The Polish advisory firm, which specializes in land and capital transactions, announced that in the second quarter of 2023, the value of its serviced investment real estate portfolio located in all key major Polish cities exceeded PLN 2 billion.
The commercial real estate market is still affected by the effects of the pandemic and the macroeconomic situation caused by the ongoing war in Ukraine. It is now operating in an environment of higher risk and higher cost of capital. Many investors, developers, or operators in the office sector have decided to announce new strategies and have presented action plans adapted to these conditions. It is apparent that at this stage of the market cycle, residential assets and land for industrial construction are best behaved.
"Looking at the commercial real estate sector, it is currently quite unpredictable in business decisions. Nevertheless, transactions in the market for land and older commercial buildings are maintaining average levels and even scoring increases, undoubtedly influenced by inflation and the desire to secure capital, as well as a large influx of new investors from Lithuania, Ukraine, the US, Israel, the UK or Belgium. Clients need comprehensive, expert, and out-of-the-box advice. We have extensive experience and knowledge of capital markets, real estate, and investors. We manage projects from the first analysis to the finalization of transactions, as well as arrange bridge financing and negotiate JV partnerships on behalf of our clients in all major cities and major transportation routes", says Daniel Puchalski, Managing Partner and Founder of immo lab.
Immo lab brokers capital transactions and advises in investment land for the services, logistics, and industrial sectors, as well as the office, retail, residential, and rental housing (PRS) segments. Over the past year, the PRS sector has been in high demand among investors, and the market has been flooded with offers for funds.
"In fact, recently we have consulted on many projects oriented toward institutional rentals. However, our analyses showed that most of the sites and projects offered were not attractive due to inadequate housing size structure, failure to meet ESG standards, or insufficient service area. Taking many factors into account is important for the future success of a project. That's why the ones we have led and are leading are covered with our 360-degree services tailored to the investor's specifics and needs", explains Daniel Puchalski.
How will the investment land market for sale evolve in the following quarters of 2023? Immo lab points to the growing attractiveness of land in smaller towns and on the outskirts of large cities - both for development and logistics projects. The clue will be a proper property valuation and taking care of permitting rights. It is also worth keeping an eye on brownfield sites, i.e. industrial investments with the potential for reuse after redevelopment.
