2024 seems to be a much better year for the real estate market, as confirmed by investors’ appetites. These – according to a study by the CBRE consultancy – are looking for opportunities in the real estate market. In the ‘2024 European Investor Intentions Survey’, international investors named Poland as one of the three most attractive real estate markets in Europe.
CBRE’s “2024 European Investor Intentions Survey” surveyed 888 European professionals from real estate funds, REITs, private equity funds, large private investors, representatives of pension funds, insurance companies and banks. It turned out that the UK is still the most attractive country for investors. Poland, in turn, came out on top as one of those markets where investors will look for opportunities when it comes to investing in real estate.
Why such interest in the Polish market? “Obviously, investors from Europe have a relatively good opinion of the state of the Polish economy. It should also be noted that Poland is one of the few countries in Europe where real estate prices did not fall last year, while in Western Europe and the United States prices of flats and office buildings fell by 10 to 20 per cent. Besides, real estate prices in Poland are still relatively lower for European investors than in other European countries,” points out Radosław Jodko, RRJ Group’s investment expert.
In his opinion, Poland is invariably helped by its geographical positioning – especially when considering the warehouse sector. – Not only warehouses, but also retail parks are proving to be great investments. We are seeing a lot of interest from investors, and I expect the second half of the year to be even better. The key, of course, will be what happens with inflation and interest rates,” predicts Jodko.
Residential and logistics ahead of office buildings.
“Interestingly, in a survey of investors conducted annually by CBRE, for the first time now the residential and logistics market has overtaken the office sector when it comes to the most desirable investment sectors. But it seems that it is not yet time to say goodbye to offices. 2024 will tell us if and how companies return to working in offices. Certainly, quality offices matter. A study has shown, for example, that in the Netherlands the shortage of premium quality offices has translated into higher rental prices,” points out Jodko.
What is proving to be crucial – in the case of the office sector – is the certification of buildings when it comes to compliance with sustainability standards.
A new trend and a new type of investment.
There is also growing interest in a new type of investment: in flats for students and seniors. According to a CBRE survey, two-thirds of the investors questioned will be making alternative investments in 2024 – with student and seniors’ flats being the firm favourites.
“The market for investments in the form of pensions or seniors’ flats can be seen particularly strongly in Germany, and we have been seeing this in the Nordic countries for years. It seems that this will be a growing trend primarily due to demographics and ageing populations. The whole of Europe today is also confronted with the real estate market responding more strongly to social needs,” concludes Jodko.
