The Polish retail property sector experienced significant growth in 2024, outperforming much of Europe, according to Savills. Investment transactions in the first three quarters totaled nearly €2.5 billion, a 51% year-on-year increase and 20% above the full-year 2023 total. Approximately 25% of these funds were directed toward retail properties, making Poland a hotspot for global investors. Eastern Europe Outpaces European Averages While Europe’s retail property market grew modestly, with transaction values rising 6% year-on-year to €19 billion, Eastern Europe showed exceptional dynamism. Poland and Hungary led this trend, with Poland focusing on ESG principles and modernizing its retail spaces. Key Transactions and Sector Performance Poland’s retail market accounted for 25% of all commercial real estate investments, surpassing 2023’s total by 43%. Major transactions included: • Magnolia Park (Wrocław) and Silesia City Center (Katowice) acquired by NEPI Rockcastle for nearly €780 million. • Retail parks in Myszków and Włocławek purchased by BIG Poland for over €56 million. • Other notable deals included Galeria Wisła (Płock) and Galeria Szperk (Gdańsk). The robust activity positions 2024 as the retail sector’s best year since 2019, driven by stable economic fundamentals and the growing popularity of retail parks. The Rise of Retail Parks and Omnichannel Strategies Retail parks, particularly in smaller towns, are gaining traction as they cater to local community needs. At the same time, omnichannel strategies integrating physical and online retail are becoming increasingly prominent, aligning with broader European trends. European Context and Modernization Poland’s growth outpaced Europe’s 6% average, with other strong performers including Ireland (+107%), Italy (+83%), and Hungary (+34%). Across Europe, retail parks (28%), shopping malls (26%), and shopping streets (18%) remain the top investment segments. Modernization is key for further growth, with investors focusing on upgrading older properties to enhance value and sustainability. Positive Outlook for 2025 Savills forecasts increased investor activity in 2025, with investment volumes expected to exceed 2024 levels. Poland remains a standout market in the region, offering stability, growth potential, and opportunities for modernization and innovation in the retail property sector.