Polish retail market sees largest growth in nine years with 530,000 sqm of new space in 2024

The Polish retail market experienced its strongest expansion in nearly a decade, with developers delivering 530,000 square meters of modern retail space in 2024. This marks the highest annual supply since 2015, when approximately 700,000 square meters of new retail space entered the market, according to a report by Cushman & Wakefield.

Despite some closures amounting to 49,000 square meters, the total modern retail space in Poland increased by 481,000 square meters, bringing the overall market size to approximately 16.8 million square meters.

By the end of 2024, developers were actively constructing 375,000 square meters across 50 commercial properties, including 34 new developments, 13 expansions, and three renovations of existing facilities. The Silesian Voivodeship emerged as the most active region for new retail projects, with 52,000 square meters under development, followed by the Mazovian Voivodeship with 42,000 square meters. Notably, 65% of the new retail space is being developed in towns with populations of less than 50,000, while 21% is concentrated in major urban centers with over 400,000 inhabitants.

The year 2024 also saw the introduction of 26 new brands to the Polish retail market, a figure comparable to the 30 brand entries recorded in 2023. The fourth quarter of 2024 alone brought in notable brand debuts such as MR.DIY, Santoni, Isei, Andre Tan, PHOme!, and Atac Hiper Discount by Auchan, along with the return of the Calliope brand. Warsaw attracted four of these new entrants, while Poznań and Zabrze welcomed two and one, respectively.

The number of visitors to Polish shopping centers remained consistent with 2023 levels, averaging 410,000 customers per facility throughout the year. The highest footfall growth was recorded in Wrocław, Kraków, and Warsaw, whereas Poznań and the Tri-City region experienced the lowest increases. The largest shopping centers, those exceeding 60,000 square meters, and the smallest ones, with less than 20,000 square meters, saw the highest visitor numbers.

In terms of financial performance, the average turnover of tenants in shopping centers exceeded PLN 1,050 net per square meter, reflecting a 4.5% nominal increase compared to 2023. However, after accounting for inflation, which averaged 3.6%, the real increase in turnover was relatively modest.

Prime retail space in the best shopping centers experienced a 23% year-on-year rise in rental rates, driven by high demand, ongoing modernizations, and increased attractiveness of key properties. Retail parks, which continue to dominate new supply, recorded similar rental growth over the past year. Additionally, rental rates for retail premises along Poland’s top shopping streets saw a 17% annual increase.

Cushman & Wakefield also reported a decline in retail vacancy rates across sixteen major urban centers, with the average vacancy rate falling to 3% in 2024, representing a 0.3 percentage point decrease from the previous year. The highest vacancy rates were observed in Lublin (4.8%) and Poznań (4.6%), while the lowest rates were recorded in Toruń and Kielce (0.8% each) and Rzeszów (0.9%).

The report highlights a positive outlook for Poland’s retail sector, driven by sustained demand, new brand entries, and the ongoing expansion of modern retail space across the country.

Source: Cushman & Wakefield and ISBnews