Business, Startup, and Real Estate Opportunities in Poland Continue to Attract Investment
Poland has become a popular destination for foreign investors and continues to offer great investment opportunities and bright prospects for startups and business ventures. Ranking globally as no. 27 in entrepreneurship and no. 33 overall, this Central European country with a GDP of $524.5 billion has the largest economy in Central Europe along with favorable tax conditions and low corruption levels.
Poland, currently ranking no. 6 on the global list of the countries with the best investment opportunities, continues to steadily attract an increasing number of investments. Since 2010, many leading international companies transferred portions of their operations to Poland. As 97% of investors remain confident about their investment choice, the country continues to offer a unique blend of factors making it so attractive.
Gateway to Europe
There are many factors making Poland exactly that. It is one of the largest European countries with a highly beneficial strategic geographic location. Its stable economy makes it one of the most favorable European markets. The country boasts rapid growth in infrastructure, transport, and communications. It also offers business access to over 500 million people as potential customers.
Businesses entering Poland find well-educated and multifaceted young professionals aplenty. The national standards and the quality of university education in Poland continue to rise. It is common for young people to seek learning opportunities beyond their basic degree. Students are encouraged to study foreign languages and gain as much practical experience as possible. As a result, an average young professional has high learning potential, the knowledge of at least three foreign languages, a strong focus on results, and a high level of personal organization.
Modern business premises
With the warehouse segment of the real estate market showing unprecedented growth, Poland offers nearly 5 million square meters of storage space. Office space developers are maximizing the benefits of the industry and maintain a strong focus on optimizing operating costs and minimizing expenses. They offer high-quality modern office and warehouse premises suitable for businesses of international standards.
Favorable exchange rate
Although Zloty, the local currency, is still used for all payments in Poland, it has a high exchange rate. Combined with the steady economic growth of the country, this means low prices, higher stability, and greater purchasing power. In addition, the EU has made fund allocations to Poland, largest in its history, to total at EUR 82.5 billion by 2020 while remaining available to foreign investors.
Strategic position and efficient transport infrastructure
Poland, bordering seven nations and having access to the Baltic Sea, provides easy access to Europe and beyond. Undeniable proof of that is The New Silk Road – the highway system joining Poland and Asia.
Poland is steadily climbing the ranks of most startup-friendly countries in the world, taking the seventh place alongside such big players as the United States, the UK, Canada, Israel, India, and Germany. The country has a highly dynamic environment for startups thanks to its modern infrastructure and a population of well-educated young professionals. The new generation of business people and entrepreneurs shows a high level of ambitions, is driven and focused on growth.
CEE real estate leader
In 2018, Poland reached EUR 7.2 billion in investment transactions, ranking first in CEE and marking its fourth consecutive year of real estate investment growth. With warehouse, hotel, and office sectors in the lead, the industry continues to attract international investors with a promising outlook.
Poland is reaching new heights in warehouse leasing numbers. Occupation rates are at their highest, leaving only 6,1% of properties to be leased. With the steady expansion of local businesses and the influx of interest from abroad, the market is predicted to continue growing to meet the strong demand.
Investment in the office sector has grown by 20% from 2006, reaching an all-time high of EUR 2.75 billion. In 2018, most acquisitions took place in Warsaw, with a few lucrative opportunities in the regions. An increase in the quality of business services supports the current trend of office space expansion. The business services segment has over 200,000 employees and remains the fastest growing in the country.
In 2017, industrial investments doubled compared to 2017, producing EUR 1.84 billion in assets, with portfolio transactions having the biggest impact.
This segment of the market totaled EUR 120 million in 2018, ranking second after the warehouse sector. The most notable acquisitions in the industry are Holiday Inn and Park Inn, in Warsaw and Kraków, followed by six Puro Hotels nationwide.
Poland continues to enjoy an increasing flow of international visitors as well as a strong domestic market. Traditional hotels are in serious competition with Air BnB, while customers grow to expect better, more personalized service, quality food and entertainment, as well as flexibility in operations. Business travel is a large part of the industry, followed by leisure visitors. Expert analysis suggests that the current trend will continue, offering investors more opportunities.
The residential market in Poland remains stable, although the experts are predicting slower growth in the coming years. The annual transaction of 20,000 primary market flats in Warsaw still matches the booming numbers of 2006-2007. However, with looming changes in subsidy policies for first-time buyers and an increase in equity and interest rates, the experts are predicting a sales drop until the end of 2019 with an upward trend to follow.
The retail segment offers, perhaps, the least number of opportunities. After 15 years of active development, it seems to have reached its ceiling. Very few locations are available for building big retail centers. The population views shopping centers not only as shopping facilities but also as venues for entertainment and addressing a wider range of needs. Even established malls are having to restructure operations to meet this demand from the buyers, with a growing need for refurbishment and remodeling of the existing facilities.
With such positive investment dynamics over the last few years, it is only natural to question how long the opportunities will remain. Top real estate management agencies agree that with the exception of an unpredictable turn of geopolitics, there is nothing to stop the current trend.
As the global community actively seeks the highest and the safest yielding options, the international markets focus on real estate. Poland market gives a yield of 6%, leaving behind even Germany and the UK. As many big global players lose their positions and markets become overpriced, Poland is gaining a serious competitive edge. Overall, companies leasing premises and bringing business into the country show strong growth projections for the next five to seven years, proving their long-term commitment.
European Business & Investment Summit (EBIS)
Having created such a favorable investment climate, Poland has seen an increased number of investment events that attract many international players.
2019 will mark the 6th European Business & Investment Summit (EBIS) which will take place in Warsaw on 19-20 September. The summit, stretching over two days, welcomes established enterprises, new businesses, startups, and financial institutions. It will host over 500 attendees and feature 30 speakers, including leading global investment experts Paul McFadden and Olga Fleming. The event has the support of over 400 partners and boasts $7 billion in closed deals. It is the perfect opportunity to gain insight and develop investments in the EU. Participating in EBIS, you can:
- Connect with 500 professionals who share a similar focus
- Find new partners
- Connect with experts in law and tax in the EU
- Meet prospective clients
- Share experience with like-minded professionals
- Learn about the policies, rules, and regulations of the EU
- Discover the best European investment strategies
- Gather knowledge about business and taxation in Europe
- Learn how to start a business in the EU
- Promote your services and projects
- Find innovative solutions
- Learn about the highest yielding investment opportunities in the European market
- Benefit from the insight of prominent investment experts
Bringing together hundreds of professionals and prominent experts, EBIS creates a perfect opportunity for startup companies to connect with international investors. Log on to www.ebisummit.com to download your free event brochure and sign up to participate in the summit.