CBRE: Poles‘ purchasing power increased by 44% and Varsovians’ by 37% from 2019 to 2023

by   CIJ News iDesk III
2024-06-06   11:24
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The purchasing power of Poles has increased by almost 44% and that of Varsovians by 37% from 2019 to 2023, according to a report by CBRE, which cites GfK data. In addition, the capital's status as a business centre and the high number of tourists encourage luxury shopping, which is why luxury brands are increasingly willing to invest in Warsaw.

According to CBRE's report ‘Shopping Streets in Warsaw’, the increase in affluence that Poland has seen in recent years has favoured the development of shopping streets in Poland's largest cities, and investors are particularly attracted to the capital, where more and more restaurants and luxury hotels are also appearing on the main streets.

"As wealth increases, the group of potential consumers of luxury goods is growing. This draws the attention of investors, who are increasingly considering locations on representative streets in the capital. The strict centre of Warsaw has a long-standing shopping tradition, exemplified by places that have been well-known for years, such as Domy Towarowe Centrum. Nowadays, shoppers are not only residents of Warsaw, but also employees of the surrounding office buildings and tourists. The potential of high traffic is not only used by trade, but also by hotels and catering. Particularly after the pandemic, we have seen the development of the culinary offer. New players include chain restaurants, but also private businesses, including many proposals from the Ukraine. Also, new Western gastronomic concepts have started to enter Poland and are looking for places to develop their high street business," said associate director, High Street Retail, CBRE Karolina Kunciak.

There are more and more representative places on the capital's map that attract luxury brands, but two locations dominate. Trzech Krzyży Square, together with the adjacent streets - Mysia Street, Mokotowska Street, Bracka Street and the Vitkac department store - is currently one of the two most exclusive shopping destinations in Warsaw. It is here that Omega, Mont Blanc or Rolex have located their shops, and soon the Italian brand Bulgari will open its first boutique in Poland. The second important location is Piłsudski Square, which is home not only to fashion boutiques, but also to interior accessories and restaurants, it was stated.

According to Credit Suisse data quoted in the report, the value of wealth per adult in Poland will be almost USD 53,000 in 2022, while 10 years earlier this value was approaching USD 33,000. Additionally, between 2017 and 2022, the average wealth of a Pole increased by 24.4%. In turn, GFK data shows that the purchasing power of Poles between 2019 and 2023 increased by almost 44 per cent, while that of Varsovians increased by 37 per cent.

CBRE also highlighted in the report that Warsaw is one of the most visited Polish cities, with 4.6 million people arriving for leisure in 2023. In addition, Warsaw was awarded by tourists from 178 countries in the European Best Destinations ranking as the best tourist destination in Europe in 2023. Last year, the capital was most visited by travellers from Ukraine, the United States, the United Kingdom, Germany and Lithuania. A significant proportion of visitors came from Western Europe and the USA, i.e. countries with high purchasing power.

With the growing number of tourists and the development of business in Warsaw, new hotel brands began to appear that had not previously been present in Poland, such as Barcelo Powiśle, Raffles Europejski, Nobu Hotel, Hotel Verte by Marriott. Five-star facilities attract affluent customers who are potential buyers of luxury goods. In addition, such hotels create new space in premium locations for exclusive brand locations, it stressed.

Source: CBRE and ISBnews

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