On the up: Poland scores high in global property index
Poland has been ranked top in Central Europe and fifth in the world for regulatory and legal transparency in the Global Real Estate Transparency Index 2020.
The report by Jones Lang Lasalle (JLL), a real estate services firm, is seen as the industry standard and ranks 99 countries across six categories such as investment performance, market fundamentals, the regulatory and legal environment, transaction processes and sustainability.
The UK came out top in the overall rankings with USA second, Australia third, France fourth and Canada fifth. Poland was ranked 20th ahead of other EU countries such as Austria and Luxembourg.
In the ‘regulatory and legal’ category Poland ranks fifth in the world. It is defined by JLL as concerning the country’s real estate tax, land-use planning, building controls and enforceability of contracts as well as property registration, compulsory purchase and debt regulation. This has been reflected in the first half of 2020 as investors have continued to back the market with the first half of the year seeing the highest level of real estate investment amounting to EUR 3.5 billion, 30 percent higher than the same period last year.
This figure is also higher than the combined total of EUR 2.9 billion for Hungary, Slovakia, Romania and Czech Republic for the same period. The majority of investment in Poland in 2020 has come from abroad from European countries such as the Czech Republic, France, Hungary, Singapore and South Africa.
“The strong foundations of the Polish real estate market are confirmed, among other things, by the high level of investor activity, which we can observe despite the global turmoil wrought by the coronavirus pandemic,” said Agata Sekuła, vice-president of JLL Poland. “So far in 2020, the real estate investment market saw transactions valued at more than EUR 3.7 billion. This illustrates the continued trust and confidence of investors. The continuation of working on improving the legislative climate, better cooperation between the private and public sectors, and increasing innovation means that Poland could be ranked higher in two years’ time.”
Poland’s 20th position means that it retains the same place it held in the last rankings two years ago. The country also performed well in the transaction processes category receiving the same score as Germany and scoring better than countries such as Japan, Hong Kong, Singapore and Switzerland.
“The pandemic has strongly emphasized the role of modern technological solutions, thanks to which companies have maintained their business continuity and can now return to office buildings without any major obstacles,” said Mateusz Polkowski, head of research and consulting at JLL. “Therefore, the coming months and years will be marked by increased spending on innovation, such as in the area of prop-tech, thanks to which real estate will become even more secure for its users. Another interesting aspect is the increased importance of sustainable development. Global climate change is temporarily overshadowed by the coronavirus, but we must remember that consistency and long-term strategies aimed at environmental protection are particularly important in this area. These two issues should be the focus of investors and developers who are active on the real estate market in Poland.”