By Rafał Kwiatkowski
We have just passed the first anniversary of Poland ascending to the most developed countries list on the S&P, and while the worldwide conversation has turned to possible slowdowns, Poland is still probably one of the nations who are best poised to avoid negative growth or a recession. My colleague addressed our reasoning on that in this article. While the Polish government has room to make adjustments in debt levels and is taking actions that will stimulate consumer spending such as expansions of child credits and pensions, there is some simple legislation that would have a very positive effect that it could do right now: namely passing REIT legislation.
What is a REIT?
A REIT, simply put, is a way everyday investors can invest in commercial real estate. REIT stands for real estate investment trust. When an investor buys shares in a REIT, they are getting small portions of real estate held in a portfolio managed by a corporation that is publicly traded.
Poland needs a REIT law
Polish citizens can’t invest in REITs because there isn’t any legislation allowing for it. This would be simple legislation for the government to pass and would have a positive effect on the economy, especially now that Poland, like the rest of the world, will have to deal with economic fallout from trade wars and slowdowns in our neighbors’ economies.
Currently Poles are limited by the lack of REITs in the country. The property sector is a great vehicle for creating wealth and should be more open to investors in the country. It would be a great vehicle for people to invest their retirement savings.
Our company, EPP, operates similar to a REIT in the retail commercial property sector. The benefits of this type of investment are well outlined by my colleague in this article. EPP has been limited in terms of attracting investors due to the lack of this critical legislation. We are a proud Polish company and would like to be more accessible to Polish investors.
When one considers the massive benefits REITS provide to both professional investment companies and private citizens across a nation, we have to wonder why we don’t already have this legislation.