Poland 2nd largest shopping centre market in CEE

Although Poland kept its position as the second largest shopping center market in the CEE (after Russia), only 171,000 sqm of new space was completed in H1 2015, according to a report compiled by Cushman and Wakefield. While extension projects (4 schemes, 70,000 sqm) were primarily undertaken in centers within larger cities, new shopping center schemes (101,000 sqm of new space) were completed in towns with populations below 100,000. In H2 2015, Poland is expected to extend its shopping center market by 358,000 sq.m with the 50,000 sqm Zielone Arkady in Bydgoszcz and the 46,000 sqm Sukcesja in Łódź as key pipeline projects. However, shopping center density of 249.8 sqm/1,000 population is believed to be close to saturation and investors are looking for other opportunities turning to retail parks as viable alternatives. “With the annual shopping centre supply at approximately 500,000 sqm Poland is one of the fastest growing retail markets in Europe. This is expected to continue over the next two or three years with the delivery of Posnania providing nearly 100,000 sq.m and Metropolia in Gdańsk in 2016. The saturation level that is on par with that of Western Europe will rise strongly, impacting on vacancies and rents in the long term, particularly in older schemes that do not meet constantly growing customer expectations," said Magdalena Sadal, Senior Researcher Consultant, Valuation & Advisory, Cushman & Wakefield.