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| Poland's regional cities in focus for investors Interest in Poland's regional cities is rising, according to a United Kingdom-based property advisory company Savills, as real estate investment in 2011 is set to exceed €2 billion compared to a total volume of €1.73 billion in 2010. Poland is anticipated to represent one of the highest levels of real estate investment across CEE countries (including Russia) – its 2010 market share was 35%. The international real estate advisor reports that during the last quarter of 2010 and the first quarter of 2011, transactions outside Warsaw included office buildings in Krakow, Wroclaw and Gdansk as well as a number of retail properties and a portfolio of three shopping centers located in Lodz, Torun and Sosnowiec. With a 50-75 bps discount on regional office property, Savills says increasing returns will continue to attract investors. The firm also suggests with positive forecasts for retail sales growth and a number of transactions due to close in Q211, the 19% retail share of overall investment into retail during Q111 should rise over the next quarter to as much as 50% of the total investment volume, with major regional cities seeing increased activity. Austrian and German investors dominated the market in Q111, accounting for almost 80% of the market share in terms of total investment volume and 100% of office and warehousing transactions. Remaining retail transactions were acquired by UK, Swedish and Dutch investors. Savills report states that prime yields have stabilized with CBD offices around 6.5% and at 6.75% in non-central Warsaw locations. Prime office yields in major regional cities are at 7.25%. In comparison prime yields for modern shopping centers stand at 6.25% in Warsaw and other major regional cities, whilst prime warehouse yields are now at the level of 7.75-8%. write your comments about the article :: © 2011 Construction News :: home page |