More than two billion zlotys in immo lab's portfolio

The Polish advisory firm, which specializes in land and capital transactions, announced that in the second quarter of 2023, the value of its serviced investment property portfolio located in all key major Polish cities exceeded PLN 2 billion. The development of immo lab shows that in the currently difficult market there are still attractive niches with high growth potential.

The commercial real estate market is still affected by the effects of the pandemic and the macroeconomic situation caused by the ongoing war in Ukraine. It is now operating in an environment of higher risk and higher cost of capital. Many investors, developers or operators in the office sector have decided to announce new strategies and have presented action plans adapted to these conditions. It is apparent that at this stage of the market cycle, residential assets and land for industrial construction are best behaved.

"Looking at the commercial real estate sector as a whole, it is currently quite unpredictable in terms of business decisions, nevertheless transactions in the market for land and older commercial buildings are maintaining normal levels and even scoring increases, undoubtedly influenced by inflation and the desire to secure capital, as well as a large influx of new investors from Lithuania, Ukraine, the US, Israel, the UK or Belgium. Clients need comprehensive, expert and out-of-the-box advice. We have extensive experience and knowledge of capital markets, real estate and investors. We manage projects from the first analysis to the finalization of transactions, as well as arrange bridge financing and negotiate JV partnerships on behalf of our clients, in all major cities and on the main transportation routes," says Daniel Puchalski, Managing Partner and Founder of immo lab.

Immo lab brokers capital transactions and advises in the area of investment land for the logistics and industrial sectors, services, as well as the office, retail, residential and rental housing (PRS) segments. Over the past year, the PRS sector has been in high demand among investors, and the market has been flooded with offers for funds.

"In fact, in recent months we have consulted on a number of projects oriented toward institutional rentals. However, our analyses showed that most of the sites and projects offered were not attractive due to inadequate housing size structure, failure to meet ESG standards or insufficient service area. Taking many factors into account is important for the future success of a project. That's why the ones we have conducted and are conducting are covered with our 360-degree services tailored to the investor's specifics and needs," explains Daniel Puchalski.

How will the investment land for sale market evolve in the next quarters of 2023? Immo lab points to the growing attractiveness of land in smaller towns and on the outskirts of large cities - both for development and logistics projects. Proper valuation of the property will also be important, as will taking care of permitting rights. It is also worth keeping an eye on brownfield sites, i.e. industrial investments with potential for reuse after redevelopment.