According to global real estate services firm Cushman & Wakefield, retail investment volumes reached EUR 320 million by the end of June 2025. Although this performance was 35% below the five-year average, the second half of the year will likely see a strong rebound in the capital market, with the annual total potentially matching 2024’s volume.
In the first half of 2025, retail investment volumes reached EUR 320 million — approximately 35% below the five-year average. However, given the current investor sentiment and the strength of the transaction pipeline, the second half of the year is expected to see a significant rebound, potentially approaching the record volumes registered last year. Poland’s retail sector, therefore, continues to mirror the broader recovery in the European capital market, with stable transaction activity and renewed investor confidence,
comments Aleksandra Włodarczyk, Associate, Capital Markets, Cushman & Wakefield.
Banks’ appetite for lending mirrors investor appetite and the potential for exit, assessed based on current and projected demand. Some have already stepped up lending against retail assets, especially where risk is diversified through portfolio financing. The average LTV remains at 50% of the market value, with depreciation and the margin closely tied to the building’s quality, occupancy levels and WAULT. The lending period is typically slightly shorter than the WAULT. Margins have tightened slightly and now average around 2% per annum for prime assets. Other key factors considered by banks when assessing individual projects include the level of primary energy, ESG strategies and planned decarbonisation pathways for older properties,
concludes Mira Kantor-Pikus, Partner, Equity, Debt & Alternative Investments, Capital Markets, Cushman & Wakefield.