27 January, 2011
According to the latest report of DTZ - Property Times 2010, recovery is visible in all sectors of the Polish commercial real estate market. The improving condition of Polish economy caused that Poland has a downturn on the real estate market already behind it.
In 2010, supply on the office space market in Warsaw increased only by 190,000 sq m which is the lowest value recorded in the last 10 years. As a result of improving market conditions, demand for office space is increasing which causes the decrease of the level of vacancies and slow growth of the asking lease rates for the best space which may achieve the level of Euro 25 per sq m in the subsequent 12 months.
In the case of commercial space in 2010 developers commissioned 550,000 sq m. This result means a 57% decline in relation to 2009. DTZ anticipates that in 2011 c.a. 770,000 – 790,000 sq m of the space will be delivered. A significant improvement of moods is visible both of commercial networks and financial institutions providing capital for realisation of developers’ projects in this sector.
The biggest decline in the commercial real estate market in terms of the quantity of new office space was recorded in the warehouse sector. Throughout 2010 only 217,000 sq m of warehouse space were commissioned, which means a 78% decline compared to 2009. Such a low increase of new space was caused by financial crisis and over-supply of the space in the previous years. The majority of projects commissioned in 2010 were realised on a built-to-suit basis which assumes construction of a given facility to the order of a specific firm. It should be noted that after significant decline in interest in the lease of warehouse space in 2009, the subsequent 12 months brought a recovery in this sector and the increase of demand. It is a direct result of a high level of industrial production in Poland.
The second half of 2001 confirms that we are observing a revival on the investment market. The entire 2010 closed with the amount of Euro 1.9 billion invested in commercial properties in Poland. This means an increase by 140% compared to 2010. DTZ estimates that since 1998, Euro 18.7 billion have been invested on the Polish commercial real estate market.