Press release

30 Mar 2021

The Polish Real Estate Guide 2021. The real state of real estate

In 2020 the total investment volume decreased by approx. 28% yoy

In 2020 the total investment volume decreased by approx. 28% yoy and settled at the level of €5.6bn. Despite the challenges of COVID-19 the transactions have been unlocked and a number of deals have been concluded, especially at the turn of 2nd and 3rd and in the 4th quarter. Some of the properties sold in 2020 were a part of larger, European portfolios.

As the industrial market kept its pace, mostly due to the development of e-commerce sparked by the pandemic, it has dominated transaction structure, claiming approx. 50% of the market. Office market followed with 39% share, amounting to €2bn.

Most of the capital inflows to Poland from Europe, Asia, United States and South Africa. Despite the COVID-19 pandemic the results achieved on the investment market are relatively strong. Exceptional volumes in industrial sector and good performance of office sector, especially in comparison to other countries in the region, and relatively good economic outlook suggest that Poland will remain attractive to investors looking to achieve higher returns, while maintaining a relatively low risk profile.

Office Market in Poland

The pandemic completely changed our habits and will affect the organization of office space in a long term. Future offices will be adapted to new anti-epidemic standards, which will result in implementation of a shift system and employee rotation in office space, the usage of easy-to-clean finishing materials, implementation of remote solutions to limit activities by direct touch on common areas, greater care of air quality - air exchange, filtration, higher level of humidity, implementation technological solutions for managing the space and oneself in it.

Retail Market in Poland

The outbreak of the COVID-19 pandemic has largely affected the retail real estate sector. Restrictions imposed on the shopping centers influenced consumers’ habits, including more online shopping or choosing smaller, local shops. Convenience stores were the ones that fared best during the lockdown, recording the highest increase in turnover volumes before trade restrictions were imposed. The positive performance of convenience centers stemmed from their high share of food operators and the specific nature of such establishments (local entities, mostly with direct shop entrances and with no common areas).

Warehouses in Poland

The pandemic further boosted the warehouse market over the course of 2021, which was on the growth path over the last couple of years. It has been mainly fueled by the e-commerce sector and multi-channel sales models implemented by conventional retailers, which contributed to record demand.

Hotels in Poland

Rapid growth of the hotel market till 2019 in Poland was reflected by the increasing number of new hotels, growing number of tourists, as well as the growing interest in the Polish market from international hotel brands. The outbreak of the COVID-19 pandemic caused delays in the new hotels openings. Openings scheduled for spring 2020 took place during the holiday months.

Residential Market in Poland

Due to the economic crisis the boom on the Polish residential market has been stopped. Despite a significant drop in interest in buying apartments in second quarter, which affected the overall year result, prices in major Polish cities remained at a stable, high level. The estimated domestic price growth rate in 2020 amounts to 6%.

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About EY

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EY in Poland has about 4,000 professionals operating from 7 offices across Poland – Warsaw, Gdańsk, Katowice, Kraków, Łódź, Poznań, Wrocław and EY SSC. EY Poland has been announced the “Best and Most Successful Tax Advisory Services Firm” several times in the business media rankings, and has also topped the “Best Accounting Firm” lists.

Since 2003 EY Poland has been running the EY Entrepreneur Of The Year Poland programme, with the country winners representing Poland to vie for the EY World Entrepreneur Of The Year title in the finals held annually in Monte Carlo.

EY is also one of the best employers in Poland. The firm has been honoured with Uniwersum’s “Best Employer” title and the “Most Desirable Employer” in the “Employer Of The Year®” ranking by AIESEC. EY has also received the “Great Place to Work” awards in the category of firms with more than 500 employees.