Everything stable says Retail Research Forum
Retail & leisureschedule 22 March 2018
Aneta Cichla
POLAND Despite numerous changes including legislative, the shopping centre market in Poland remains stable claims a report by PRCH Retail Research Forum.
“2017 was marked by many changes on the commercial real estate market. Data such as currency exchange rates and sales figures show that many of these changes were favourable for many of the different types of shopping centre tenants., The rise in the minimum wage and the tighter labour market have presented employers in the industry with a greater number of challenges, but the market is proving mature enough to adapt, which is shown by last year’s figures,” says Radosław Knap, the managing director of the Polish Council of Shopping Centres. Last year's investment volumes came to EUR 5.16 bln, representing a 12 pct rise y-o-y. Investment in shopping centres accounts for almost 37 pct of this figure (EUR 1.9 bln). The largest transactions included the acquisition of Magnolia Park in Wrocław as well as the sale of four centres by Ikea Centers. “It is worth pointing out that investors paid more attention to the smaller cities last year, such as Sieradz, Kalisz and Inowrocław, where small retail centres offer an opportunity to invest capital with attractive returns and a lot of potential for growth in the medium term. The transactions were mainly until recently for shopping centres, however, investors have started to target new formats such as outlet centres, retail parks or small strip malls,” says Anna Zachara-Widła, of the Polish Council of Shopping Centres. Average turnover per sqm in shopping centres is increasing for all types of stores. In 2017 it came to PLN 865 per sqm, more than 3 pct higher than in 2016 and 5 pct higher than in 2015. Just as for footfall, the highest average turnover was recorded in December (33 pct higher than the average for the whole year), while the lowest – in February (28 pct lower than the average for the whole year). 356,000 sqm of modern retail space was put into operation in Poland in 2017. Over 550,000 sqm of retail space was under construction at the end of last year, of which app. 70 pct is expected to be delivered in 2018. “2018 is expected to be extremely active. We anticipate some spectacular portfolio reshuffles among the largest players and the opening of prestigious retail centres in large cities. Undoubtedly controversial legislative changes such as the so-called ‘mall tax’ and the ban on Sunday trading will leave a mark on the entire industry. Therefore, all market players face big challenges adapting to new regulations and possible structural changes the retail market,” sums up Radosław Knap. The PRCH Retail Research Forum report was prepared by the Polish Council of Shopping Centres together with Knight Frank, Savills, BNP Paribas Real Estate, Metro Properties and GfK.
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