Europe’s logistics sector is entering another phase of growth, driven by lasting structural changes, including the continued expansion of e-commerce, the transformation of global supply chains, the rise of nearshoring and growing expenditure on defence and broader security-related investment. Poland is at the centre of these developments thanks to its strong market fundamentals, large domestic consumer base, strategic location and cost advantages.
According to the latest analysis by Knight Frank, the future of the logistics market will be shaped not only by the overall level of demand, but above all by the quality of assets, their location and their ability to meet the changing needs of occupiers. Markets offering modern infrastructure, access to major transport corridors and the capacity to support increasingly complex distribution models are particularly well positioned.
“Poland has all the key advantages required to benefit from the next wave of change in the European logistics market. It is simultaneously a large consumer market, an important manufacturing hub and one of the most significant links in European supply chains. The growing importance of nearshoring, the expansion of e-commerce and continued infrastructure investment will support demand for modern warehouse space in the years ahead,” says Przemysław Piętak, Director and Head of Industrial Agency at Knight Frank.
E-Commerce Remains a Major Driver of Demand
The continued development of online retail will remain one of the most important factors supporting the logistics market. In Poland, e-commerce is expected to increase its share of total retail sales from approximately 10% today to more than 23% by 2032.
This will generate further demand for modern warehouse facilities designed to accommodate automation, particularly in urban locations that allow companies to manage last-mile deliveries efficiently.
The expansion of Asian e-commerce platforms will provide an additional boost to the market. Chinese operators currently account for less than 5% of Poland’s warehouse stock. However, changing distribution models and the drive to shorten delivery times may encourage them to expand their presence in Europe, including in the Polish market.
Nearshoring Strengthens Poland’s Position as a European Manufacturing Hub
Changes in global supply chains are encouraging companies to move production closer to their target markets and reduce their dependence on distant manufacturing locations.
According to forecasts, the share of production carried out locally, or onshore, is expected to increase from 41% to 48% in the coming years. Poland and other Central and Eastern European countries are natural beneficiaries of this trend due to their competitive labour and energy costs, developed industrial base and access to Western European markets.
The growing number of manufacturing investments will also increase demand for warehouse space supporting industrial operations, from the storage and delivery of components to the distribution of finished products.
Defence Spending Supports Industry and Supply-Chain Development
Rising defence expenditure is another factor influencing the European economy. Poland plans to allocate approximately 4.8% of its GDP to defence in 2026, the highest level among NATO member states.
Although the defence sector’s impact on the property market is expected to be primarily indirect, increased manufacturing activity and the development of supplier and subcontractor networks could generate additional demand for industrial and logistics space.
“Poland’s logistics market remains one of the most promising segments of the European commercial property sector. We are seeing occupiers increasingly look beyond costs when making decisions. Supply-chain resilience, infrastructure availability, automation potential and locations that provide operational flexibility are becoming increasingly important. Poland is very well placed to meet these requirements and will therefore remain one of the region’s key growth markets,” says Dorota Lachowska, Head of Research at Knight Frank.
The Market’s New Phase Will Favour Quality and Strategic Locations
The next development cycle in the logistics sector is expected to be more selective. The greatest opportunities will be available to modern facilities located in well-connected areas and designed to meet occupiers’ growing requirements in terms of automation, energy efficiency and operational flexibility.
Thanks to its combination of strong economic fundamentals, expanding infrastructure and growing importance within European supply chains, Poland remains one of the key markets that will shape the future of European logistics.
Source: CEO.com.pl
