Given the absurd amount of institutional money currency chasing prime properties in Poland's capital. I am not sure whether there are even enough bricks and concrete to invest all that money in Warsaw. This situation will certainly lead to investment founds looking at secondary cities in Poland, however this development is yet so be seen. We have a very challenging market environment and it is maybe not everybody's piece of cake to get twisted in this weird situation of fierce competition in the construction sector on the one hand, and a partly sick tenants' markets on the other. How does it help to achieve reasonable development prices, if your building stays empty after completion? Banks have luckily put a lid on some of too ambitious projects and there are only a handful of really desperate, non-performing loan transactions, so I have all reasons to believe that the negative experience of the east German real estate market will not be repeated in Poland.

Sven von der Heyden
Chairman von der Heyden Group