainment, storage of food and parking sites. Przemysław Felicki also draws attention to two other areas: healthcare type premises will soon be the object of investors’ interest, which will also improve the quality of life. It is also noted that in the near future, there will be an increase in the popularity of Data Centres, which results from technological development of the country and requirements of the IT industry corporations that need billions of new units of network space on a daily basis.