This report was prepared by the Cushman & Wakefield Poland Consulting Department to present to readers the condition of the Polish real estate market in the first half of 2008.
Economic information
The credit crisis in the United States has negatively affected the European Union economy, which has also impacted the growth level of the Polish economy. As a result, the estimated GDP growth in Poland over the next two years will decrease by approximately 1-1.5 percentage points compared to 2006-2007. It is estimated that in 2008, the value of foreign direct investment will amount to approximately EUR 12-13 billion. The wage growth rate (year-on-year) was 12.5% in June 2008 and was nearly 4% lower compared to the same period in 2007. Recently, a large scale of direct investments and portfolio transfers from the European Union has caused the zloty to strengthen against the dollar and the euro. Some companies listed on the Warsaw Stock Exchange that want to raise additional capital through the securities market are holding off on their market debut until sentiment improves. This largely applies to companies in the development sector, which has suffered the most during the current bear market.
Industrial real estate market
The beginning of 2008 was extremely dynamic in the warehouse space market. A record volume of lease agreements was recorded as early as the first quarter. Demand in the second quarter was lower than at the beginning of the year, but comparable to the last quarter of 2007. On the supply side, the warehouse space market is stable. New investments are appearing, and most of the projects under construction are already leased, while developers have land resources in attractive locations.
The full content of the report can be viewed at: http://www.industrial.pl/polska_raport_jesien_2008_pl.html