The investment land market in Poland in 2016

I have prepared a summary of 2016 in the industry – for the commercial property market in Poland it is a time of building a strong position for investment land, and also a reason to celebrate the industry's excellent condition. The unemployment rate is falling, the economy is holding at a stable level, and the capital and financial sector is climbing.

Investors are showing interest in office properties, which translates into a dizzying pace of signing lease and purchase agreements for buildings. New areas for office investment are being considered, mainly in the Tricity and Kraków, but also in Opole, Bydgoszcz, Lublin, Rzeszów and Silesia.

Regional markets are opening up ever more boldly to land-related investment. The boom has also spread to the primary housing market – an extraordinary number of developments came up for sale, and interest in them exceeded developers' boldest expectations.

The leading trend that has appeared on the investment market is land for hotel development. Why this trend? The reason is above all the vigorous growth of the hotel market, which has resulted in enormous interest in this kind of investment.

The stable situation on the Polish investment land market is caused by the intensive expansion of the retail and service sector. The market has entered into surprising rivalry with strong competitors. Investors are targeting mainly large agglomerations where there is a chance to fill a retail gap.

What factors affect the prices of investment land?

It is commonly believed that the price is dictated solely by the area of the land. This is one of the factors determining the amount, but besides it, the location, access to transport routes and the designated use of the land are also important.

Specialists are impressed by the condition of the Polish investment land market and forecast its stability at least through the first quarter of next year.

Kind regards, Marta Kulawik