January 18, 2012
According to Cushman and Wakefield’s latest Marketbeat report, it’s not all doom and gloom in Europe. While southern countries wrestled with debt crises and austerity measures in 2011, Poland remained a surprising success story.
The CEE’s largest country boasted GDP growth of 3.8% year on year in 2010, with 4% forecast for 2011, making it one of the most dynamic economies in the European Union. Economic stability, efficient internal markets and a qualified work force have created a positive long-term forecast for the country’s investment and real estate sectors.
Favourable macroeconomic conditions continued to drive recovery in the Polish market during the first half of 2011. Transaction volume over the period totalled €960 million, up 23% on the same period last year.
Poland’s real estate market thrived in 2011. The office sector, which accounted for 55% of total deal volume, continued to draw the biggest share of investment interest last year.
The retail market however registered more than three-fold growth in transactional volume compared with the total for the first half of 2010. This figure was boosted by the Atrium European Real Estate’s acquisition of the Promenada shopping centre for €171 million. Established retail outlets in good locations continue to draw major interest in Poland. Shopping centres delivered growing turnover and footfall figures in 2009-2010, although only a few new developments attained 100% occupancy rates prior to opening.
Key economic drivers of internal growth in the first half of 2011 were strong domestic demand, stimulated by an increase in investment and consumer spending. According to the Central Statistical Office, April’s retail sales were the highest, up by 18.6% year on year, which represents 13.6% in real terms.
A leading position
Staying the course in a positive investment climate should sustain further investment growth in 2012. Relatively low investment risk in the region, combined with attractive pricing compared to Western European markets, will help strengthen Poland’s leading position in the CEE investment market.
Want more on Poland? Check out all our analysis on the MIPIM World blog!
This year at MIPIM, a closer look at Poland’s investment market.
Image: Klearchos Kapoutsis