The balance between construction costs, return on investment and rental costs, which has developed in Poland in recent years and is the foundation for the functioning of the commercial real estate industry, has been disturbed in recent months. Dynamic cost changes and extended construction time, high interest rates on domestic bonds are just a few selected factors influencing the inevitable increase in rents. The report of BNP Paribas Real Estate Poland also shows that the persistent high demand, dynamic development of e-commerce in logistics, and the trend of shortening supply chains are key elements that allow for optimistic forecasts of the further development of the sector.
The strong market condition is confirmed by continued high gross demand on the tenants’ side, which reached almost 1.5 million sqm in the analysed period. This result is close to the one achieved in Q1 of the previous year. The inertia that we are currently noticing on the market, means that its reaction to what is happening in the economy will be to some extent delayed. On the horizon, there are piling up: obstacles in crediting new projects, the effects of Covid wave in China, or the mounting problems with access to raw materials, especially those imported from Ukraine or Russia
says Tomasz Arent, Head of ndustrial and Logistics Department, BNP Paribas Real Estate Poland.
a whole. Growing online sales and new consumer expectations are becoming a field for the development of new urban warehouses or warehouses that handle goods’ returns.