Poland in the European Context: Dynamic Growth in Eastern Europe

The European retail real estate market has shown steady growth. Across Europe, the transaction value for the first three quarters of 2024 amounted to €19 billion, reflecting an average increase of 6% compared to the same period in the previous year. Eastern European markets, particularly Poland and Hungary, are demonstrating growth that exceeds the European average. In Poland, the retail sector is developing with a focus on implementing ESG principles as well as standards for the modernization and expansion of commercial spaces.

Retail Sector: A Key Segment of the Polish Market

In Poland, the retail sector attracted approximately 25% of all commercial real estate investments, with their value already exceeding the total results of 2023 by 43%.

Investors’ activity in the retail market is also evidenced by notable transactions announced in the last quarter of the year, including Magnolia Park in Wrocław and Silesia City Center in Katowice, acquired by NEPI Rockcastle (with a total value of nearly €780 million). Additionally, retail parks in Myszków and Włocławek were purchased by BIG Poland (total value exceeding €56 million), along with other assets such as Galeria Wisła in Płock and Galeria Szperk in Gdańsk.

These figures confirm that Poland's retail sector is heading toward its best performance results since 2019.

"In 2024, the Polish retail market has experienced significant growth, reflected in numerous significant transactions. Strong economic fundamentals and the rising popularity of formats like retail parks are attracting both local and international investors. This allows for an optimistic outlook on the sector's development in 2025," says Paulina Stach, Director of Property & Asset Management Retail at Savills.

The Growing Popularity of Retail Parks and Omnichannel Strategies

Retail parks play a vital role in the development of local markets. These properties, often located in smaller towns, address the needs of local communities by providing convenience and a wide range of services.

At the same time, the importance of omnichannel strategies, which combine brick-and-mortar retail with online shopping, continues to grow. Investors see potential in developing modern spaces that integrate traditional shopping with digital experiences, aligning with broader European trend.

Market Stability in Europe

Compared to other European countries, Poland stands out with its dynamic growth, while the European average was 6%. Other countries with notable results include Ireland (+107%), Italy (+83%), and Hungary (+34%). Across Europe, the most attractive investment segments remain retail parks (28%), shopping centres (26%), and high street retail (18%), with transactions focusing on prestigious locations such as Via Montenapoleone in Milan and Rue Saint-Honoré in Paris.

Modernization and New Challenges

Further growth of the Polish retail market will require modernization and adaptation of assets to consumer needs. Across Europe, investors are increasingly focusing on upgrading older buildings, facilitating their reuse and enhancing their value.

Optimistic Outlook for 2025

Savills experts anticipate even higher investor activity in 2025, with the investment volume expected to be up to around a dozen percent higher than this year’s. Poland remains one of the most promising markets in the region, offering stability and opportunities for dynamic growth.