Polish Industrial Market : Stable demand amid declining development activity
The Polish industrial and logistics market demonstrated resilience in the first three quarters of 2024. During this period, 2.1M sq m of new warehouse space was delivered, expanding the sector’s total stock to nearly 34M sq m (+9% Y/Y). Currently, 1.9M sq m are under construction (-22% Y/Y), marking the second-lowest development activity since early 2018. Despite challenges, leasing activity remained stable at 3.8M sq m, with a vacancy rate of 8.0% (+30 bps Y/Y) at the end of September 2024. AXI IMMO, Poland’s largest commercial real estate advisory firm, presents its latest report, “The Industrial Market in Poland, Q1-Q3 2024.”
Grzegorz Chmielak, Head of Valuation and Capital Markets, AXI IMMO, commented: "In recent months, the Polish commercial real estate investment sector has shown signs of stabilization and recovery. The warehouse segment, in particular, has regained momentum after a challenging start to the year. Increasing investor interest in industrial and logistics portfolios is evident in the growing number of ongoing transactions. Fully leased warehouse assets in established core markets remain the most attractive".
Anna Głowacz, Head of Industrial, AXI IMMO, stated: "The Polish industrial market is entering a phase of stabilization, characterized by reduced development activity and a greater focus on tenant-tailored projects. Supply is adjusting to actual tenant demand, fostering more sustainable growth. While leasing volumes remain high, renegotiations account for a significant portion of transactions".
Renata Osiecka, Managing Partner, AXI IMMO, concluded: "Despite declining development activity and challenging macroeconomic conditions, the Polish industrial and logistics market in 2024 demonstrates stability. Investors and tenants continue to recognize the potential in key regions such as Warsaw, Łódź, Upper Silesia, and Lower Silesia, maintaining stable rental rates and offering prospects for further market growth. We anticipate strong tenant activity in Q4, traditionally the best-performing quarter of the year".
