New retail projects in Warsaw picks up momentum

Around 108,000 sqm of retail space was under construction as of the end of H1 2015 in Warsaw, according to a report by JLL. The biggest investment within the agglomeration was Fabryka Wołomin, while in Warsaw itself it was the extension of Wola Park. Additionally, GTC has recently obtained a building permit for Galeria Północna (64,000 sq m of GLA). The cornerstone for this flagship investment will be laid this September. Moreover, construction works on the historic CEDET department store have just begun. Therefore, space on Warsaw's retail market expects a major awakening in the next few years with various types of retail schemes entering the market. “The Warsaw Agglomeration represents the largest Polish retail market in terms of supply, accommodating over 1.11 million sqm of shopping center space. In addition, the spending power of its inhabitants exceeds the national average by 68%. However, with respect to shopping center density per 1,000 inhabitants, Warsaw with a ratio of 437 sqm is one of the least saturated markets in Poland and continues to lag behind other major agglomerations such as Wrocław, Poznań, Tri-City, Łódź, and Kraków. So it comes as no surprise that demand is high for new retail projects in the capital, especially in dynamically developing residential areas," said Anna Bartoszewicz-Wnuk, Head of Research and Consulting at JLL Poland. Available retail stock has been well -absorbed by the Warsaw market and is reflected in one of the lowest vacancy rates countrywide. Monthly prime rents per sq m in the leading shopping centres are €95 - €110, in retail parks €8 - €9 EUR while on main high streets they are around €80 - €90.