The future’s bright, the future’s Poland, says leading retail real estate company

Poland’s retail real estate sector is a particularly good bet for investment. In picture: shopping centre Krupówki in Zakopane. Marcin Czechowicz/PAP

Poland’s astronomical rise to economic powerhouse in just under three decades has made it a key emerging market for investors.

Now, with the Central European country set to be reclassified as a developed country, joining the ranks of the 24 best economies in the world, it is seen as a less risky investment option, particularly when it comes to the retail real estate sector.

Investment in the retail real estate sector is generally considered a safe bet as far as investments go because in times of crisis consumers still need to buy basics.

“Generally speaking, the retail sector survives better than some others during times of economic downturn. Even when times are hard people need to buy food, they still buy clothes, kids still need shoes, in short, even when people’s spending power becomes more limited they do still have to spend,” says Hadley Dean, CEO of retail property owner EPP in a LinkedIn post.

Retail real estate, furthermore, is more stable than the retail sector more broadly because it absorbs the risk of seasonal volatility that inevitably comes with retail consumer activity.

Poland’s retail real estate sector, Dean argues, is a particularly good bet for investment on account of Poland’s imminent reclassification as a ‘developed’ economy, joining the strongest economies in the world. And as Poland’s GDP is projected to continue to rise, so does investment growth potential.

“While Poland’s counterparts across Europe are facing a variety of issues, Poland’s burgeoning middle class continues to grow, and to spend, which is propelling it further ahead,” says Dean.

Additionally, Poland’s relative lack of real estate property market saturation only further emboldens the country’s strong investment potential.

“There are a number of other reasons things look good in Poland. The country’s retail markets aren’t oversaturated the way its western counterparts are.

“As we develop the retail real estate market here we have the advantage from learning from the mistakes made by the United States and the UK when they over-developed and focused on the wrong things,” says Dean.

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