In 2023, Poland’s commercial property market experienced a remarkable boom, with investment reaching an all-time high of €2.1 billion for the year, and a record-breaking €1.76 billion in the second quarter alone. This surge in investments has been largely fueled by foreign players, particularly from the UK and the Czech Republic. Szymon Mojzesowicz, a Polish real estate market expert, highlights the dominant role these two countries are playing in shaping Poland’s real estate landscape.
In the first half of 2023, foreign investors accounted for 73% of the capital flowing into Poland’s commercial property market, with UK-based investors contributing a substantial 34% and Czech investors increasing their share to 18%. This marks a significant rise for the Czech Republic, whose market share in Poland was just 7.6% in mid-2022. “The jump in Czech investment is very clear,” Mojzesowicz explains, noting the growing prominence of Czech investors in the Polish property market.
The resurgence of Czech investors is closely tied to the improving economic conditions and falling interest rates. After a turbulent 2023, the global economic outlook has become more favourable, spurring confidence in markets like Poland. As Mojzesowicz points out, “The return of Czech investors is the result of falling interest rates and better economic sentiment, which always motivates buyers to invest.”
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The pandemic years (2020-2022) played a critical role in this shift. During that period, Czech property markets were limited in terms of supply, driving investors to seek opportunities abroad. Despite rapid price increases, Poland’s commercial property market offered relatively affordable prices and attractive yields—up to 8%—making it an appealing option for those looking for investment opportunities.
Poland’s economic stability has further bolstered its appeal. Despite global uncertainty, Poland has shown resilience, maintaining strong growth, which continues to attract foreign investment. As Mojzesowicz notes, “Poland has demonstrated resilience in difficult times, guaranteeing strong growth, which makes our country an attractive place to invest in real estate.” The nation’s robust infrastructure is another key factor driving investment, with Poland’s well-developed transport, logistics, and communication systems making it a prime location for commercial real estate.
Poland’s Commercial Property Market Set to Reach €4 Billion in 2024, Driven by Strong Foreign Investment
Looking ahead, experts predict that Poland’s commercial property investment market will close in 2024 with an impressive €4 billion. This growth would signal a full market recovery and reinforce Poland’s position as a key destination for international investors. “This is a clear signal sent to investors that the market has revived and is waiting for more investment portfolios,” says Mojzesowicz. He further suggests that Czech investors could increase their market share to 25% of all European real estate investments in Poland by the end of 2024, underscoring the continued rise of the Czech capital in the region.
The Polish commercial real estate market has not only recovered but is poised for further growth. With the backing of strong foreign investment, particularly from the UK and the Czech Republic, Poland is set to remain an attractive and resilient player in the European real estate market.
The article was written based on a commentary by Polish real estate expert Szymon Mojzesowicz.