In spring 2014, Poland celebrated the 25th anniversary of the Round Table Talks and the agreements that put an end to the People’s Republic of Poland and led to the democratic system. This year it is also celebrating the 10th anniversary of joining the European Union. These two events have had a relevant impact on the development of the Polish real estate. The infographic underlines how the political background after 1989 impacted the economy and the development of the country. It shows the major changes after 1989 in the real estate sector focusing on Industrial, Office and Retail.
The first industrial projects in Warsaw took place in 1995. In 1996, the total supply of industrial space in Warsaw stood at 30,500 m2. The year Poland joined the European Union, the total supply of industrial space in Poland was 1 million m2. In 2008, it exceeded 5 million m2 and reached 8 million m2 in 2014.
In 1989, the only office space to rent was in the Palace of Culture and Science and the Marriott. The total office stock grew to 2.5 million m2 in 2004 and exceeded 6.5 million m2 in 2014 with 1 million m2 under construction.
The infographic shows the development of the BPO/SSC sector, which entered the Polish market in 2005. In 2013, according to Tholons, Krakow is among the top 10 global outsourcing locations.
The emerging retail sector, with the introduction of free trade, evolved from Jarmark Europa, an enormous bazaar opened in 1989 in the place of the National Stadium in Warsaw, to a total modern retail stock of over 10 million m2 with modern shopping centres and retail outlets.
Hadley Dean, Managing Partner for Colliers International, Eastern Europe said:
“Ten years in the European Union has given Poland the economic and legal stability that international investors require when making significant capital investments. The real estate market has changed beyond recognition. Between an influx of foreign capital and local corporate growth, we’ve seen the landscape of Polish cities shift. There has been an expansion in commercial real estate development with leading international corporations significantly increasing their capital investments in the country.”
Link to the infographic: http://www.colliers.com//-/media/files/emea/poland/reports/2014/10-years-in-the-eu-how-are-you-poland-2014-en.pdf