Moderate optimism has dominated the Polish real estate market, according to the most recent Sentiment Index Interviews by Deloitte, who polled 40 key property investors. “Overall market conditions are not being perceived as pessimistic, but their responses suggest they’re becoming more cautious,” said Marta Kamionowska, head of financial advisors team of Deloitte. She adds that the overall market cycle, the direction of investment capital and Poland’s political situation are combining to shape sentiments within the sector.
The biggest source of concern for investors over the market is the local office sector, resulting from the rapid growth of supply. Respondents to the survey believe demand is not keeping up with the new supply, resulting in increasing pressure on rents and the widening of incentives that tenants can demand. At the same time, however, they expect the market to rebound in the near-term, claiming it’s the last chance for tenants to lock in attractive terms for leases in new projects.
