Justyna Kędzierska-Klukowska, Head of the Warsaw office at Berlin Hyp AG, talked to Property Forum about the current availability of financing and the conditions of the Polish real estate investment market.
Warehouses, residential, PRS - which properties are banks most likely to lend money on at the moment?
I believe the banks are now more than ever following the case-by-case approach, cautiously looking at the fundamentals of each project they are requested to finance, so there is no one simple answer to this question. I am convinced that in every market segment, you can find attractive financing opportunities in the current market conditions.
And which assets are now considered risky?
Perceived as more risky have always been assets in less attractive or less accessible locations, assets that do not meet the current market standards in terms of quality or design, etc. Today a further issue has become the number one in the assessment of property attractiveness, namely the sustainability aspects, which are currently on the agenda of tenants, investors, and lenders as well.
Justyna Kedzierska-Klukowska
Head of Warsaw Office
Berlin Hyp AG
The investment market in Poland is shaping up to be the most modest year in a very long time. Is it just the high interest rates? The condition of our economy is virtually flawless...
The conditions of the Polish real estate investment market, which has been always totally dominated by foreign capital, appear to be just a reflection of the global market situation. Indeed, the interest rates are the main impacting factor, but from our domestic perspective, it is rather an indirect influence. The key investment market players seem to be focusing on taking care of their portfolios in the markets where the yields used to reach the lowest levels. Dealing with such challenges, they are naturally less willing to look at markets perceived as less mature, unless they see a real opportunity.
What is Berlin Hyp's policy towards investors who attach great importance to the implementation of ESG rules? Can they count on better financing conditions than "ordinary" borrowers?
ESG is a key element of our strategy. Our products and services promote the transformation of the financial and real estate industries into permanently sustainable and thus viable economic sectors. Therefore, the ESG awareness and policy of our clients are of significant importance to us. In reality, it is not just about the financing conditions, but first of all about the appetite of lending to a property without an ESG agenda.
Can we expect a thaw in the investment market in 2024?
I strongly believe in the ability of our market to return to investment volumes we observed in the past, however, given our dependency on foreign equity sources, I am afraid we will still need to wait to see it again. Nevertheless, once the markets find their new balance, I am sure the vital forces of our economy will result in a strong performance of the real estate industry.
