Voices from the market

Union Investment Real Estate

Originally Published in March 2018

Poland and its commercial real estate markets have been a place of a success story for Union Investment, ever since we stepped into the market 10 years ago. The purchase of the Maraton office building in 2017 and the acquisition of Magnolia Park conclude a very special year for Union Investment on the Polish real estate market. The Polish investment market, coupled with strong growth dynamics, still offers a stable environment for achieving long-term sustainable returns. Poland’s secondary markets as Wroclaw, Katowice or Łódź remain a special interest for Union Investment as we look to further grow our core portfolio in Poland in the middle and long term. Our strategy for Poland involves broad diversification of our real estate portfolio.

We expect the Polish commercial real estate investment market to perform on a similar level as in 2017. Current return rates in Poland are still more attractive compared to the traditional core markets in France, Germany and United Kingdom. It should motivate investors to seek out business opportunities in Poland. However, they should take market risk factors into account when assessing each investment opportunity. Mostly caused by Poland’s competitive rental market, with a high activity of office developers in prime locations.

Comment by Adam Iranyi, Head of Investment Management Poland at Union Investment Real Estate GmbH