High levels of investment are continuing to push yields on Polish real estate assets down, according to the latest research from JLL. Country director Marek Jamro and head of Valuations at JLL says the trend is likely to continue in the near future. “From a long-term perspective, the drop in yields alone may prove to be insufficient to sustain the growth of real estate values as an increase in rent levels would be necessary as well. However, this is highly unlikely due to the intense competition for tenants.”
Last year saw total investment volume of €4.1 billion in transactions concluded. It was the second highest result in the history of the Polish market. Investors were the most active snapping up retail assets worth a total of €2.26bn. Office projects attracted around €1.27bn in investments, followed by €473m worth of industrial deals.
