STATISTICS - COMMENTARY ON THE LEASING MARKET FIGURES AFTER THE THREE FIRST QUARTERS OF 2007
Commentary on the leasing market figures after the three first quarters of 2007
In the first three quarters the value of the chattel and real property leasing market amounted to PLN 23,6 bln, an increase of 59.8% compared with the same period in 2006. This figure also exceeds the value of the market in the whole year 2006 by PLN 2 bln.
The value of the chattel leasing market has been estimated at PLN 21.6 bln.
The value of the real property leasing market has been estimated at PLN 2 bln.
Here is a list of investment purchases financed through leasing (the figures in brackets show how the values changed compared to the results after three quarters of 2006):
* road transport vehicles to the value of approximately PLN 14 bln (increase by 67%),
* including passenger cars to the value of approximately PLN 5.2 bln (increase by 69%),
* industrial machines and equipment to the value of approximately PLN 6.7 bln. (increase by 50%),
* computer and office equipment to the value of approximately PLN 384.6 mln (increase by 40%),
* means of rail, aerial and sea transport to the value of approximately PLN 249.4 mln (decrease by 52%),
* other fixed assets to the value of approximately PLN 222.9 mln (increase by 124%).
As the first half of the year, the first three quarters saw a dynamic growth of the road transport vehicles sector which had a 65% share in the chattel leasing market. As before, this growth was mostly triggered by passenger cars, truck-tractors and articulated trailers. The average value of passenger cars leased from January to September was PLN 87,700 and the average contract duration was 40 months. The most rapidly developing sector was the leasing of specialist road transport vehicles such as truck-tractors and all sorts of trailers and semi-trailers. Most of the leased vehicles (86%) were brand new.
The discussed period brought significant growth also to the second basic chattel leasing sector, i.e. industrial machines and equipment. The market share of these products grew from 29 to 31%. For over a year now the sector's best seller was construction equipment (31% of all leased machines and equipment). Its popularity is a result of the increasing demand on construction and fitting services (the construction market in the period was 20.2% bigger than in the first quarters of 2006). The lease of other machines and equipment ranges from 1 to 7% of the general market size. A noteworthy development, the value of the farming equipment market has doubled over the first three 2007 quarters. The average value of farming machines and equipment in the period was PLN 158,000 and the average contract duration 46 months. As in the road transport sector, the leased machines and equipment has also been mostly new (91%).
The only downside was the aerial, sea and rail transport sector. Not unlike the real property market we discussed three months ago, this sector is rather shallow. The value of transactions here averaged PLN 1.2 mln in the three quarters (last year it was 3.5 mln).
The real property leasing market was similarly successful. The value of leased property amounted to PLN 2 bln, a two-fold increase compared to the first three quarters of 2006. Most of value of the real property market came from retail and service establishments (41%) and office buildings (34%). Industrial buildings ranked third with a market share of 19%; hotels and leisure establishments constituted 5%. The average value of leased property was as follows:
* retail and service establishments: PLN 32 mln,
* industrial buildings: 26 mln,
* offices: 15 mln,
* hotels and leisure establishments: 7 mln.
As for contract durations, the longest average contract periods were observed for industrial buildings (150 months) and retail and service establishments (130 months). For office buildings, the average duration was 90 months and for hotels and leisure establishments, 91 months.
We estimate that the value of the new investment portfolio on the real property and chattel leasing market may exceed PLN 32 bln.
Warsaw, 23 October 2007
Prepared by:
Andrzej Sugajski
Director of the Association of Leasing Companies in Poland
(Związek Przedsiębiorstw Leasingowych)