Warsaw - Gray
But Busy
Polish Commercial Real Estate Market Reveals State Of Poland's Economy
Warsaw, Poland - 17 June , 2009 Poland's commercial real estate market shows how the the Polish economy is changing in response to the global economic slowdown with residential and office building all but stopped and shopping center construction continuing.
The prices of homes and flats have dropped. Foreign investors, notably from Spain and Ireland, who fueled a lot of the housing boom, are now holding properties valued well under what they paid. Many of the mortgage debts are higher than the value of the real estate.
Generally there is a significant inventory of unsold residential properties. And banks are not considering making loans for new residential developments.
Likewise there is an oversupply of office space. Companies are expecting to have to reduce their work forces so they are not interested in adding new floor space. And banks are not interested in making loans on office projects.
Banks will, however, make loans for new shopping centers. They are comfortable with the consumer demand for major supermarkets surrounded by discount outlets.
Upscale clothing stores are having difficulties in the current market, so they are not favored tenants in any new project. Consumers are now shopping more for price than prestige.
The building supply outlets are booming. People are focusing on renovating old flats built during the communist era rather than moving into something newer.
Shopping center food courts, fast food outlets and pubs are as busy, if not busier, as ever. And, keeping with the times, some upscale restaurants are having some problems.
On the surface, as you move around the country, everything looks busy. The shopping centers are filled, there are long waiting lines at fast food counters in the shopping center food courts, there are long lines of cars waiting to get into shopping center parking lots and the coffee shops and outdoor cafes are busy.
As one commercial real estate broker put it, “It's all about attitude. We just have to wait three or four years and be happy.”
