PRCH: Retail space in Poland to grow by around 9% between 2023 and 2025

The volume of modern retail space in Poland will increase by more than 9% between 2023 and 2025, according to PRCH's report "Retail Facilities Market in Poland. Report for the first half of 2023". In Poland, 110 new retail facilities will be built (including 98 retail parks) and 26 existing facilities will be expanded.

Within three years (from 2023 to 2025), the size of modern retail space in Poland will increase by more than 9%. According to data from the Polish Council of Shopping Centres, more than 1.2 million sq m of GLA of modern retail space is currently in the planning, investment preparation or under construction, with opening dates until the end of 2025. In Poland, 110 new retail facilities (including 98 retail parks) will be built and 26 existing facilities will be extended. In total, the investments concern 136 retail parks and centres, outlet centres and mixed-use facilities, according to the report.

Retail space in Poland exceeded 13 million m2 GLA at the end of H1 2023, with an increase of nearly 150,000 m2 GLA in the first six months of this year. Currently, by type of retail facility, shopping centres are responsible for 82% of the space, 16% are retail parks and 2% are outlet centres (outlets).

By the end of 2023, a total of 25 new retail developments of approximately 186,000 m2 GLA are planned to open. In 2024, investors plan to open a further 48 new projects with a total area of approximately 490 thousand m2 GLA. In turn, 37 new developments are expected to open in 2025, with a total area of approximately 344 thousand m2 GLA. The new developments mainly concern very small and small projects of between 2 and 20 thousand m2 GLA. In addition, during the period in question, owners are also carrying out or planning extensions and conversions of existing facilities. In 2023, these concern 10 developments, in 2024 it is 13 projects, and in 2025 there are already 3 conversions planned. Altogether, they will increase the retail space of the already existing facilities by more than 205,000 sqm GLA, according to the listing.

By province, Mazovia dominates the investments. In the next three years, nearly 22% of new retail space will be created in the Mazowieckie Voivodship, over 10% in the Śląskie Voivodship and over 9% in the Dolnośląskie Voivodship. The situation is similar in terms of the number of new retail schemes: 22 will be built in the Mazovian Voivodship, 11 will be added in the Silesian and Greater Poland Voivodships, and nine facilities will be opened in the Łódzkie Voivodship, PRCH also reported.

Poland is currently dominated by investments in very small and small retail facilities (2,000-20,000 sqm GLA); between 2023 and 20205, they will account for 73% of all investments. Another 16% relates to investments in medium-sized facilities (20-40 thousand m2 GLA), and the remaining 11% are investments in large facilities (40-60 thousand m2 GLA). More than 75% of retail space will be opened in the format of retail parks. Nearly 16% of the newly created GLA is related to shopping centres, mixed-use facilities are responsible for about 9%, and the remaining 0.2%, or about 2,000 m2 GLA, is the area and outlet centres, it was reported.

Source: PRCH and ISBnews