The publication identifies potential investment opportunities on the Polish retail market in small cities. This report is released in six parts, which are published on the quarterly basis - the third part focuses on South-West Poland (Dolnośląskie & Opolskie voivodships).

The report provides an overview of retail markets in cities with populations between 30 – 100 thousand inhabitants. Cities are analysed in terms of both existing and planned modern retail supply, as well as economic indicators, such as unemployment rate and purchasing power. Based on the results of this analysis the map of retail gaps is created. The map defines new ‘trade routes’, which cover the cities with high potential due to the combination of limited supply of modern retail space and favourable economic parameters.

Such potential gaps are alternatives to larger cities, which are already relatively well served in terms of existing retail space. Smaller cities can present an interesting option for investors who wish to gain exposure in new and prospective locations. The map of new ‘trade routes’ may become the first step in identifying locations which offer real opportunities for successful development.” – comments Dominika Jędrak, Director of Research and Consultancy Department at Colliers international.

Some interesting findings from Colliers’ report:

  • Close proximity to the western border may have a positive impact on retail potential of Dolnośląskie and Opolskie voivodships. Zgorzelec is a very good example as its shopping centres are also visited by German clients;
  • Lubin is a unique city, with very high purchasing power of its inhabitants (30% higher than the average for Poland);
  • In the majority of analysed cities there is still potential for new retail schemes tailored to local needs;
  • Nysa has the highest retail potential, as at the moment there is no modern shopping centre there;
  • Świdnica, Jelenia Góra and Kędzierzyn-Koźle have been identified as cities with the highest investment risk due to existing and planned retail supply, as well as the variety of available retail offer, especially in the first two cities;

Extensive market knowledge supported by years of experience and devised analytical methods, enable us to support investors in the decision-making processes, identifying opportunities and threats and possible scenarios resulting from the changing market conditions.” – adds Dominika Jędrak

Research and Consultancy Department at Colliers International undertakes research and advisory services for Clients in the area of Polish real estate market in particular; office, retail, industrial and hotel. Services provided by the Department include economic analysis and market studies of the real estate market with respect to future market trends, feasibility study, competition analysis, investment strategies, analysis of the location, etc.