Poznań Real Estate Market 2019/2020 - CBRE report
The CBRE publication comprehensively presents the most important areas of development of the real estate market in Poznań: from the office real estate market, to hotel and logistics investments, to residential real estate and alternative projects.
* Preparation of the report began before the SARS-CoV-2 pandemic period. The data published in the report refer to 2019. The conclusions and recommendations presented in the report were drawn before the current restrictions.
Real estate for business
A large number of educated employees on the Poznań labor market enables the continuous development of the BPO and SSC sectors, which increased by 12% compared to 2018, ranking Poznań ex aequo with Katowice number 5 among Polish cities. At the same time, the office base is expanding. The area in square meters exceeded half a million in 2019 (reaching 565,000 sq m), thus ranking Poznań number 5 in the country in this respect. The largest investments in this field are the construction of the Nowy Rynek complex by Skanska and completing the second stage of Business Garden by Vastint. The sector is expected to grow in the coming years, also due to the development of smaller companies whose demand for office space will grow.
Poznań as a trade fair city, the largest exhibition and conference center in the country, attracts more and more hotel investments. The growing number of domestic and foreign tourists also contributes to this. In 2019, several facilities belonging to the international hotel chains were built, including Hampton by Hilton or Moxy. Three-star hotels dominate, but the share of 4- and 5-star is also growing. There is still room for new hotel investments in Poznań.
The excellent location of Poznań close to the German border and excellent communications with other regions, but also countries, thanks to the modern road network, means that the logistics and warehouse market is constantly developing. Numerous logistics centers operate in the immediate vicinity of the city and new ones are being built. The fact that about 1/3 of the contracts are constantly extended by tenants evidences the favorable conditions for the development of the logistics industry around Poznań
Real estate for residents
The housing market in Poznań is one of the six largest markets in the country and shows an upward trend, both in terms of the number of flats delivered and prices. Most apartments are for sale and for rent. There is a clear interest in single-family houses and a large share of investments in the suburbs, but in the last year numerous projects have also been created in the very center of Poznań. Inhabitants also value the areas of existing housing estates. First of all due to the developed infrastructure and easy access to public transport. On the market the local developers (Ataner, Agrobex), the ones active on the nationwide level (Budimex, Echo Investment) as well as the foreign ones (Bouygues Immobilier, BPI) are present.
Investors' interest in alternative real estate, i.e. student housing and centers for seniors, is also noticeable. A large number of students together with a very small number of dormitory places and their low standard means that foreign student home networks are increasingly looking for locations for their investments. Universities are also considering building new facilities.
The growing number of elderly people also creates a niche for investors. The existing offer of houses and flats for seniors is insufficient and their standard low, which is why an increase in investment in this sector is expected. Currently, the facility of Orpea, a French senior center operator, is being built in the city center, being the first of its kind in Poznań.
Municipal plots with huge potential
The City's participation in shaping the real estate market should also be noted. Municipal plots, often very attractively situated and designated for various functions, are a strong magnet for investors and contribute to the intense construction activity in Poznań. A tender for two city plots at Unii Lubelskiej St. is planned for July 2020- the investment fields that are part of
a new residential district planned by Municipal Urbanism Workshop in the south-eastern part
of Poznań.
We invite you to read the detailed data contained in the CBRE report and to the website where you can find the current offer of the municipal plots.
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