According to the latest data from the advisory firm Savills, the retail sector in Poland has experienced solid growth compared to other European countries. The total volume of investment transactions in the first three quarters of 2024 reached nearly 2.5 billion euros, marking a 51% year-on-year increase and exceeding the total results from 2023 by over 20%. Approximately 25% of the invested funds went into the retail sector. This result makes Poland an attractive market for global investors, drawing both large transactions and investments in smaller properties located in regional areas.
Poland’s Retail Market in the Context of Europe: Dynamic Growth in Eastern Europe
The European retail market has experienced stable growth. Across Europe, the value of transactions for the first three quarters of 2024 amounted to 19 billion euros, reflecting an average increase of 6% compared to the same period last year. The retail markets in Eastern Europe, particularly Poland and Hungary, have shown greater dynamism, surpassing the European average. The retail sector in Poland is developing with a strong focus on implementing ESG principles and upgrading and expanding spaces.
Retail Sector: A Key Segment of the Polish Market
In Poland, the retail sector attracted about 25% of all investments in the commercial real estate market, with its value already surpassing 2023’s total results by 43%.
Investor activity in the retail market is further confirmed by additional transactions announced in the last quarter of the year, including the purchase of Magnolia Park in Wrocław, Silesia City Center in Katowice by NEPI Rockcastle (total value close to 780 million euros), and retail parks in Myszków and Włocławek bought by BIG Poland (total value exceeding 56 million euros). Other retail properties that changed ownership in the last quarter include Galeria Wisła in Płock and Galeria Szperk in Gdańsk.
These data confirm that the Polish retail sector is heading towards its best results since 2019.
– In Poland, 2024 brought significant growth in the retail market, reflected in numerous major transactions. Stable economic fundamentals and the increasing popularity of formats such as retail parks are attracting attention from both local and international investors. This provides an optimistic outlook for the sector’s development in 2025 – emphasizes Paulina Stach, Director of Property & Asset Management Retail at Savills.
The Rising Popularity of Retail Parks and Omnichannel Strategies
Retail parks play a key role in the development of local markets. These facilities, often located in smaller cities, meet the needs of local communities by offering convenience and a wide range of services.
At the same time, the importance of omnichannel strategies, which combine physical and online retail, is growing. Investors recognize the potential in developing modern spaces that integrate traditional shopping with digital experiences, aligning with a broader European trend.
Market Stability in Europe
Compared to other European countries, Poland stands out with its dynamic growth, while the average across Europe was 6%. Very good results are also seen in countries like Ireland (+107%), Italy (+83%), and Hungary (+34%). Across Europe, the most attractive investment segments remain retail parks (28%), shopping centers (26%), and high street retail (18%), with prestigious locations like Via Montenapoleone in Milan and rue Saint-Honoré in Paris dominating transactions.
Modernization and New Challenges
The further development of the Polish market will require modernization and adjustments to meet consumer needs. In Europe, investors are increasingly focusing on upgrading older buildings, facilitating their reuse and increasing their value.
Optimistic Outlook for 2025
Savills experts anticipate even higher investor activity in 2025, meaning the investment volume could increase by several percentage points compared to this year. Poland remains one of the most promising markets in the region, offering stability and opportunities for dynamic growth.
Source: managerplus.pl
