Witold Zatoński, Founder of Syrena Real Estate, talked to Property Forum about the profitability of revitalizing older office buildings, the challenges related to such projects and the development of the PRS market in Poland.

According to a report prepared by Newmark Polska, development and occupier activity is focused on Poland’s six core warehouse markets: Warsaw and its suburbs, Upper Silesia, Central Poland, Lower Silesia, Greater Poland and the newcomer - Pomerania. Nearly 89% of the construction activity is concentrated in these regions, which accounted for almost 84% of the total leasing volume for the first three quarters of 2023. Meanwhile, a slight rental correction is being observed in some locations and industrial parks.

Many industry discussions have long chalked up the retail market as an industry in deep recession, with very bleak prospects. According to the participants of the retail panel at the Future of Real Estate 2023 conference in Warsaw in November, the retail industry in Poland is not only not dying, but is regaining vigour and investor interest. The event was co-organized by Property Forum and RICS.

Interest in leasing offices in Poland is growing. In the third quarter, both in Warsaw and on the regional markets, the demand for office space was the highest this year. In the regions, 2023 will close with a result similar to the record from 2019. 

Globalworth has been granted significant funding in the form of a €145 million bank loan for three flagship properties in Warsaw.

According to Cushman & Wakefield, leasing activity bounced back strongly on the Polish industrial market in Q3 2023. Meanwhile, development activity was largely driven by pre-lets and BTS projects, with rental rates remaining flat in most regions.

7R is launching its next project in Pomerania. Construction of 7R Park Gdańsk III in Barniewice has just started. Complex SAD has become the first tenant. The company was represented in the negotiations by Newmark Polska consultants.

As elsewhere, the investment market in Poland is struggling with high interest rates and financing costs. Some asset classes though, such as flats for rent and warehouses, remain a desirable commodity among investors - this is how the panel discussion focusing on investment and financing trends at Future of Real Estate 2023 can be summarised. The event was organised by Property Forum and RICS in Warsaw this week.

Bank Pekao, in collaboration with Berlin Hyp AG granted a €125 million investment loan to Promenada Shopping Mall. Pekao is also acting as the Loan and Security Agent for the transaction.

At the corner of Pańska Street and Wronia Street in Warsaw, the construction of the underground part of the first phase of the mixed-use project Towarowa 22 is coming to an end. In addition to offices, the Office House building offers retail spaces and attractive green areas. This is a promise of a joint project by companies belonging to the Echo Investment Group and AFI Europe.