Land prices drop in Katowice

Colliers International has prepared a mid-year report on the investment sector in Poland including the land market.

According to the analytics, the market witnessed a stabilization of land prices in the first half of 2013. However, the report says that Katowice was a city where the land prices have dropped the most.

Statistically, the price of land needed to build 1 sq. meter of residential usable space in H1 2013 in Katowice was lower than in the previous year by 7% (by 3% in the center of Warsaw).

The biggest decline in the price of land for office space was also observed in Katowice (12%) as well as in TriCity (8%), while the smallest was in Warsaw, where the price of 1 sq. meter of office development site fell by 2-3% and stayed at a level similar to residential development sites.

Land prices for retail development have stabilised and it seems that they will remain unchanged in the forthcoming months for both traditional shopping centers and retail parks.

Colliers expects that Katowice will remain the second tier market for land buyers and the most popular cities will be Warsaw, Kraków and Wrocław both for land intended for office as well as residential developments.