2012 Global Market report - NAI Global

Warsaw, Poland
Doha City, Qatar
Contact
NAI Estate Fellows
+48 22 379 7300
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
120,728
3.7%
$468.82
$12,313.72
2.7%
9.2%
4.5%
38.073
Q1 of 2011 has definitely brightened the economic spirit in
Warsaw with growing foreign investments having a positive
effect on the demand for office space. Still, the bank loan
financing policy remains restrictive and has kept the level
of new deliveries to the market low, limiting the supply of
Class A office space, as well as increasing rents and
vacancy rates. This is the case in Warsaw, the capital of
Poland. But other Polish cities have seen stable market
activity and rental rates.
The beginning of 2011 brought 198,000 SM of office space
with new lease transactions to the market, where 2010
closed with 211,000 SM total for the entire year. This shows
that tenants are concerned with an increase in rental rates
in the future. The investment volume has noted a 400%
raise (approximately €2 billion) with most of the transactions
coming from foreign investors in Warsaw and half of them
in the retail sector. An example is the acquisition of Warsaw
Promenada by Atrium Real Estate and Wroclaw Magnolia by
Blackstone. The largest transaction was the purchase of the
Europolis office portfolio by CA Immo fund.
As rents grow, coupled with the demand and the shrinking
amount of new investments, average cap rates have held
at approximately 6.5%, although slightly less for retail
projects. The numbers are generally higher in the smaller
cities. 2010 brought over 560,000 SM of new retail space
and supply should remain at the current level through 2011.
The Warsaw retail market remains the largest with 1.37
million SM of modern retail space. The forecast shows
Warsaw will experience a strong demand as the new
pipeline remains extremely limited.
The logistics market experienced a 7% rise in the transaction
volume with 800,000 SM and 64% of the total in new lease
contracts signed. Rents remain stable and vacancy rates
have shown a slight dip to 13.3% in Q2 2011. Almost 45%
of new contracts signed took place in Warsaw. The largest
lease transaction, a 25,500 SM project was secured by TK
Maxx and Wroclaw Goodman.
The forecast shows a further increase in demand for
projects all over the country. Due to stable economic growth
as well as the promising idea of fiscal reforms, the prospect
of further economic development in Poland seems to be the
most favorable amongst all European countries.
Contact
NAI Qatar
+974 431 6717
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ M)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
11,437
30.2%
$126.98
$77.76
2.4%
0.5%
4.5%
17.01
The state of Qatar is located on the western side of the
Arabian Gulf. Qatar is one of the richest and fastest growing
economies in the world with a GDP of 150,550 billion, a rate
of growth at 30.20% and a per capita income of 88,558.
The population rate is 17.01 million with an unemployment
rate of 0.50%. The interest rate is 4.5% and the inflation
rate is 2.4%.
Qatar’s construction sector is growing at a fast pace,
propelled by the country’s powerful economy, stable political
environment and the thriving real estate sector in preparation
for hosting the 2022 FIFA World Cup. The positive aspects
in the market include; developers bring to the market a timely
transfer of high quality, value-added projects, improvement
of the banks in managing the risks associated with over
exposure to the real estate sector and the investor friendly
laws and regulations, including generous financial incentives
and tax breaks to attract investors. All of these factors have
created solid fundamentals in the real estate market in Qatar.
There is strong demand for both leasehold and freehold
properties in Qatar. The average rate (leasehold) for a three
bedroom apartment is US $2,546, US $2,122 for a two
bedroom apartment, US $1,736 for a single bedroom
apartment and the average asking rate for a villa is US
$4,214. For freehold properties the rate is US $3,193/SM.
The office market is experiencing strong demand. The
vacancy rate for office space in Doha is very low. The
vacancy rate in the CBD is around 15% and 5 % in suburban
areas where the average rate per square meter is low as
compared to CBD, but will get facilities similar to CBD. The
average asking rate for office space in the CBD is US
$56/SM. In the suburban areas, the average rate is US
$46/SM. For freehold units the rate is US $4,888/SM.
The retail sector has a very promising future. Notwithstanding
the instability in the market, the retail sector has remained
strong. The average rate in the retail sector is US $48/SM.
The promising nature of the retail market is mainly attributed
to the capita income and increased consumer spending.
There is also a strong demand for warehouses in Qatar with
the average at US $18/SM.
Warsaw At A Glance
conversion 0.72 eur = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR
low High low High Vacancy
cItY center offIce
New Construction
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction
Class A (Prime)
Class B (Secondary)
IndustrIal
EUR 300.00
EUR 264.00
EUR 192.00
EUR 186.00
EUR 180.00
EUR 132.00
EUR 336.00
EUR 300.00
EUR 240.00
EUR 198.00
EUR 198.00
EUR 168.00
$
$
$
$
$
$
38.71
34.06
24.77
24.00
23.23
17.03
$
$
$
$
$
$
43.35
38.71
30.97
25.55
25.55
21.68
20.00%
6.20%
8.00%
25.00%
5.20%
10.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
EUR 45.00
N/A
N/A
EUR 65.00
N/A
N/A
$
$
$
5.81
3.23
5.42
$
$
$
8.39
4.32
7.74
19.00%
N/A
N/A
City Center
EUR 900.00 EUR 1,080.00 $ 116.13 $ 139.35 1.30%
Neighborhood Service Centers EUR 72.00 EUR 120.00 $ 9.29 $ 15.48 N/A
Community Power Center (Big Box)
Regional Shopping Centers/Malls
Solus Food Stores
EUR 400.00
EUR 180.00
EUR 120.00
EUR 600.00
EUR 300.00
EUR 144.00
$
$
$
51.61
23.23
15.48
$
$
$
77.42
38.71
18.58
N/A
N/A
N/A
deVeloPment land low/m 2 High/m 2 low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
EUR 2,000.00 EUR 3,000.00 $ 11,241,285.19 $ 16,861,927.79
EUR 300.00 EUR 950.00 $ $1,686,192.78 $ 5,339,610.47
EUR 65.00 EUR 100.00 $ 365,341.77 $ 562,064.26
N/A N/A N/A N/A
EUR 1,500.00 EUR 2,500.00 $ 8,430,963.90 $ 14,051,606.49
EUR 300.00 EUR 900.00 $ 1,686,192.78 $ 5,058,578.34
Doha City At A Glance
conversion 3.64 Qar = 1 us$ RENT/M 2 /Mo US$ RENT/SF/YR
low High low High Vacancy
cItY center offIce
New Construction
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
QAR 185.00
QAR 165.00
N/A
QAR 170.00
QAR 140.00
QAR 70.00
QAR
QAR
QAR
QAR
QAR
260.00
197.00
N/A
220.00
180.00
145.00
$ 56.66
$ 50.53
N/A
$ 52.07
$ 42.88
$ 21.44
$ 79.63
$ 60.34
N/A
$ 67.38
$ 55.13
$ 44.41
15.00%
10.00%
N/A
2.00%
5.00%
2.00%
Bulk Warehouse
QAR 30.00 QAR 65.00 $ 9.19 $ 19.91 10.00%
Manufacturing
High Tech/R&D
retaIl
City Center
Neighborhood Service Centers
Community Power Center(Big Box)
Regional Shopping Centers/Malls
Solus Food Stores
QAR 90.00
N/A
QAR 680.00
QAR 175.00
N/A
QAR 425.00
QAR 165.00
QAR
QAR
QAR
QAR
QAR
150.00
N/A
810.00
325.00
N/A
630.00
220.00
$ 27.56
N/A
$ 208.26
$ 53.60
N/A
$ 130.17
$ 50.53
$ 45.94
N/A
$ 248.08
$ 99.54
N/A
$ 192.95
$ 67.38
N/A
N/A
0.00%
0.00%
N/A
N/A
10.00%
deVeloPment land low/m 2 High/m 2 low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
QAR 18,500.00 QAR 24,000.00 $ 20,567,845.99 $26,682,611.01
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
QAR 5,920.00 QAR 31,000.00 $ 6,581,710.72 $ 34,465,039.22
QAR 1,250.00 QAR 21,000.00 $ 1,389,719.32 $ 23,347,284.63
2012 Global Market Report n www.naiglobal.com 57