Polish CRE surges past €2b mark with robust May activity

Poland's commercial real estate market is showing impressive activity as it approaches its mid-year summary, with May being a particularly strong month, according to research by Avison Young.

Poland weekly investment volumes - Avison Young

Total investment volume for the first five months of 2026 reached approximately €2.3 bn across around 50 deals.

May alone accounted for roughly €1.1 bn in transaction volume, doubling the results from the first four months of the year, indicating strong market momentum.

This surge was largely due to two significant transactions: the sale of 18 PRS assets by Resi4Rent to Vantage Development for over €560 mln and the acquisition, by Ares Management, of five warehouse properties for more than €200 mln.

Each of the four main commercial real estate sectors has seen at least one transaction exceeding €100 mln since the beginning of the year, leading to a significant increase in average transaction size.

Maintaining its lead from Q1, the industrial sector has seen over €700 mln in investment volume. This was boosted by the Raben portfolio sale-and-leaseback to WP Carey and Ares Management's SIM portfolio acquisition. The narrowing pricing gap and strong interest in assets with long-term leases are driving this recovery, especially from foreign capital.

With over €0.5 bn in investment and the highest number of transactions, the retail sector is robust. Key deals include Adventum acquiring eight Auchan shopping centres and Crestpoint Capital Partners entering the Polish market with the purchase of Pasaż Łódzki. Retail parks and convenience schemes continue to be popular.

The largest office deal was Wood & Company's acquisition of Royal Wilanów in Warsaw. Notably, Polish capital dominated May's office transactions, with three out of four deals in regional cities, including prime office buildings in Kraków like Brain Park A and The Park Kraków. Increased investment activity in this sector suggests 2026 volume could match or exceed last year.

Looking ahead, Poland continues to be an attractive investment destination due to its economic stability, strong fundamentals, and transparent real estate market. Investor interest is growing from Western Europe (especially France), the CEE region (Czechia, Hungary, Baltic countries), and there are early signs of renewed activity from Asian investors. Domestic capital has also become a significant force. The forecast for 2026 is optimistic, expecting to outperform the previous year, supported by positive market sentiment, strong economics, and a robust pipeline of transactions.