Positive propects for Poland will see retail investment revival

According to Savills, Poland will see a revival in retail investment as this sector is set to become one of Europe’s 2010’s hot spots. The international real estate advisor is forecasting a tripling in volume of investment activity in 2010 when compared to 2009.

Poland, MIPIM’s 2010 guest of honour, was the only EU country to show positive GDP growth in 2009 (1.7% in Poland against -4.7% EU27), and with the fourth quarter representing 65% of the annual investment 2009 turnover Savills anticipates 2010 turnover to reach between €1.5 to €2.0 billion. This is against €600 million in 2009.

Brian Burgess, head of Savills Poland, says: “Prospects for consumer growth in Poland are one of the best in Europe with forecast increases in spending and salaries. This will fuel demand for retail stock from more international market players. New developments are offering good opportunities and prices are attractive reflecting 7.00 % yields for prime shopping centres compared to 6.00% averages across other European countries.”

New retail stock delivered in 2009 amounted to about 950,000 sq m in Poland with a further 700,000 sq m currently under construction. Despite seeing some caution from domestic retailers in 2009, international chains such New Look, TK Maxx and Tous entered the market. At the same time Poland’s investment market saw demand from German, French, Spanish and Australian investors in 2009 as prices stabilised.