Currently, there are 413 shopping malls in Poland.
According to the expert company summary of H1 2018 of the Polish retail market, the general Polish retail stock has about 14 million sqm including malls (71%), retail parks and warehouses (27%), outlet centers (2%).
A representative of expert company says that the total retail stock increased by 168,000 sqm in the first 6 months of 2018. Malls occupied about 130,000 sqm and would add almost 200,000 sqm by the beginning of 2019. The situation is not the same across Poland. Wrocław and Poznań are well developed while Szczecin would probably see the rise of emporiums.
Currently, there are 413 shopping malls in Poland.
Another representative of expert company pointed at the fact that Poland does not have as many shopping malls as Western European countries have. But there are plenty of projects which are among the most attractive ones in Europe. A lot of shopping malls are located outside the main cities. In 2018, half of these malls were located in small cities. The market is growing and expert companytries to catch up with the rest of Europe in terms of quality.
According to expert company estimations, the first six months of 2018 showed €1.87 billion of retail deals, while €1.75 billion were transacted in the first three months of 2018. Q2 is rather quiet but still, investors show much interest in the local retail property market. Also, the company predicts that investments in this sector for 2018 will be more than €3 billion in volume and this is the strongest outcome on this market so far.
The most significant deal was performed by ARES/AXA/Apollo Rida and Griffin – sale of twenty-eight commercial properties for €1 billion from the first company to the latter one. In addition, the market saw a few minor transactions in Q2 in several cities.
The main profits were demonstrated by the major malls and that is 4.9%, while prime retail parks will trade at about 7.0%.
The recent trading ban act forced owners of retail shops to do adjustments in the way they conduct business and also analyze the results of sales and customers’ behavior. But changes in customers’ expectations are already obvious. They want to see the proper mix of quality renters, good restaurants and entertainment offers.
Based on that, more leisure variants and outlet formats appear. Takeovers are another trend.
As for rental costs, Warsaw remains the most expensive. Prices in the main cities remain stable – €50 / sqm / month on average.
