Retail properties in focus: Investors buy more than just parks in Poland

Investors are showing renewed and significant interest in Poland's retail real estate market, with transaction values in the first half of the year surpassing 1 billion euros. This figure already exceeds the total value recorded for the entire previous year, indicating a strong rebound for the sector.

While retail properties have captured substantial attention, other segments of the Polish real estate market also attracted considerable investment. The office sector saw transactions worth approximately 594 million euros, the warehouse and logistics market attracted 782 million euros, and the living sector recorded deals totaling 565 million euros in the first six months. Retail investments alone accounted for about one-third of all real estate transactions in Poland during this period.

Experts from JLL highlight that the retail sector's robust performance is not solely due to the transaction volume but also reflects a shift in investment strategies. Investors are diversifying their approach, channeling capital into various retail formats, including large shopping centers, retail parks, and portfolios of convenience properties. The sale-and-leaseback model, where a company sells its property to an investor and then leases it back, is also gaining traction. This model allows businesses to free up capital without disrupting their operations.

Historically, retail parks dominated investor focus. However, the first half of the year saw a resurgence of interest in traditional shopping centers, exemplified by the acquisition of a majority stake in the Posnania shopping center. Investors also purchased portfolios of retail parks and individual properties. This broad spectrum of transactions demonstrates that investors are no longer concentrating on a single format. Instead, the quality of the property, tenant profile, and the potential for stable cash flow are becoming increasingly crucial, regardless of the retail format.