Polish warehouse market to attract EUR 500–600 mln of investment this year

"We expect that the interest in warehouse and industrial space will continue through 2015 on the investment market. Our estimation is that the turnover will reach EUR 500–600 mln. Yields will continue to fall to below the 7 pct level. Some significant deals will even have yields below 6 pct," said Tomasz Puch, the head of industrial capital markets at JLL. "On first sight, the supply of products on the warehouse and industrial real estate market is low, but there will be deals on a European and CEE scale and this will have an influence on the Polish market turnover. Last year was unique in terms of the turnover volume. Turnover reached EUR 750 mln. This result probably cannot be repeated, as 2014 saw a number of large portfolio transactions – and the buyers are long term investors who are not interested in the quick sale of the real estate. Over 80 pct of the deals on the warehouse and industrial market in 2014 formed part of larger portfolio transactions, both international and domestic. What is interesting, is that over 85 pct of the market has now been taken over by just five leading players. This shows a high level of capital concentration," said Tomasz Puch.