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The City - October 2013

Poland is tempting

To say that the Polish commercial real estate investment market recovered would be an understatement - it is thriving.

The news of the past few weeks is the long-awaited Amazon's entry to Poland. The American giant is going to establish three out of its five new logistics centres for the region in Poland. This information overshadowed the entry of Chinese capital to the Polish market of shopping centres and the overtaking of Silesia City Center by a Chinese governmental fund together with Allianz and ECE. According to analysts' calculations, over EUR 1 billion was invested in Poland by mid-year. In Q3, preliminary agreements worth as much again were signed. Shopping centres, office buildings and warehouses change hands.

This is some great information indeed, confirming the good condition of the Polish real estate market. However, it does not mean that there is only bright future ahead. A large number of investments under development, in spite of limited financing from banks must raise concerns about the increasing vacancy rate. According to some calculations, the vacant space ratio in office buildings in Warsaw may reach even 18 percent. Those who remember the slowdown preceding Poland's access to the EU know what it is related to. Will the office market cope with such a high supply? More in the article entitled Whoever saw, whoever knows. Tenant badly wanted

Those who want to develop must seek new ways. A new development path was taken by one of the giants of the Warsaw office market – Ghelamco. The company has announced that it will not abandon the office sector, but it looks to develop in the retail market. Within the next three years it intends to open five small projects in Warsaw and its area. More about Ghelamco plans in the interview with Jeroen van der Toolen, Managing Director CEE at Ghelamco.


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