Saturday, 15 March 2025
The Polish commercial real estate investment market witnessed a remarkable resurgence in 2024, with more than 120 transactions totaling over EUR 4.8 billion. This represents a 136% increase in transaction volume compared to 2023, with the number of deals growing by 50% year-on-year. While this performance nearly matched the 2015-2017 annual average of EUR 4.6 billion, it remains around 30% below the record-breaking levels observed between 2018 and 2022.
Diverse Investment Sectors Drive Market Growth
The office and retail sectors accounted for the largest shares of investment activity in 2024, representing 34.4% and 33.9% of the total volume, respectively. Notably, three major retail transactions—worth approximately EUR 1.063 billion—significantly boosted the sector’s performance. The warehouse and industrial sector contributed over 26% to the total investment volume, reflecting sustained interest in logistics properties. Investors also showed growing interest in hotels, purpose-built student accommodation (PBSA), and institutional rental housing (BtR/PRS).
“The substantial 136% increase in investment volume demonstrates investors’ renewed confidence in the Polish market,” said Mark Richardson, Head of Investment at Savills. “Key transactions across multiple sectors highlight investors’ diverse strategies, with a focus not only on prime locations but also on niche segments such as student housing and institutional rentals.”
Record-Breaking Fourth Quarter
The final quarter of 2024 proved to be the most active period, accounting for 48% of total investment volume. Major deals during this time included the sale of a 49% stake in CPI Property Group to Sona Asset Management, as well as the acquisition of two major shopping centers—Silesia Shopping Centre in Katowice and **Magnolia Park in Wrocław—**by Nepi Rockcastle.
Investor Landscape and Market Entrants
Domestic investors were responsible for around 10% of the total transactions, investing nearly EUR 0.5 billion across more than 40 deals. Their purchases included three office buildings designated for public institutions. Meanwhile, investors from Central and Eastern Europe, including Ukraine and the Baltic states, accounted for 20% of total transaction volume, while South African investors contributed over 20%.
New investors entered the Polish market in 2024, including South Africa’s Emira Property Fund, which acquired a 25% stake in DL Invest, and the UK’s Sona Asset Management, which secured a 49% stake in CPI Property Group. Estonian investment firm Summus Capital also made its debut with the purchase of two office buildings.
Office Sector Makes a Strong Comeback
The office sector recorded around 45 transactions, with a total value exceeding EUR 1.64 billion—a nearly fourfold increase compared to 2023. Warsaw accounted for the bulk of investments at EUR 1.34 billion, with an additional EUR 298 million invested in regional cities.
Some office buildings were acquired for direct use by their new owners, including purchases by public institutions and private buyers such as the acquisition of the Mazowiecka 2/4 property and the Bokserska Office Center. Others were bought with plans for redevelopment, such as the transformation of the Curtis Plaza and the myhive Mokotów complex from office to residential use.
“The resurgence of the office sector underscores the growing appeal of Poland’s regional cities,” noted Jacek Kalużny, Head of Operational Capital Markets at Savills. “Investors are now focusing on both prime Warsaw locations and emerging office hubs.”
Retail Sector Attracts Major Investments
Investment in the retail sector exceeded EUR 1.6 billion, with over EUR 1 billion coming from three major deals, including the sale of a six-shopping-center portfolio to Star Capital Finance for EUR 285 million. Investors continue to focus on retail parks and smaller retail properties, which have demonstrated resilience amid changing consumer habits.
High-profile transactions included the sale of BIG Gorzów and Glinianka retail parks to Big Shopping Centers and smaller retail sites such as Smart Park Syców and Smart Park Zgorzelec, acquired by Newgate Investment. Nepi Rockcastle emerged as the most active investor in the sector, acquiring key retail assets to expand its portfolio.
Warehouse and Industrial Sector Sees Steady Growth
The warehouse and industrial sector witnessed 30 deals in 2024, with a total value of **EUR 1.26 billion—**a 27% year-on-year increase. Investors focused primarily on modern logistics facilities in strategic locations, reinforcing Poland’s role as a major logistics hub in Central and Eastern Europe.
A significant highlight for 2025 is the expected Ares Management Corporation’s acquisition of GLP Capital Partners’ international portfolio, which includes assets in Poland. The deal, valued at USD 3.7 billion, is expected to further boost the sector.
Living Sector Gains Momentum
Investment in the living sector, including PBSA and institutional rental housing, totaled EUR 141 million in 2024. One of the standout transactions was the acquisition of LivinnX Krakow dormitory (now Basecamp) by Xior Student Housing, representing 20% of the total annual sector volume.
The BtR sector also saw significant activity, with transactions such as the purchase of properties at Siennicka 29A in Warsaw and Wrocławska 53J in Kraków. Forward funding projects, including Griffin Capital Partners’ investment in LifeSpot Ostrobramska 86, highlight the sector’s growing appeal.
A key development in the sector was the launch of a private dormitory platform by Signal Capital Partners, Griffin Capital Partners, and Echo Investment, aiming to establish a portfolio of 5,000 student beds within the next three to five years.
Outlook for 2025: Continued Growth and Investor Confidence
Experts anticipate continued growth in the Polish commercial real estate market, supported by the diversification of investment sectors and the strong presence of foreign investors. The office sector is expected to maintain its momentum, while the retail and logistics segments remain attractive due to their resilience and strategic importance.
With increasing demand for student accommodation and rental housing, the living sector is set to expand further, particularly in key academic cities such as Warsaw, Kraków, and Wrocław.
As the market regains pre-pandemic levels of activity, Poland continues to cement its position as a prime investment destination in Central and Eastern Europe, attracting both regional and international investors eager to capitalize on its growth potential.
Link to report in PDF format below.
