„Footsteps in the Market"

The first half of the year ended on a rather gloomy note for the Polish investment market, with transaction values significantly lower than the previous year. The access to capital was greatly restricted by rising interest rates throughout Europe as well as the yields on government bonds. In addition to all that, the political uncertainty and sluggish economy also had an adverse impact on the situation. Nevertheless, a few spectacular acquisitions did take place, and there are some signs in both the domestic and international arenas that the coming year could be considerably better. Unfortunately, some forecasts have also been much more pessimistic.

„Storing up Demand"

The still-uncontested leader of the real estate industry is the warehouse and industrial sector – new construction is continuing at a brisk pace, while the leasing and selling of properties remains healthy. However, project financing remains a challenge, and many tenants are starting or planning to optimise their occupied space. E-commerce is no longer growing as rapidly as it was, and another crucial sector for warehouses, the logistics industry, is clearly anticipating a lean year. Nevertheless, there is hope for an eventual end to the war in Ukraine – and Polish companies could be among the main beneficiaries of the country's reconstruction.

„The 100-meter office race"

The economic uncertainty has also left its mark on the office sector, which is now being viewed cautiously by investors – at least judging by this year’s transactions. However, the uncertainty has helped to spur the growth of the coworking and flexible office space segment as well as subleasing. An increasing supply gap is becoming more evident, intensifying the competition for space, especially in modern, state-of-the-art buildings. After years of tenants dominating, the balance of power has been shifting as, in some sectors, developers have been gaining the upper hand.

„Trolleys Surge to the Front"

Around 20 pct of modern retail space in Poland is now located in retail parks, which are continuing to sprout up in both major cities and small towns. Large malls are no longer being built, as the attention of owners and investors increasingly turns towards local centres as well as properties suitable for renovation or expansion. Footfall is increasing and shopping baskets are getting fuller, while new retailers are making their debuts on the Polish market. It seems that e-commerce has not permanently changed our shopping habits, as consumers return to brick-and-mortar stores in large numbers.

"Five stars on a white and red background"

Hotel and accommodation facilities in Poland are experiencing record occupancies, with guests coming from both the eastern border and Western European tourists. Regaining confidence in Poland as a comfortable and safe vacation destination, they are flocking to the Vistula River in large numbers. Operators are pleased, even though new facilities are being opened sporadically in Poland, and there are virtually no transactions. What needs to happen for capital to regain trust in this sector, and when can it happen?

„The Only Way is Up… the Elevator"

The housing sector, following the decline in the investment volume in 2022 by almost a third, seems to be regaining some of its former strength, with an additional boost coming from the Polish government’s 2 pct Safe Credit programme. Optimistic announcements are also being made by build-to-rent developers, who expect to end the year with double the volume of new product compared to 2022 – despite the ongoing currency risks and the high cost of financing. Joint ventures and build-to-rent platforms are flourishing, as are mergers and acquisitions.

„Stuck in Concrete”

An upswing has failed to materialise for the construction sector, which over the last year has experienced a noticeable slowdown, partly due to the sluggish residential and public investment sectors. Commercial developers have also not been providing much business for builders, as many projects have been put on hold – except perhaps when it comes to warehouses and retail parks. Will the construction industry manage to navigate its way through another challenging year?