Building land in short supply, getting more expensive – JLL
06:00
The situation in Poland’s building land market was last year defined by the dwindling supply of attractive sites and growing prices, according to the latest report by JLL. As a result, many developers have in recent months been turning to plots of developed land that require demolition, renovation or remodeling work, the study said.
Residential developers have been finding it difficult to replenish their portfolios of sites because of intense competition and high price levels that often make projects hardly profitable. As a result, some companies have become more open to the idea of expanding into regional cities.
The situation in the market for office sites has generally been more stable, except for such attractive locations as Warsaw, Kraków and Gdańsk which are seeing the most demand and where prices are expected to keep growing this year. In the retail property market, developers have been seeking sites for smaller formats and looking at smaller cities.
The year 2018 showed the potential of the hotel property market – according to JLL, approximately 30 companies were last year looking for sites for new hotels in Poland. Mixed-use projects continue to enjoy popularity with more cooperation between developers from different markets sectors being anticipated this year.
