Special Market Report, Issue 80: Poland

Special Market Report, Issue 80: Poland


The dynamic increase of investments value – Poland
– the most attractive country in Central and Eastern Europe region for foreign investors

Maria Zielinska
– Market Analyst – Horwath HTL Poland (email: mzielinska@horwathhtl.com)
DARIUSZ FUTOMA – Director – Horwath HTL Poland (email: dfutoma@horwathhtl.com}

Both the favorable macroeconomic environment and the increased visibility of Poland in international markets brings hope
to the country becoming a leading tourism destination in the future. In 2015, the total number of foreign tourists amounted 16,7 million tourists, which represents a 4,5% increase in comparison to 2014. According to the forecast of Ministry of Sport and Tourism, the number of foreign tourists will exceed 18,7 million in 2020. The gradual increase in occupancy and average rates may result in an increased interest in the Polish hotel market by Polish and foreign investors. Compared to other Central European countries, Poland is an attractive alternative for investors looking for new, stable markets.

According to OECD GDP growth is projected to strengthen to around 3% annually in 2017-18, thanks to higher social transfers, low interest rates and rising disbursements of EU funds. Increasing disposable income and consumption, the switchover to the new budgetary period for EU funds and diminishing spare capacity should lead to an acceleration in investment.
As a result, there is an active office supply market, led by Warsaw as well as other major Polish cities such as Gdansk, Cracow, Poznan, Wroclaw, and Lodz. According to Jones Lang La Salle office market in Poland continue to progress and it is still dominated by Warsaw with 56% share of the market. In Q1-Q3 2016, approximately 691,300 m2 of modern office space entered the market in Poland, almost 350,750 m2 of which came in Q2 alone. The largest openings in Q1-Q3 2016 included: Warsaw Spire (59,100 m2), Q22 (46,400 m2), Gdański Business Center D (29,300 m2), Proximo I (28,700 m2) and Eurocentrum Office Complex Delta (25,000 m2) all in Warsaw, Tryton Business House (21,300 m2), in the Tri-City; O3 Business Campus I (19,200 m2), in Kraków; and University Business Park B (18,700 m2), in Łódź.
Development activity remains strong in Poland, with more than 1,430,000 m2 under construction.

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