Retail space grows in 2019 at slowest rate for 20 years
The amount of retail space in Poland will grow by about 300,000 square metres in 2019, or by 2.5 percent year on year, the lowest level of new retail supply to the market for 20 years, according to a report by real estate consultancy CBRE.
The report: 'Poland Retail MarketView Q3 2019' explains the low growth through market saturation. CBRE analysts predict that a boom is coming in high street retail, which will result in growing rents, while rents in shopping centres will remain stable.
"The shopping centre market has slowed a little, although the pace of development depends on the size of the city and its retail space saturation," Magdalena Fratczak, head of retail at CBRE, was quoted in a press release as saying. "In the main centres it is ever harder to get an attractive plot, which is why the popularity is rising for rebuilding and modernising existing centres. The smallest cities, with fewer than 100,000 inhabitants, is where up to 84 percent of all projects are being carried out, led by smaller formats, retail parks, which tempt with offers ideally suited to the needs of residents."
"In the future I expect greater interest in renting in retail streets," she continued. "Demand is supported by a steady increase in the buying power of Polish consumers and changing lifestyles. The trend for spending time outside the home is growing."
The report states that: "Average retail density in the eight largest agglomerations (Warsaw, Poznan, Wroclaw, TriCity, Lodz, Szczecin, Krakow and Upper Silesia - PAP) amounted to 522 sq of GLA (Gross Leasable Area - PAP)/1,000 inhabitants at the end of Q3 2019. The highest retails saturation has been observed in the Poznan and Wroclaw agglomerations with a density ratio at 612 and 610 sq m of GLA/1,000 inhabitants, respectively."
The Szczecin agglomeration is the least developed with a level of 390 sq m GLA/1,000 inhabitants, the report states.
The total amount of retail space in Poland stood at 12.1 million sq m at the end of Q3, 3.4 percent more than in the same period last year.