With a 400+ strong team under your management, what vision have you brought to CBRE’s robust presence in Poland?

When I joined CBRE, we were positioned as the third or fourth player in the market. Over time, we expanded our team and market share, becoming leaders in transaction and advisory business in Poland and the broader CEE region. Maintaining this position remains our ambition, constantly enhancing our service portfolio. We’ve doubled in size, and the hunger to sustain this growth persists.

Reflecting on your tenure spanning over a decade, how has the real estate market evolved, and what notable changes have you witnessed?

The office sector, my area of expertise, has doubled since the 2008 crisis. Foreign investor interest has risen, yet local capital infusion into real estate remains at a modest 3-5%, contrasting sharply with countries like the Czech Republic or Hungary where local investments occupy up to 30-40% of the market share. Poland’s market dynamics stem from regulatory environment specifics and weaknesses in the capital market.

What regulatory changes could positively impact Poland’s real estate industry?

Introducing REIT (real estate investment trusts) structures on the national market could be a crucial legislative change. Addressing the historical neglect of the commercial real estate sector by decision-makers is essential to support local investors and balance market dynamics.

What factors contribute to Poland’s success in attracting foreign investors?

Attractive yields, notably higher than in Western Europe, make Poland an appealing investment prospect. Prime office yields here are around 4.6%, compared to 3% or less in Western Europe. The country boasts class A office buildings, a diversified tenant base from multinational corporations to local businesses, and resilience even amid the pandemic due to its robust fundamentals and population size of 38 million.

How have various real estate segments fared amidst the pandemic, particularly logistics and hotels?

The logistics sector witnessed acceleration due to the crisis, driven by behavioral shifts toward e-commerce. Industrial tenants are increasingly embracing technology to optimize outputs and facilitate faster deliveries. Conversely, the hotel sector faces challenges with some considering restructuring or divesting, while others seek financial support from banks, realizing the risks associated with asset value depreciation.

Beyond Poland, which CEE economies do you perceive as presenting substantial real estate opportunities?

The Czech Republic excels in residential real estate, followed by Hungary, albeit at a slower pace. Romania holds untapped potential, showing signs of catching up soon. Unlike Poland, local capital plays a significant role in these countries alongside foreign investments.

What are CBRE Poland’s primary goals for the next two to three years?

Our aim is to support clients in creating optimal places for work, living, and investment amid constant changes. Leading the transformation in technology, wellness, and sustainability within the real estate sphere is our vision. Collaboration and concerted efforts are pivotal to achieve results akin to developed economies.