'We think that Polish investment volumes will  reach €5 bn by the end of this year, with the retail sector set to account for 60% of the total,' Colliers associate director Dariusz Forysiak  said. 

Forysiak added that once again the country's regional cities are set to take the lion's share of investment activity with 70% of transactions by value. Colliers estimate that prime office yields in Katowice are 7.25%, 6.25% in Krakow, while later this year an as yet undisclosed deal under negotiation will set a new regional benchmark for prime retail yields of below 5% in the city of Wroclaw.

'Last year investors' questions were about political uncertainty in Poland but this year we hear none of those questions and investors continue to search for core assets in the country. There is a huge demand for offices especially in the cities of Wroclaw, Krakow and Tricity,' said Forysiak.

Regional office rents are between €10 - 16.5 per m2 per month, retail commands €27 - 43 per m2 per month, while industrial rents are €1.9 - 4.8 per m2 per month, Colliers estimates.

Deloitte associate partner Justyna Milewska said that the Polish legal system governing Polish real estate is 'very similar to the rest of Europe'. Milewska highlighted that next year a new planning and construction code is coming into force which will 'enable a faster and easier development process'.

She said that the government is working on a new draft of a discussion document to introduce a real estate investment trust (REIT) vehicle for Polish and international investors. 'A number of strong lobbyists in the country's investment community have put forward ways of moving this to a conclusion,' said Milewska.

At the moment REIT proposals are only for the residential sector, but Milewska said this is the first step towards a form of commercial property REIT as well.   

Image (L-R): Justyna Milewska, legal advisor and associate partner, Deloitte and Colliers associate director Dariusz Forysiak