From the experts
By Jeroen van der Toolen, Managing Director, GHELAMCO POLAND
My key word on the EU and Poland's entry to it is ACCELERATION.
Poland's EU accession is one of the biggest events in the EU's history: the EU is not simply increasing its surface area and its population, it is putting an end to the division of our continent.
Ghelamco has witnessed the transformation of the Polish economy - and the real estate market in particular - almost from the very beginning (i.e. from 1992) and we look forward to continuing our business operations after May 1, 2004, as we are strongly convinced of the market's potential. Poland's EU accession may attract potential newcomers and open up new sources of finance. We expect the maturing of the Warsaw real estate market to continue/accelerate and hope that market transparency will improve, but this probably will not result in any sudden or dramatic changes in market conditions in terms of demand, rents and yields.
In the increasingly interdependent world of the 21st century, it will be even more necessary to make use of the advantages of the free flow of people, services, goods and money, and we hope the Warsaw real estate market will benefit from that as well.
By Hadley Dean, Managing Director, Colliers International Poland
EU membership will have a profound impact on all sectors of the local property market and on our businesses over the medium to long term. In the near term, we expect new benchmark investment yields across all sectors, while accelerating volumes of leasing activity - particularly in the industrial market - are anticipated.
What impact will the EU have on the Polish market in 2004? Will Warsaw become another Berlin, with rents as low as e6? Will demand increase as global companies look to invest in Poland in order to increase market share in the new found stability? Many of these unanswered questions will be answered in 2004.
I believe that the Warsaw market has bottomed out and will consolidate with steady demand over the coming year. If construction prices start to rise, we may even see headline rents on new developments slightly increase at the end of 2004.
We will not see a flood of new businesses coming into Poland directly after the accession to the EU. However, a lot of occupiers at the end of this and next year will be quite aggressively looking at how they are going to increase their market share and head count.
By Alan Colquhoun, Managing Director, DTZ
In many ways the benefits of EU membership on the property market have already been accrued. By this I mean the recent surge in institutional investor activity - recent demand has outstripped the supply of good investment grade product and yields have already fallen by about two percent in the last 18-24 months. At least EU-based investors should be able to do deals a little more quickly in that they will no longer need to wait a few months for an Interior Ministry permit.
On a personal note, I am very happy to see this happen [Poland's entry to the EU]. I have lived in the CEE for 11 years now (in Prague from 1993-99 and since then in Poland) and the differences in everyday life are phenomenal. Of course, the biggest change for the people is that they are (politically, if not always economically) free to visit other countries. The message I would want to send to existing EU countries is: Welcome these new states with open arms and give their people the right to live and work in your countries too. For heaven's sake, get your own houses in order before being overcritical of the state of affairs here!
I hope the biggest effort from all within the EU will be on making its institutions function better, reducing bureaucracy, and on initiatives that improve trade and prosperity among its members. My real fear is that the whole thing will become unworkable, chiefly as a result of political dogma.
By Jason Sharman MRICS, Managing Director, King Sturge
The real estate industry is occupier-led and what developers and investors really want to know is whether EU accession will bring about an increase in demand for office, retail and logistics space, which will thereby decrease vacancy rates, increase rental levels and justify new projects.
Higher expendable income should lead to an improvement in retail sales and a strengthening of development in this sector. The logistics sector is heavily influenced by the retail industry and we anticipate an increase in demand for warehouse and distribution properties. The relaxation in border controls will also encourage manufacturers to purchase and construct their own properties around Poland.
It is likely that the office market will follow behind the logistics market by six to twelve months. Many of the major international businesses are already present and any new firms are likely to be local start-ups and medium-sized international firms, typically requiring 200 to 500 square meters. As a consequence, developers will have to tailor their new projects to allow greater flexibility for smaller occupiers.
By Jolanta Nowakowska-Zimoch, Partner, Lovells Law Firm
We can expect that after May 1, 2004, the inflow of foreign investment into Poland will increase, and that this will not only include the large-scale investments of international holdings but also those of smaller firms, which generally prefer to locate their capital in countries where the investment risk is minimized.
We are also prepared to advise Polish companies on the legal opportunities they can use to improve their position in Poland and present the legal options they have to develop their activities in the other EU member countries. After EU enlargement, the existing legal and economic barriers dividing the EU market from the markets of the acceding countries will suddenly disappear: customs duties (including anti-dumping duties, which have not always been imposed objectively) will be lifted, which will leave EU markets wide open to Polish products. Our country will then start to be perceived as a country with a decreasing investment risk and its existence and functioning within the framework of the EU will make Polish economic policy more predictable and 'civilised.'
By Renata Kusznierska, Head of the DTZ Zadelhoff Tie Leung Retail Agency
In my opinion, Poland will become a more reliable partner for other European countries after joining the EU. Adjusting the law to EU norms and standards is the key issue, which could result in accelerating the decision-making process for both domestic as well as foreign investors. The same legal regulations for all EU countries will encourage a number of retail chains to enter the Polish market, which they've been waiting to do for a long time. I think that within two or three years after Poland enters the EU, the rental rates in shopping centers will stabilize and will be proportionate to turnover per square meter.
Entering the EU is just the beginning of a long journey, as Poland has to go through all the necessary adjustment procedures. Therefore, I don't think that we will see a dramatic economic improvement immediately, as this will be a long-term process and we will know the results within a couple of years' time.
Poland has been waiting for this moment for a long time and has been trying to bring everything in line with EU standards. Poland has always been an important partner for other European countries because of its size and potential, which allows it to compete in many business sectors. The date May 1 is just a formal confirmation of what has been a fact for a long time.
By Magdalena Gniazdowska, Cushman & Wakefield Healey & Baker
The potential of the Polish market is very attractive to cross-border retailers. There are still a lot of retailers that are searching the CEE markets and waiting for accession, and I think that after a few months we will experience these companies' expansion in the region. The benefits will come from lower taxes and access to a larger market. Accession for cross-border companies also means lower risks.
A further important result is that there will be some Polish retailers that will expand into EU countries in order to gain access to a bigger market.
The Polish economy has been relatively stable. Interest rates are falling, but inflation is under control and GDP is still good. This same optimism is shared by developers, so we should see a significant increase in shopping center floorspace of over 38 percent in 2004-2005. Retail rents are on the level of a market balance that is encouraging developers and retailers to new projects. There are an increasing number of very well designed and located projects in the city center.
The real union will come after accession to monetary union, which will be a crucial time for the Polish retail market. At the moment, this topic is raising a lot of questions with regard to the exchange ratio risk.
By Dr. Michael de Jong-Douglas, First Vice President Country Officer Central & Eastern Europe ProLogis
With EU accession, our customers are increasingly looking for locations that will serve as regional distribution points, rather than looking at Poland or other countries as single markets. We are being asked to come up with regional solutions that fit into pan-European networks. I am working more and more often with ProLogis colleagues in France, Germany and the UK, and alongside the directors of property of our customers on these transactions.
EU accession will have a positive impact for most business sectors, with a few negatives as the markets open up. There will be no 'big bang' after May 1, with everything changing from one day to the next, but rather a gradual introduction of regulations and processes.
We will continue to see a greater demand for distribution space in the market, with customers increasingly looking for larger buildings to use as regional hubs. I think that there will be more international investment in the real estate market, although as the high returns that a few enjoyed in the early stages of development, in the mid to late 90s, are for the most part gone, some investors will have to move to more dynamic markets elsewhere to meet their return criteria.
When I first started working in Hungary in 1992, EU accession was seen as being only a few years away. It took a few more years than that, but for me it always seemed natural that Central European countries would be part of the EU. Change has been drastic, perhaps more than many other countries realize, and in many cases painful in both economic and social terms. Today, Poland and other Central European countries are economically integrated into the EU and I would argue that in the medium term (after a bit of integration pain) the accession of these countries will be extremely positive for the EU as a whole.
By John Palmer, Managing Director, CB Richard Ellis
Improvements in infrastructure supported by EU funding will enable many distribution and logistic companies to develop their networks in Poland, which will result in the growth of the industrial sector. EU entry will be more advantageous for companies with foreign capital, for big rather than small companies, and for companies offering more sophisticated services, such as complex logistic services, shipping services and courier services.
It will be less advantageous for companies offering less sophisticated services, such as simple transportation, storage and customs duty services. Not all Polish private companies will be able to cope with the new challenges and only one in every fifth Polish logistics company is likely to be able to survive in the long term.
Polish companies with the best access to capital sources, such as strategic alliances and those that offer the highest added-value and margins on selling their services, are the most likely to survive.
Logistics firms that have connections with foreign partners and whose services feature high added-value such as shipment services, complex logistic services and courier services, will also benefit more from EU accession.
There will be continued growth of warehousing stock because of the larger market and a continued trend for users to upgrade their facilities to larger logistics buildings.
By Markus J Leininger, Head of the Central European Property Lending Division, EUROHYPO AG
EU accession will not lead to any 'big bang' on the investment market in Poland because of the lack of product in almost every sector. Nevertheless, investors of the institutional type are approaching the Central European investment market as a whole, because most of them will be allowed to invest there from May 1, 2004. Further portfolio deals, like Apollo's retail deal in Poland, are potentially on the radar screens of investors. Such portfolio transactions will have a more regional approach rather than concentrate on one country.
By Padraic Coll, Director of KeyInvest
Poland's EU accession has had a huge effect on the business of KeyInvest, since Q4 2003. The level of interest that has translated directly into investment (mainly in property but also in small businesses of up to 100 employees) has increased significantly. The removal of the final legal obstacle to Poland's entry, with Ireland's acceptance of the Nice Treaty, was for me the catalyst that rejuvenated the market after the attacks of September 11. The fact that after May 1, Poland will be in the EU will have an indirect stabilizing effect on the property market, as a significant amount of the foreign investment that comes to any country entering the EU will have already arrived.
Looking ahead, I am worried that in some quarters it is assumed that the hard work is behind Poland, but in reality it has only started. EU entry will facilitate Poland's development but it does not guarantee it. A lot has been achieved since 1989 and Poland should rightly be proud of it, but just because Poland is the largest country entering the EU on May 1 doesn't automatically mean that it will get the lion's share of investment. It seems to me that some people in positions of power have forgotten that.
By Jerzy Szczepanik-Dzikowski. Architect and Partner, JEMS Architects
Poland is a big market that needs foreign investment, and investors trust architects with whom they have a good relationship. With the expansion of the EU, foreign architects will enjoy the right to practice in Poland and will arrive along with any new investors. It's unlikely, however, that many Polish architects will be traveling in the opposite direction, as Poland will not be investing heavily in other EU countries.
Architectural services are, however, cheaper in Poland, and this should open up competition in the design market for those Polish architects who can provide design services of the same quality as their foreign counterparts.
Political and economic stability is essential for investment and real estate market expansion. EU investors will carefully observe the reduction of Poland's internal debt, and, if this can be solved, the Polish market should become attractive for investors.
I am personally concerned, however, that despite the obvious benefits brought in by the EU, the 'common market' will also bring with it the standardization of production and consumption, 'crazy liberalism' with its questionable social values and norms, and bureaucratic madness, which is worse than our own because it is not our own. EU economic power will force us to accept its rules.
By Aleksandra Zentile-Miller, Director, Chapman Taylor International Services
The increased interest in the Polish real estate market by a new wave of investors and developers over the last 12 months has introduced changes to the ways of working for those professionals and investors/developers already operating in Poland. A sometimes frantic review of current stock has taken place, which has resulted in the halting of current projects, the rejuvenating of old ones, and the buying and selling of sites and buildings both old and new. Some of those that had already invested in this market then decided to cash in on their efforts. As Poland matures as a market of lesser returns for diminished risks, some investors will withdraw, while others will move to other countries or activities offering higher rewards.
Money has already been spent in Poland, but not necessarily well and not always on good architecture or contributions to local communities. EU accession will affect our lives positively by creating a more stable, professional and transparent business climate and give us better environments to live and work in.
With Poland's EU accession, I hope that after so many decades delay, Poles will now begin to enjoy, and also respect, the access to freedoms and privileges they have been denied because of historical circumstances, and that their energies can be re-directed towards creative self-criticism and constructive, dynamic attitudes.
By Alex Kloszewski, General Manager, InterContinental Warszawa
Poland's accession to the EU will open a new chapter in the Polish hospitality industry. We will not be able to feel the impact of it from the very beginning, but it will most certainly open up new perspectives. We are counting on medium- and small-sized companies who never previously thought about visiting and who will come and invest and explore the new possibilities in Poland. This new interest will make people visit for both shorter and longer periods of time, which is why we have introduced a new service to the Polish hotel market, in the form of 75 luxurious Residence Suites with kitchenettes.
We are also counting on EU representatives to visit Poland more often, as there will be a lot of post-accession projects. There will also be delegations from the European Parliament. Five star hotels and the services they offer are dedicated to these target groups.
I am also expecting a greater need for rooms and conference space, as it is still a very underdeveloped sector of the hospitality industry in our country. The need for development here can be clearly seen by the example of the 2004 European Economic Summit, which is being held in Warsaw this week. In my opinion it is not only a political gesture. There will be more and more conferences of this kind after EU accession and we have to be prepared for that.
By Marek Dąbrowski, Managing Director, Hotel Atrium Sp z o.o.
There are some long-term and short-term issues. I don't think that, apart from a few conferences that will take place in Poland, there will be much drastic change in the short term. In the longer term, I think Warsaw and Poland will become a lot more visible and will become increasingly accessible psychologically to people from the current EU.
I recently read an article about two Dutch women who took a few hundred pictures and wrote a book about the countries that will join the EU, and they were amazed to learn that in Holland people didn't realize that Poland was closer to their country than Spain or Greece. Joining the EU will make people aware that we are close and part of the same group of nations.
The second issue is the improved business situation. I think EU accession is going to have an impact on new investment, though perhaps not involving big companies. Mid-sized companies, however, will be looking for a market to set up operations in and this will create a significant inflow. There is also the open sky policy, which will benefit cities serviced by an airport, such as Warsaw, Gdańsk and Kraków, because I think other discount airlines will start flying to these destinations. So we will witness significant impact from tourists who would not otherwise visit here.
My key word on the EU and Poland's entry to it is ACCELERATION.
Poland's EU accession is one of the biggest events in the EU's history: the EU is not simply increasing its surface area and its population, it is putting an end to the division of our continent.
Ghelamco has witnessed the transformation of the Polish economy - and the real estate market in particular - almost from the very beginning (i.e. from 1992) and we look forward to continuing our business operations after May 1, 2004, as we are strongly convinced of the market's potential. Poland's EU accession may attract potential newcomers and open up new sources of finance. We expect the maturing of the Warsaw real estate market to continue/accelerate and hope that market transparency will improve, but this probably will not result in any sudden or dramatic changes in market conditions in terms of demand, rents and yields.
In the increasingly interdependent world of the 21st century, it will be even more necessary to make use of the advantages of the free flow of people, services, goods and money, and we hope the Warsaw real estate market will benefit from that as well.
By Hadley Dean, Managing Director, Colliers International Poland
EU membership will have a profound impact on all sectors of the local property market and on our businesses over the medium to long term. In the near term, we expect new benchmark investment yields across all sectors, while accelerating volumes of leasing activity - particularly in the industrial market - are anticipated.
What impact will the EU have on the Polish market in 2004? Will Warsaw become another Berlin, with rents as low as e6? Will demand increase as global companies look to invest in Poland in order to increase market share in the new found stability? Many of these unanswered questions will be answered in 2004.
I believe that the Warsaw market has bottomed out and will consolidate with steady demand over the coming year. If construction prices start to rise, we may even see headline rents on new developments slightly increase at the end of 2004.
We will not see a flood of new businesses coming into Poland directly after the accession to the EU. However, a lot of occupiers at the end of this and next year will be quite aggressively looking at how they are going to increase their market share and head count.
By Alan Colquhoun, Managing Director, DTZ
In many ways the benefits of EU membership on the property market have already been accrued. By this I mean the recent surge in institutional investor activity - recent demand has outstripped the supply of good investment grade product and yields have already fallen by about two percent in the last 18-24 months. At least EU-based investors should be able to do deals a little more quickly in that they will no longer need to wait a few months for an Interior Ministry permit.
On a personal note, I am very happy to see this happen [Poland's entry to the EU]. I have lived in the CEE for 11 years now (in Prague from 1993-99 and since then in Poland) and the differences in everyday life are phenomenal. Of course, the biggest change for the people is that they are (politically, if not always economically) free to visit other countries. The message I would want to send to existing EU countries is: Welcome these new states with open arms and give their people the right to live and work in your countries too. For heaven's sake, get your own houses in order before being overcritical of the state of affairs here!
I hope the biggest effort from all within the EU will be on making its institutions function better, reducing bureaucracy, and on initiatives that improve trade and prosperity among its members. My real fear is that the whole thing will become unworkable, chiefly as a result of political dogma.
By Jason Sharman MRICS, Managing Director, King Sturge
The real estate industry is occupier-led and what developers and investors really want to know is whether EU accession will bring about an increase in demand for office, retail and logistics space, which will thereby decrease vacancy rates, increase rental levels and justify new projects.
Higher expendable income should lead to an improvement in retail sales and a strengthening of development in this sector. The logistics sector is heavily influenced by the retail industry and we anticipate an increase in demand for warehouse and distribution properties. The relaxation in border controls will also encourage manufacturers to purchase and construct their own properties around Poland.
It is likely that the office market will follow behind the logistics market by six to twelve months. Many of the major international businesses are already present and any new firms are likely to be local start-ups and medium-sized international firms, typically requiring 200 to 500 square meters. As a consequence, developers will have to tailor their new projects to allow greater flexibility for smaller occupiers.
By Jolanta Nowakowska-Zimoch, Partner, Lovells Law Firm
We can expect that after May 1, 2004, the inflow of foreign investment into Poland will increase, and that this will not only include the large-scale investments of international holdings but also those of smaller firms, which generally prefer to locate their capital in countries where the investment risk is minimized.
We are also prepared to advise Polish companies on the legal opportunities they can use to improve their position in Poland and present the legal options they have to develop their activities in the other EU member countries. After EU enlargement, the existing legal and economic barriers dividing the EU market from the markets of the acceding countries will suddenly disappear: customs duties (including anti-dumping duties, which have not always been imposed objectively) will be lifted, which will leave EU markets wide open to Polish products. Our country will then start to be perceived as a country with a decreasing investment risk and its existence and functioning within the framework of the EU will make Polish economic policy more predictable and 'civilised.'
By Renata Kusznierska, Head of the DTZ Zadelhoff Tie Leung Retail Agency
In my opinion, Poland will become a more reliable partner for other European countries after joining the EU. Adjusting the law to EU norms and standards is the key issue, which could result in accelerating the decision-making process for both domestic as well as foreign investors. The same legal regulations for all EU countries will encourage a number of retail chains to enter the Polish market, which they've been waiting to do for a long time. I think that within two or three years after Poland enters the EU, the rental rates in shopping centers will stabilize and will be proportionate to turnover per square meter.
Entering the EU is just the beginning of a long journey, as Poland has to go through all the necessary adjustment procedures. Therefore, I don't think that we will see a dramatic economic improvement immediately, as this will be a long-term process and we will know the results within a couple of years' time.
Poland has been waiting for this moment for a long time and has been trying to bring everything in line with EU standards. Poland has always been an important partner for other European countries because of its size and potential, which allows it to compete in many business sectors. The date May 1 is just a formal confirmation of what has been a fact for a long time.
By Magdalena Gniazdowska, Cushman & Wakefield Healey & Baker
The potential of the Polish market is very attractive to cross-border retailers. There are still a lot of retailers that are searching the CEE markets and waiting for accession, and I think that after a few months we will experience these companies' expansion in the region. The benefits will come from lower taxes and access to a larger market. Accession for cross-border companies also means lower risks.
A further important result is that there will be some Polish retailers that will expand into EU countries in order to gain access to a bigger market.
The Polish economy has been relatively stable. Interest rates are falling, but inflation is under control and GDP is still good. This same optimism is shared by developers, so we should see a significant increase in shopping center floorspace of over 38 percent in 2004-2005. Retail rents are on the level of a market balance that is encouraging developers and retailers to new projects. There are an increasing number of very well designed and located projects in the city center.
The real union will come after accession to monetary union, which will be a crucial time for the Polish retail market. At the moment, this topic is raising a lot of questions with regard to the exchange ratio risk.
By Dr. Michael de Jong-Douglas, First Vice President Country Officer Central & Eastern Europe ProLogis
With EU accession, our customers are increasingly looking for locations that will serve as regional distribution points, rather than looking at Poland or other countries as single markets. We are being asked to come up with regional solutions that fit into pan-European networks. I am working more and more often with ProLogis colleagues in France, Germany and the UK, and alongside the directors of property of our customers on these transactions.
EU accession will have a positive impact for most business sectors, with a few negatives as the markets open up. There will be no 'big bang' after May 1, with everything changing from one day to the next, but rather a gradual introduction of regulations and processes.
We will continue to see a greater demand for distribution space in the market, with customers increasingly looking for larger buildings to use as regional hubs. I think that there will be more international investment in the real estate market, although as the high returns that a few enjoyed in the early stages of development, in the mid to late 90s, are for the most part gone, some investors will have to move to more dynamic markets elsewhere to meet their return criteria.
When I first started working in Hungary in 1992, EU accession was seen as being only a few years away. It took a few more years than that, but for me it always seemed natural that Central European countries would be part of the EU. Change has been drastic, perhaps more than many other countries realize, and in many cases painful in both economic and social terms. Today, Poland and other Central European countries are economically integrated into the EU and I would argue that in the medium term (after a bit of integration pain) the accession of these countries will be extremely positive for the EU as a whole.
By John Palmer, Managing Director, CB Richard Ellis
Improvements in infrastructure supported by EU funding will enable many distribution and logistic companies to develop their networks in Poland, which will result in the growth of the industrial sector. EU entry will be more advantageous for companies with foreign capital, for big rather than small companies, and for companies offering more sophisticated services, such as complex logistic services, shipping services and courier services.
It will be less advantageous for companies offering less sophisticated services, such as simple transportation, storage and customs duty services. Not all Polish private companies will be able to cope with the new challenges and only one in every fifth Polish logistics company is likely to be able to survive in the long term.
Polish companies with the best access to capital sources, such as strategic alliances and those that offer the highest added-value and margins on selling their services, are the most likely to survive.
Logistics firms that have connections with foreign partners and whose services feature high added-value such as shipment services, complex logistic services and courier services, will also benefit more from EU accession.
There will be continued growth of warehousing stock because of the larger market and a continued trend for users to upgrade their facilities to larger logistics buildings.
By Markus J Leininger, Head of the Central European Property Lending Division, EUROHYPO AG
EU accession will not lead to any 'big bang' on the investment market in Poland because of the lack of product in almost every sector. Nevertheless, investors of the institutional type are approaching the Central European investment market as a whole, because most of them will be allowed to invest there from May 1, 2004. Further portfolio deals, like Apollo's retail deal in Poland, are potentially on the radar screens of investors. Such portfolio transactions will have a more regional approach rather than concentrate on one country.
By Padraic Coll, Director of KeyInvest
Poland's EU accession has had a huge effect on the business of KeyInvest, since Q4 2003. The level of interest that has translated directly into investment (mainly in property but also in small businesses of up to 100 employees) has increased significantly. The removal of the final legal obstacle to Poland's entry, with Ireland's acceptance of the Nice Treaty, was for me the catalyst that rejuvenated the market after the attacks of September 11. The fact that after May 1, Poland will be in the EU will have an indirect stabilizing effect on the property market, as a significant amount of the foreign investment that comes to any country entering the EU will have already arrived.
Looking ahead, I am worried that in some quarters it is assumed that the hard work is behind Poland, but in reality it has only started. EU entry will facilitate Poland's development but it does not guarantee it. A lot has been achieved since 1989 and Poland should rightly be proud of it, but just because Poland is the largest country entering the EU on May 1 doesn't automatically mean that it will get the lion's share of investment. It seems to me that some people in positions of power have forgotten that.
By Jerzy Szczepanik-Dzikowski. Architect and Partner, JEMS Architects
Poland is a big market that needs foreign investment, and investors trust architects with whom they have a good relationship. With the expansion of the EU, foreign architects will enjoy the right to practice in Poland and will arrive along with any new investors. It's unlikely, however, that many Polish architects will be traveling in the opposite direction, as Poland will not be investing heavily in other EU countries.
Architectural services are, however, cheaper in Poland, and this should open up competition in the design market for those Polish architects who can provide design services of the same quality as their foreign counterparts.
Political and economic stability is essential for investment and real estate market expansion. EU investors will carefully observe the reduction of Poland's internal debt, and, if this can be solved, the Polish market should become attractive for investors.
I am personally concerned, however, that despite the obvious benefits brought in by the EU, the 'common market' will also bring with it the standardization of production and consumption, 'crazy liberalism' with its questionable social values and norms, and bureaucratic madness, which is worse than our own because it is not our own. EU economic power will force us to accept its rules.
By Aleksandra Zentile-Miller, Director, Chapman Taylor International Services
The increased interest in the Polish real estate market by a new wave of investors and developers over the last 12 months has introduced changes to the ways of working for those professionals and investors/developers already operating in Poland. A sometimes frantic review of current stock has taken place, which has resulted in the halting of current projects, the rejuvenating of old ones, and the buying and selling of sites and buildings both old and new. Some of those that had already invested in this market then decided to cash in on their efforts. As Poland matures as a market of lesser returns for diminished risks, some investors will withdraw, while others will move to other countries or activities offering higher rewards.
Money has already been spent in Poland, but not necessarily well and not always on good architecture or contributions to local communities. EU accession will affect our lives positively by creating a more stable, professional and transparent business climate and give us better environments to live and work in.
With Poland's EU accession, I hope that after so many decades delay, Poles will now begin to enjoy, and also respect, the access to freedoms and privileges they have been denied because of historical circumstances, and that their energies can be re-directed towards creative self-criticism and constructive, dynamic attitudes.
By Alex Kloszewski, General Manager, InterContinental Warszawa
Poland's accession to the EU will open a new chapter in the Polish hospitality industry. We will not be able to feel the impact of it from the very beginning, but it will most certainly open up new perspectives. We are counting on medium- and small-sized companies who never previously thought about visiting and who will come and invest and explore the new possibilities in Poland. This new interest will make people visit for both shorter and longer periods of time, which is why we have introduced a new service to the Polish hotel market, in the form of 75 luxurious Residence Suites with kitchenettes.
We are also counting on EU representatives to visit Poland more often, as there will be a lot of post-accession projects. There will also be delegations from the European Parliament. Five star hotels and the services they offer are dedicated to these target groups.
I am also expecting a greater need for rooms and conference space, as it is still a very underdeveloped sector of the hospitality industry in our country. The need for development here can be clearly seen by the example of the 2004 European Economic Summit, which is being held in Warsaw this week. In my opinion it is not only a political gesture. There will be more and more conferences of this kind after EU accession and we have to be prepared for that.
By Marek Dąbrowski, Managing Director, Hotel Atrium Sp z o.o.
There are some long-term and short-term issues. I don't think that, apart from a few conferences that will take place in Poland, there will be much drastic change in the short term. In the longer term, I think Warsaw and Poland will become a lot more visible and will become increasingly accessible psychologically to people from the current EU.
I recently read an article about two Dutch women who took a few hundred pictures and wrote a book about the countries that will join the EU, and they were amazed to learn that in Holland people didn't realize that Poland was closer to their country than Spain or Greece. Joining the EU will make people aware that we are close and part of the same group of nations.
The second issue is the improved business situation. I think EU accession is going to have an impact on new investment, though perhaps not involving big companies. Mid-sized companies, however, will be looking for a market to set up operations in and this will create a significant inflow. There is also the open sky policy, which will benefit cities serviced by an airport, such as Warsaw, Gdańsk and Kraków, because I think other discount airlines will start flying to these destinations. So we will witness significant impact from tourists who would not otherwise visit here.
