By Wojciech Jurga, Managing Partner at Scallier

The retail real estate boom currently observed in Poland is driven primarily by investments in retail parks. Over the last five years, retail parks have evolved from a market niche into the leading format within the retail sector, doubling their number across the country. The pace of new developments remains at a record-high level.

This transformation is mainly the result of aligning the product with the expectations of private capital, which is currently a key driver of market growth. Retail parks offer a simple and transparent lease structure, predictable cash flows, and a relatively low entry threshold. An investment project can be undertaken with capital involvement starting at approximately PLN 10 million.

Secure Mechanism and Predictable Cash Flow

The real rate of return, secured by long-term lease agreements, amounts to 7–8 percent annually before tax. With the use of bank financing, the cash-on-cash return increases to over a dozen percent.

Income stability is supported by annual rent indexation based on inflation indicators (approximately 3.5–4 percent) as well as by the optimization of service charges. Additionally, with a well-structured tenant mix and properties in good condition, there is potential for rental rate growth of several euros per square meter.

Banks currently view the risk profile of this segment favorably. Long-term lease agreements with nationwide and international retail chains, typically denominated in euros, are of key importance. New retail parks are primarily designed to meet their location requirements, both in mid-sized cities and in smaller urban centers.

Retail Park Demand

In large cities, the retail space market is already largely saturated. New developments are now focused on county-level towns and smaller urban centers with populations exceeding 15,000–20,000 residents. Plots of 1–2 hectares with strong visibility and direct access to national or regional roads are particularly attractive from an investment perspective. The race to secure such land is ongoing, and competition in the market is becoming increasingly intense.

On the other hand, sourcing investment land in some locations is not especially difficult, as plot owners approach us directly with proposals. They often do not necessarily intend to sell the land, but rather wish to invest in it. In such cases, our role is to assess the site’s potential, secure financing, carry out the development process, oversee commercialization, and manage the retail park. As a result, investors receive a turnkey financial product offering a satisfactory rate of return.

This is how retail parks are created—often becoming distinctive and well-regarded facilities in their local areas, widely used by residents and a source of pride for their owners. We also deliver projects developed on land secured by our company when investors provide capital only. The investment model is flexible. One of the ongoing challenges, however, is the growing complexity of administrative procedures, which extend the project delivery timeline.

Unprecedented Share of Polish Capital in Investments

As a result of the evolution of the retail market in recent years, retail parks in Poland now operate as a predictable investment product resilient to economic fluctuations. In 2025, the value of commercial real estate investment across the six main Central and Eastern European markets reached €11.6 billion, of which €4.5 billion was generated by Poland. Domestic investors accounted for approximately €860 million of the capital invested in the commercial real estate sector.

The share of domestic capital in the total investment volume reached a record 20 percent last year, increasing by more than half year-over-year. This is a clear signal of the ongoing professionalization of Polish market participants, who are operating with increasing efficiency in conditions of market uncertainty — conditions that often pose a barrier to foreign investors.

Retail parks are playing an increasingly important role in this context. The rise in the number of completed acquisitions in this segment in 2025, as well as the portfolio transaction involving Vendo Parks, confirm the growing liquidity and attractiveness of this asset class. Retail parks are attracting both specialized investment entities and affluent private investors who previously had not allocated capital to real estate but are now actively seeking such opportunities.

At the same time, the absence of regulations in Poland enabling the operation of REITs limits the institutionalization of domestic capital. The introduction of such instruments could significantly increase the participation of Polish investors in large-scale transactions.

Investment Foundations

Further portfolio transactions involving retail parks and the entry of new investors into the market are expected this year. From an investor’s perspective, Poland remains a market with solid fundamentals. Dynamic GDP growth, low unemployment, rising wages, and moderate inflation continue to support private consumption. Poland’s accession to the group of the world’s most developed economies stands as evidence of the effectiveness of the market transformation that has taken place over the last decade.

The Polish economy is one of the fastest-growing in the European Union. Further robust growth is forecast, accompanied, among other factors, by rising retail sales. Retail chains are also betting on this trend, which is why dozens of new brands debut on the Polish market each year, seeking cost-efficient and well-located retail space.

Despite record new supply—amounting to approximately 500 thousand sq m delivered in 2025—the retail park market is characterized by a very low level of available space. The high occupancy rate confirms the stability and effectiveness of this business model. The sector is currently in a favorable investment phase, offering significant growth potential.

Trends and Outlook

Today, the investment process for retail parks is based on proven and repeatable schemes, both in terms of space configuration and tenant selection. The scale of newly launched projects is increasing. Retail parks ranging from several thousand to several tens of thousands of square meters are being developed, functioning not only as local shopping destinations but increasingly as local centers of community activity.

The offering of dining options in retail parks is steadily expanding, and the number of fashion tenants is growing. Alongside traditional grocery, industrial, and discount operators, the food, fashion, and service segments are developing. Restaurants, cafés, fitness clubs, beauty salons, children’s entertainment centers, medical facilities, and even car showrooms are appearing.

Retail parks have become one of the most valued investment segments. High transactional liquidity, a growing share of domestic capital, solid macroeconomic fundamentals, and sustained tenant demand create strong prospects for the further development of this format. In the coming years, stable expansion of the segment can be expected.