Tuesday, 16 December 2025
Domestic capital is playing an increasingly visible role in acquisitions on the Polish commercial real estate market, as this asset class becomes a natural direction for capital allocation. Local investors are gradually strengthening their position as a strategic group of market participants. Their motivations include protecting asset value, portfolio diversification, prestige considerations and long-term strategies focused on generating stable passive income.
“These factors make commercial real estate an increasingly obvious and consistently chosen asset class for domestic capital,” says Bartłomiej Zagrodnik, Managing Partner & CEO of Walter Herz.
After the first three quarters of 2025, the share of Polish capital in acquisitions on the commercial real estate market rose to 23 percent. The office sector stood out in particular, with Polish investors accounting for more than 50 percent of all transactions, both by number and by total value.
The growth trajectory of domestic investors has been notable. Three years ago, Polish companies accounted for around 2 percent of total transaction volume in Poland. In 2024, their share increased to approximately 9–10 percent, and in the first quarter of 2025 it reached 17 percent, representing more than one-third of all completed deals.
During the first nine months of 2025, domestic investors allocated more than €0.6 billion to the Polish commercial real estate market, up from approximately €0.5 billion invested in the previous year.
“Polish companies are taking advantage of the attractive pricing of assets available on the domestic market. They see opportunities in the clear valuation gaps between high-quality properties in Poland and comparable assets in other European markets,” says Zagrodnik.
“Investment activity is also supported by market transparency, transaction security, stable domestic demand, rising rental levels and improved access to debt financing,” he adds.
In 2025, investors from Western Europe continue to hold a slight lead over Polish capital in terms of investment volume. They are followed by U.S. investors, whose activity remains lower than that of domestic buyers.
According to the Walter Herz report “Why Invest in Poland in 2026”, the role of high-net-worth individuals (HNWIs) from Poland is increasing. These investors are becoming more active not only in acquiring stabilised office, retail and logistics assets, but also in development projects, typically structured as joint ventures with developers. Alternative investment structures are also gaining importance, including debt funds, bonds, convertible loans and investments executed through family foundations.
The HNWI group—defined as individuals with net assets exceeding USD 1 million, excluding their primary residence—numbered approximately 20,490 people in Poland at the end of 2024, controlling assets estimated at USD 72.19 billion. Warsaw, described as one of Europe’s fastest-growing wealth hubs, is home to nearly 13,000 millionaires, 32 centimillionaires and four billionaires.
In terms of the number of HNWIs, Poland ranks among the leading countries in Central and Eastern Europe, ahead of Greece, the Czech Republic and Romania, while remaining behind the largest Western European markets such as the United Kingdom (2.8 million HNWIs), France (2.8 million) and Germany (2.7 million).
According to Walter Herz analyses, total transaction volume on the Polish commercial real estate market in 2025 may exceed €5 billion, matching or surpassing the result recorded in 2024. During the first nine months of the year, the largest share of capital was invested in the office and industrial-logistics sectors, each accounting for roughly one-third of total investment volume. Retail properties represented approximately 20 percent of transaction value.
Domestic investors are focusing primarily on assets valued between €5 million and €30 million.
Private investors increasingly view real estate as an attractive alternative investment offering higher returns than many traditional instruments. According to Walter Herz, Warsaw currently offers some of the highest yields in the CEE region. In the first half of 2025, prime office and logistics yields stood at around 6.25 percent, while prime retail yields were approximately 6.50 percent. By comparison, prime yields in markets such as London or Paris remain in the range of 3.5–4 percent, enhancing Poland’s appeal, particularly for HNWIs seeking a favourable risk-return profile.
Walter Herz notes that Polish high-net-worth individuals are guided by several distinct investment motivations. Prestige remains an important factor: for many investors, real estate is not only a source of return but also a symbol of status. Ownership of landmark office buildings or historic properties in city centres provides income, long-term value growth and reputational benefits.
Capital preservation and inflation protection represent another key priority. Commercial real estate is viewed as a relatively stable asset class with limited exposure to short-term market volatility. Risk is further mitigated through diversification across sectors, locations and regions.
A core motivation remains the ability to generate predictable passive income without the need for active management. Long-term lease agreements offer stable cash flows, often delivering annual returns in the range of 6–10 percent. In addition, depreciation mechanisms can provide tax efficiencies.
High-net-worth investors have access to a broad range of real estate investment structures, from passive instruments to models requiring greater operational involvement. One of the simplest options is acquiring shares in development or investment companies, providing exposure to diversified portfolios without direct asset management responsibilities.
Debt funds secured by real estate offer an alternative with predictable cash flows, generating regular interest income through development financing. Similar characteristics apply to bonds issued by real estate companies, where investors commit capital for a fixed period in exchange for a defined yield.
Investors seeking higher returns may opt for mezzanine financing, which combines debt and equity features, offering interest income alongside participation in project profits. Convertible loans operate on a similar basis, allowing debt positions to be converted into equity under predefined conditions.
A traditional strategy for HNWIs remains the acquisition of income-generating, leased properties that combine prestige, stable cash flow and potential for value enhancement.
“Technical due diligence (TDD) is crucial before acquiring a property, as it helps identify risks and estimate operational and capital expenditure. Facility management analysis and assessment of design solutions are also essential, as they determine the functional flexibility of an asset,” emphasises Bartłomiej Zagrodnik.
Some investors choose joint ventures with developers, contributing land and capital while the operating partner manages development execution. Others pursue full development projects independently, a strategy offering higher margins but involving greater risk and operational complexity.
An increasing number of investors are also focusing on the revitalisation of older properties. Through modernisation and adaptation to current standards, such assets can gain significant value, both as income-producing properties and resale opportunities. More advanced strategies include changes of use, which require complex planning processes but can substantially increase asset valuations.
Source: Walter Herz
