International capital is once again showing a stronger interest in Polish commercial real estate. Recent transactions completed by Echo Investment highlight how investors are reassessing pricing, income stability and long-term growth prospects in the market. In this interview, Judyta Sawicka, Head of Investment at Echo Investment, discusses what is driving buyer demand today, how the company decides when to monetise mature assets and why capital recycling into living and mixed-use developments is becoming central to Echo Group’s strategy.
Echo Investment has recently completed several major divestments, including the sale of the Libero shopping centre in Katowice and Brain Park building C & building A in Kraków. What do these transactions say about investor appetite for Polish commercial assets today?
These transactions show that international investors see value, security of capital and long-term growth potential in Polish assets. At the same time, they have become far more selective. Capital today focuses on assets with strong fundamentals – prime locations, strong tenants and high-quality buildings built for long-term relevance.
Poland remains one of the fastest-growing economies in the EU, with a GDP growth of 3.6% in 2025. It is firmly anchored in the EU and NATO, with defence spending among the highest in the alliance. At the same time, prime office assets in Poland still trade at significantly lower capital values than comparable buildings in Western European cities, while the quality of buildings and tenant profiles is increasingly comparable and often outstanding in ESG performance.
Many investors we speak with see this as an attractive moment in the cycle. They can acquire well-leased assets at attractive entry levels in a fast-growing EU economy, while limited new supply is likely to support rental growth in the coming years.
Office assets in regional Polish cities continue to attract buyers, as demonstrated by the Brain Park transactions in Kraków. What characteristics make regional office projects attractive to investors today, despite the challenges facing the sector globally?
Regional office markets in Poland benefit from a strong tenant base of multinational and local companies and a large pool of skilled professionals with English as a working language.
The office stock is clearly polarised. The best buildings — well-located and well-connected to transport and amenities — attract strong tenant demand and operate at full occupancy. Older buildings in peripheral locations, with weaker ESG standards and limited connectivity, face growing challenges and, in some cases, will require repurposing.
At the same time, the pipeline of new projects is limited, and land in prime locations is scarce. As a result, top assets attract tenants willing to commit to long leases, while existing occupiers increasingly seek early renewals as they anticipate rent increases. This combination allows prime office buildings in regional Polish cities to continue offering stable income and remain attractive to investors.
Many of your recent deals involve selling stabilised, fully leased assets. How do you decide when a project has reached the right moment in its lifecycle to be monetised?
We typically consider a sale once a project has reached operational maturity – when it is fully delivered, stabilised and generating predictable cash flow. At that stage, the asset has largely realised its value creation potential from development and leasing, which makes it attractive to long-term investors seeking secure income. The timing also depends on market conditions and investor demand for a particular asset class. For us, monetisation is a natural part of the development cycle and allows us to recycle capital into new projects.
Echo Group has been increasingly recycling capital from mature commercial properties into new developments, particularly in residential and mixed-use projects. How central is this capital rotation strategy to the company’s growth plans over the next few years?
It is a key element of our strategy as we return to the model of a classic developer – building projects, creating value through development and leasing, and then selling stabilised assets to long-term investors. This approach allows us to continuously free up capital and reinvest it in new opportunities, particularly in living and mixed-use projects where we see strong long-term demand. Rather than holding a large portfolio of mature assets, we want to focus on what Echo does best: shaping new urban projects and bringing them to market. Recycling capital, therefore, directly supports the scale and pace of our future developments.
We are seeing growing interest from international capital in the Polish market. In your recent transactions, who are the most active buyers, and what type of product are they primarily looking for?
The most active buyers today are institutional funds, typically investing through asset managers, as well as European family offices and high-net-worth capital. Our recent transactions involved investors from France and Estonia, and we are also seeing strong activity from regional CEE investors. At the same time, Polish private capital became very active, which further strengthens market liquidity.
In terms of product, logistics and prime office buildings dominate investor demand. In the retail sector, the most recent activity has been driven by portfolio transactions, which is why the sale of Libero as a single asset was a particularly notable transaction.
Echo Investment is also expanding its exposure to living sectors such as PRS and student housing through platforms like Resi4Rent and StudentSpace. How do these sectors influence your approach to acquisitions and disposals today?
Through platforms like Resi4Rent (PRS) and StudentSpace (PBSA), we are building scalable, long-term operating businesses that respond to strong structural demand in Poland’s living sector. This means that when we monetise mature commercial assets, a significant share of the recycled capital can be redirected into these segments. In this way, our acquisitions and disposals are closely aligned with the strategic shift of the Group towards living and mixed-use development.
Looking ahead to the next phase of the cycle, what will determine whether transaction volumes in Poland accelerate: pricing adjustments, improved financing conditions, or the return of more international investors?
Transaction volumes in Poland are no longer waiting for financing to return, and they are no longer blocked by major repricing. Financing is available, banks are active, and pricing has largely reset.
The volume growth will come from capital conviction and timing. Prime assets in Poland can still be acquired at relatively attractive entry levels, but that window is gradually narrowing. We are already seeing bids in 2026 slightly higher than in 2025.
Poland’s macro outlook supports this. The economy is expected to grow at around 3% annually in the coming years, well above the Eurozone average. At the same time, supply in several sectors remains limited, and rents in prime locations are beginning to move upward.
In that environment, many investors recognise that the window to acquire high-quality assets at today’s pricing may not remain open for long. As that conviction builds, transaction volumes are likely to accelerate.
In that environment, more international capital is likely to increase allocations not because the market is waiting for stabilisation, as investors increasingly view the current stage of the cycle as an attractive moment to acquire prime assets.
