OKRE Secures Building Permit For Grade A Office
News: Poland-based real estate developer OKRE has secured a building permit for a grade A office building in the Ochota area of Warsaw. The move will expand the company's portfolio in Poland, adding 7,400 square metres of rental space to its existing Polish portfolio. The eight-storey property has been designed by architectural company Kury?owicz & Associates and will be constructed on land owned by the Polish developer. The Polish real estate market is gaining momentum, with investments set to reach a six-year high.
BMI View: The overall picture for Polish real estate has become clouded. Even though on a regional playing field Poland remains one of the stronger real estate teams, wider economic concerns are now catching up with the sector. Retail and industrial rents in particular look set to be under threat from lacklustre trade, retail and household consumption indicators. Growth in the office sector has been less forthcoming with a stalled trajectory. In spite of recent success in the market, we need to be mindful that the country is not immune from external economic woes, and domestic weaknesses and news from the construction pipeline should be of concern.