Market insight by Colliers International

Colliers International presented its summary on the investment market in Poland „Market Insights. Annual Report 2016”. The analysts summed up key figures concerning office, industrial and retail markets after twelve months of the last year.

© Colliers International; Polish office market in figures at the end of 2015
© Colliers International; Polish office market in figures at the end of 2015

„2015 was a good year for the real estate market. The total investment volume amounted to ca. EUR 4.1 billion. Poland remains the leading market in the CEE region, which was further characterized by ever-growing liquidity and upward pressure on pricing. Investors are still searching for various kinds of properties, not only in Warsaw but what is worth mentioning-mainly in regional cities. Last year, demand was strong across all asset classes with great interest in retail projects, which constituted 57%. Additionally, an impressive appetite for corporate deals was noted” – commented Monika Rajska-Wolińska, managing partner at Colliers International.

In case of the Katowice office market, the last year was characterized by a moderate supply increase, according to the analysts. Only two projects were completed: phase II of A4 Business Park (9 100 sq. meters) and the second building of Silesia Business Park (10 700 sq. meters). Currently, 48 000 sq. meters are under construction. Tenant activity was stable and amounted to 45 900 sq. meters. Pre-let transactions constituted 22,3%. The vacancy rate in Q4 2015 increased to 15,4% in comparison to 13,2% recorded at the end of 2014. The office space for lease in Katowice – excluding owner-occupied buildings – amounted to 298 000 sq. meters at the end of the last year.

The supply in Upper Silesia – the second-largest Polish industrial market – stood at 1,75 million sq. meters. In 2015, 147 600 sq. meters was delivered to the market within eight projects. There are eight projects under construction totaling approximately 100 000 sq. meters. During the past 12 months, demand for industrial space constituted 0,5 million sq. meters, which makes Upper Silesia the second largest industrial market after Warsaw (all three zones). In 2015, 80 agreements were signed of which 60% constituted new agreements. The vacancy rate declined to 5,5% at the end of 2015 (compared with 8,5% in the corresponding period of time in 2014). The largest deal in Upper Silesia (and the third largest deal in Poland in 2015) was noted in Prologis Park Chorzów where Moto Profil leased 33 104 sq. meters (renegotiations).

The Upper Silesia retail market remained the second biggest in Poland after Warsaw and offers 46 shopping centers totaling 1,1 million sq. meters of leasable area. The density ratio stands at 525 sq. meters/1 000 inhabitants. In the course of 2015 two new schemes were delivered to the market (Galeria Galena in Jaworzno – 31 000 sq. meters and Supersam in Katowice – 20 600 sq. meters). Further projects including Gemini Tychy (36 000 sq. meters) and Quick Park Mysłowice (16 000 sq. meters) remain under construction and are supposed to be delivered to the market in 2016-2017. Currently, the vacancy rate at the end of December 2015 was 3,8% and rental rates were at the level of EUR 43-45 sq.m/month.