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Dear readers,
“There is marked optimism in the market compared to the first quarter of 2021 after almost all coronavirus restrictions were lifted at the beginning of the second quarter. Demand for financing is extremely high, as is interest in new products with investors on the lookout for alternatives to retail and hotel properties. The residential sector is in a state of flux. Before the pandemic, investors’ attention was focused on owner-occupied apartments, with demand for rental apartments making up only a small share of the market (5 %). Demand for rental apartments among institutional investors, particularly international ones, has risen sharply over the past few months. There is a great deal of liquidity in the market, and private investors are also looking for investment opportunities. The rising number of investment funds is particularly notable in this context. Away from the residential sector, logistics properties are also in high demand and are among the major winners of the coronavirus pandemic. Demand for offices also remains high, even though banks are acting more cautiously. All in all, the market is very interesting and offers a great deal of opportunities, but it remains to be seen whether the confidence can be maintained as the year progresses.”
Your Beata Latoszek
Contact
Ms Beata Latoszek
Managing Director Poland
Phone: +48 22 828 02 53
E-mail: Beata.Latoszek@Deutsche-Hypo.de
Polish real estate market activity continued on its recovery course in the second quarter of the year, reporting the highest rate of growth among the European markets monitored as part of the REECOX (+9.0 %). The quarterly performance was mainly due to growth in April (+5.5 %) and May (+3.2 %), whereas market activity remained relatively stable in June at +0.1 %. The REECOX Poland closed the second quarter at 197.8 points.
The overall positive development of the REECOX Poland was primarily due to the development of real estate equities and the business climate. Following the negative performance in the previous quarter, the Polish benchmark index, the WIG 20, posted strong double-digit growth of 14.4 % in the second quarter to close at 2,218.4 points. The WIG Developers real estate index also reported double-digit growth of 15.6 % and surpassed the 3,000-point mark at the end of June. Growth in April (+9.6 %) and May (+5.0 %) was the main reason for the quarterly performance. Economic expectations, as reflected by the Economic Sentiment Indicator (ESI), remain positive. The indicator rose by 12.5 % at the start of the second quarter, and went on to perform positively throughout May and June. At the end of the quarter, the index had reached a level of 106.9 points, a rise of 18.4 % compared to the previous quarter.
Country | Stock Index | Real Estate Economy Index | Economic Indicator | Base Interest Rate | Interest Rate 10-Year Government Bonds | Q1-21 | 04/21 | 05/21 | Q2-21 | Delta (%) Q1-21 / Q2-21 |
|---|---|---|---|---|---|---|---|---|---|---|
DE | up | up | upup | eq | eq | 328.9 | 339.4 | 348.4 | 356.4 | 8.4 |
GB | up | up | upup | eq | eq | 203.0 | 217.0 | 219.5 | 219.9 | 8.3 |
PL | upup | upup | upup | eq | up | 181.7 | 191.4 | 197.6 | 197.8 | 8.9 |
NL | up | up | upup | eq | eq | 188.2 | 197.4 | 201.7 | 204.3 | 8.6 |
FR | up | up | upup | eq | up | 229.0 | 237.3 | 244.8 | 245.0 | 7.0 |
ES | up | up | upup | eq | up | 175.1 | 181.2 | 184.1 | 183.4 | 4.7 |
