Review 2020 & Outlook 2021 - Commercial real estate market 2021 - Invest in Wroclaw
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Review 2020
knightfrank.com.pl/en/research
& Outlook 2021
Commercial
real estate market
2021
K N I G H T F R A N K .C O M . P L / E N / R E S E A R C H
Introduction
Despite the ongoing COVID-19 pandemic and its
Table of contents
enormous impact on the global economy, 2020
brought a good result, with market investments
in excess of EUR 5.3 billion. Despite a 30%
decline in transaction volume compared to
the record year of 2019, sentiment towards
the investment market in Poland remains
positive, with the volume of closed transactions
Office Retail Warehouse Hotel Alternative
exceeding the average over the last 10 years.
2020 saw reduced interest in office assets
sector sector sector sector assets
and shopping centres, with investors’ attention
drawn towards the dynamically developing
warehouse sector. The sector has been
witnessing record demand for space for several
years, with a resultant significant increase
in developer activity.
The warehouse sector and the e-commerce
industry are becoming the greatest beneficiaries
of the new market trends - trends substantially
influenced by the changing market situation
4 8 12 16 20
caused by the COVID-19 pandemic. In other
sectors of commercial real estate, the mood
is less optimistic. H2 2020 brought much
weaker results on the demand side in the
office sector. At the same time, the effects of
government restrictions due to the growing
number of COVID-19 cases remain severe for
the retail and hotel sectors. Alternative assets
sectors, including those at an early stage of
development, may also be set to benefit from
changing investor preferences. These include:
the PRS sector (the market of apartments
for rent), the private student accommodation
sector, and the data centre sector – all sectors
which have the chance to attract a growing
number of investors looking for portfolio
PRS sector Data centre sector
diversification.
Research Team
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Office sector Chart 1 / Office supply in major office markets in Poland (sq m)
Warsaw Regional cities Warsaw - forecast Regional cities - forecast
0 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 900 000 1000 000
In 2020 both tenants and developers 2020 saw a significant increase in Despite limited tenant activity, high new
2014
made more cautious decisions. Tenants vacancy rates in most major office supply, a rapidly growing office sublease
took a conservative approach to leasing markets. In addition, space availability is offer, and a consequent increase in the 2015
new space, while developers opted to being boosted by the increasing amount vacancy rate, most ongoing construction
delay the start of construction work for of space available for sublease. is proceeding according to schedule. 2016
some planned developments.
2017
2018
2019
2020
2021
2022
Source: Knight Frank
Office market in Poland
Some of them are looking for savings expected further increase in vacancy owners to be more flexible in the rental
under the new conditions, and some rates and a falling demand for office process, which may in turn bring about
companies are considering changes to space, along with the current changing effective rent decreases in the quarters
n the first half of 2020, the office June 2020), the figures from the second to a further increase in the vacancy rates their work model. As a result, the number and uncertain market situation, may lead ahead.
I sector in Poland saw no clear, half of the year clearly show a slowdown in recorded during the first nine months of of tenants deciding to reduce their current
visible signs of a market slowdown the office sector, particularly in the largest the COVID-19 pandemic. From the end office space via subletting is on the
due to the COVID-19 pandemic. The markets. Warsaw saw the least amount of March to December 2020, the offer of increase. At the end of December 2020,
second half of the year, however, did see of leased space for almost a decade available office space for immediate lease in the largest office markets in Poland, Chart 2 / Available office space (sq m) and vacancy rate (Q4 2020)
negative effects. At the end of 2020, – 602,000 sq m was subject to lease. increased by 380,000 sq m. the sublease offer already included
the total existing office supply in Poland Similarly, in regional cities tenants leased over 200,000 sq m of office space for
exceeded 11.7m sq m, of which half was 582,000 sq m - the smallest figure since Consequently, the vacancy rate in Warsaw immediate lease - almost twice the figure
Available office space Vacancy rate
located in Warsaw, with another 2015. The largest decrease was recorded increased by over 2.4pp. to 9.9%, and by at the end of H1. Disturbing signals are
1.55m sq m and 1.23m sq m in the two in Kraków, where only 60% of the 2019 3.3pp. in the regions to 12.7%. also evident on supply results. Long
largest regional office markets of Kraków transaction volume was leased. That said, The relatively high volume of new office investment processes don’t allow for
583,500
and Wrocław respectively. Over the course despite this decline, the highest tenant supply not fully commercialised has had flexibility in developer reactions to new
of the year, approximately activity in 2020 among regional markets the greatest impact on this vacancy rate market circumstances. As a result, high
16.4%
707,000 sq m of office space was was in Kraków and Wrocław, with nearly growth, particularly in Q3 and Q4. There developer activity in the office sector 15.0%
14.0%
delivered to the Polish market (only half of all 2020’s signed agreements is still 260,000 sq m of office space for is still observable - there are over 13.0%
6,000 sq m less than recorded in 2019), there. lease in the projects delivered to the major 1.6m sq m of office space under
with the third quarter accounting for almost markets in 2020, giving an attendant construction in Poland, only slightly less
9.9%
40% of this volume. The highest pace of It is worth pointing out the changes in the vacancy rate of 37%. than in the record years 2018-2019.
9.5% 9.2%
217,500
183,400
development of the office market in 2020 structure of lease transactions. Whilst new According to developer schedules, the
was observed in Warsaw, Kraków and agreements and pre-let contracts have In reality, the range of office space supply of office space expected to be
94,600
84,300
75,900
Katowice - almost 75% of the total new prevailed in recent years, approximately available for lease is much wider. The delivered in 2021 may reach the highest
54,000
supply introduced to the Polish market 40% of the office space leased in the COVID-19 pandemic, and thus the volume for many years and may exceed
was in these three cities.While the volume largest markets in Poland in the second transition to work in a hybrid system 900,000 sq m. Inevitably, this will likely
of lease transactions in the first half of the half of 2020 came from renegotiations of or solely from home, along with the result in a further significant vacancy rate
year was driven by negotiations begun existing agreements, often being signed deteriorating economic situation, have increase. Despite the changing market Warsaw Kraków Wrocław Łódź Tricity Poznań Katowice
before the pandemic (670,000 sq m was for shorter periods than market standards. undoubtedly prompted some companies conditions, asking rents in the majority
leased in Poland between January and The reduced tempo seen in leasing led to re-evaluate their office space needs. of cities remained stable. However, the
Source: Knight Frank
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Chart 4 / Polish GDP growth (y-o-y)
Investment market in the office sector
8.0%
he global pandemic and 2021 remains a big unknown, although it related to the development of the global 6.0%
T restrictions have led to a redrawing seems likely that the real estate market pandemic - the attendant restrictions and
of the real estate investment in Poland will be of great interest to funds evolving sanitary regimes, along with the 4.0%
map, with particular reference to both the from Europe, China and Singapore. In the return of employees to offices, will have
sources of capital and investor appetites coming quarters, the market situation will a significant impact on the shaping of new
2.0%
for particular segments of commercial be influenced by many factors, primarily trends in the office market.
real estate. The decline in interest in office
0.0%
properties is a direct consequence of
the COVID-19 pandemic and its creation Chart 3 / Investment transaction volume in the office sector
of a climate of uncertainty regarding the -2.0%
changing work environment.
Investment transaction volume (bn EUR) Prime yields (%) -4.0%
In 2020, the volume of office transactions
reached EUR 1.98 billion - 38% of the total -6.0%
value of real estate transactions in Poland. 3.81 4.25%
The sector recorded a 50% decrease -8.0%
in investments compared to 2019, with
Warsaw remaining the office market 2.78 4.50% -10.0%
leader, with the value of transactions
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
2021 f*
2022f*
reaching close to EUR 1.3 billion. The
1.80 5.25% 1.98 4.75%
most important transactions included: the
1.65 5.25%
acquisition of Wola Center by Hines; the 1.31 6.00%
acquisition of Nowogrodzka Square by the
French fund Amundi; and the acquisition of Source: Statistics Poland; *European Commission forecast, January 2021
Generation Park Z by Deka Immobilien.
In the office sector, prime assets are
Economic indicators
currently expected to be valued at yields of 2015 2016 2017 2018 2019 2020
around 4.75%, compared to early 2020’s
corresponding figure of around 4.25% - Source: Knight Frank
4.35%.
2020 is well below the average for the
1 GDP GROWTH European Union, where the decline in 3 BASE INTEREST RATE
TRENDS According to Statistics Poland, Polish
GDP in 2020 was estimated at 7.4%. It is
In February 2021, the Monetary Policy
worth noting here that forecasts of GDP
GDP fell by 2.8% in 2020 compared to an Council, decided to leave interest rates
growth in Poland for 2021 and 2022 are
1 2 3 4 increase of 4.5% in 2019. The COVID-19
pandemic and related restrictions led to
positive. at the level set at the end of May 2020.
Thus, the base rate remained at its lowest
the first decline in GDP since 1991. The historical level of 0.1%. The decisions
Expected growth of available The new reality is prompting The working model in many Due to the growing requirements biggest contributor to this was the fall in 2 UNEMPLOYMENT RATE taken by the Monetary Policy Council
space for lease and falling some companies to re-evaluate companies will increasingly of office building tenants, domestic demand, which reduced GDP are a response to the fight against
demand for office space may their office space needs. Some be based on a combination the cooperation of the office by 3.6pp. The weakest GDP growth rate the economic consequences of the
Despite the COVID-19 pandemic, Poland
result in tenant pressure to employers are considering of different environments, sector and proptech sector was observed in Q2 2020, when a decline pandemic. In addition, the National Bank
has not so far seen the sharp increase in
renegotiate rents. changing their working models - locations, working hours, and can be expected to continue. of 8.4% y-o-y was recorded. Subsequent of Poland forecasts that rates will be kept
unemployment that was foreseen at the
opting to reduce the office space „agile working conditions” to Consequently, more and more quarters have already brought an unchanged at least until early 2022.
outset of the pandemic. Many companies
they currently occupy and sublet increase productivity, employee advanced features in building improvement in performance. have simply decided to stop increasing
the remaining space. engagement and satisfaction. systems, along with their
employment levels, rather than actively
Thus, it is expected that more supporting applications, will aim In Q4 2020, the main driver of the Polish cutting numbers. From June to November
and more companies will at ensuring safety and comfort in economy was industry, itself driven by 2020, the country’s unemployment rate
systematically move towards buildings and leased space. an upturn in global manufacturing. The remained unchanged at 6.1%, rising to
different location strategies decline in GDP recorded in Poland in 6.2% in December.
and a hybrid model of work.
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Retail sector
Chart 5 / Vacancy rates in 8 major agglomerations
H1 2019 H2 2020
8.0%
6.1%
7.0% 6.8%
The COVID-19 pandemic and the The limiting of the activity of shopping Investors have redirected their attention
6.0%
subsequent closing or limiting of the centres has accelerated the digital to smaller retail projects, which coped 5.4% 5.6% 5.4% 4.0%
activities of shopping centres for a total transformation of the retail industry. The better with the consequences of the 5.0% 5.0%
5.9%
of almost 3 months was a litmus test for share of online sales in retail sales in pandemic than traditional shopping 4.0% 4.0% 4.1%
4.2%
the economic condition of both retail selected months of 2020 approached malls. Due to the lower value of acquired 3.6% 3.6%
3.0% 3.3%
schemes and tenants. 11-12% (compared to the 5-6% achieved assets in 2020, investors invested 3.9%
before the pandemic). approximately EUR 700m in the retail 2.0%
sector. 1.1%
1.0%
0.0%
Katowice Kraków Łódź Poznań Gdańsk Szczecin Warsaw Wrocław
Source: Knight Frank
Retail market in Poland
In 2020, developers completed a total of to their lack of common areas). This has it can be found in the acceleration of
237,000 sq m - approximately 80% of the positively impacted both footfall figures e-commerce development. During both
supply delivered in 2019. Small-scale retail and turnover volumes in such projects. lockdowns, many retail chains recorded
parks (5,000-10,000 sq m) accounted In December 2020, only 265,000 sq m of dynamic growth in online orders. Online
for half of this space. The popularity of retail space was identified as being under shopping has gained in popularity even in
t was an unprecedented year in by week after the lifting of each lockdown, The consequences of these decisions such retail schemes (i.e. without common construction - another indicator confirming industries that were previously dominated
I almost every aspect for the Polish many centres had still not returned to are not yet fully reflected in the scale of areas, with separate entrances from the decreasing developer activity in the retail by brick-and-mortar trade (e.g. the food
retail sector. Over the nine months 2019’s turnover and footfall volumes by increases in vacancy rates. At the end of parking level to individual stores) among sector over recent years. The completion industry). For many brands, it was the
of 2020 which followed March, when the end of the year. It is estimated that August 2020, the vacancy rate for the 8 customers has been observed over the of the vast majority of these projects is pandemic and lockdowns that accelerated
the COVID-19 pandemic first hit Poland, in 2020, footfall in shopping centres largest agglomerations was estimated last 2-3 years and, in the time of the scheduled for 2021. the implementation of online channels into
shopping centres faced two periods of decreased by some 30%, and turnover fell at 4.8% (an increase by 0.7 pp. over 9 pandemic, their position has strengthened their sales strategies.
severe restrictions – in March/April and by some 25% compared to 2019. months). It can be expected that the (mostly due to the feeling among buyers When seeking a positive impact of the
November. The majority of shops were changes currently being experienced by that they offer greater sanitary safety due COVID-19 pandemic on the retail sector,
forced to close each time, with the retail All this has severely damaged the the retail sector may lead to a noticeable
units which were allowed to remain open condition of many tenants. Some of them increase in the vacancy rate in the coming
(including grocery stores, drugstores, also failed to renegotiate their lease quarters.
pharmacies, stores with toys and articles agreements, and, as a result, were forced
for children) facing limitations in the to leave shopping centres altogether. Despite the prevailing market uncertainty, Chart 6 / Annual supply (sq m) and market share of small retail parks (2015-2020)
number of customers allowed to enter Decreases in revenues in 2020 also the level of retail developer activity in
the shop at any one time. The operational accelerated the decisions of several Poland has changed little. That said, it
Annual retail supply (without small retail parks) Small retail parks
restrictions were also applied to cinemas international brands (including Camaieu, should be emphasized that even before
Market share of small retail parks
and fitness clubs, while food and drink Salamander, Sportisimo and Stefanel) to the pandemic it was not high, and the
outlets were limited to the provision of cease their activity in the Polish market. scale of the new annual supply was 0 100 000 200 000 300 000 400 000 500 000 600 000 700 000
take-away services. The impact of this For the vast majority of potential tenants, characterized by a downward trend. Apart 2015 4%
ban was all the more painful as many the COVID-19 pandemic has been a period from a few projects which postponed their
shopping centres in recent years have of suspended expansion processes. This opening dates, there has been hardly any 2016 6%
attempted to increase the share of tenants resulted in the completion of not fully suspension of work on projects already
2017 9%
from the entertainment and food sectors leased retail schemes. Such an example under construction. Importantly, however,
in response to the changing purchasing can be found in Szczecin, which recorded 2020 saw the closing of shopping 2018 27%
trends of consumers. the highest increase in vacancy rate over centres with a total area of approximately
2020 due to the opening of the Rondo 200,000 sq m. This included nine centres 2019 35%
As a result of these actions, turnover Hakena Park, which was approx. 80% representing 1 generation shopping
st
2020 30%
and footfall figures dropped significantly. leased on opening. centres (Auchan and Tesco), as well as the
Although the indicators increased week Sukcesja shopping centre in Łódź. 0% 5% 10% 15% 20% 25% 30% 35% 40%
Source: Knight Frank
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Investment market in the retail sector TRENDS
1 2 3 4 5
n the 12 months of 2020,
I the appetites of investors Chart 7 / Annual investment volume and prime yields in retail sector An increase in the activity A systematic increase in A slowdown in the An expected increase in A decline in rents,
of developers delivering the share of e-commerce pace of the expansion vacancy rates, especially especially in shopping
and foreign funds for Polish
commercial properties remained high.
convenience shopping in retail sales. A sharp of both domestic and in traditional shopping centres with a weaker
Investment volume (EUR bn) Prime Yield
The preference for specific sectors has, centres and small retail increase in the number international brands, centres as a result of the position on the local
however, changed. The consequences 2.18 6.00% parks - as a response to of brands which are primarily due to the limited pace of expansion market. In prime
2.53 5.00%
of the restrictions introduced in Poland 1.94 5.50% both consumer demand developing omnichannel reduced footfall in of new brands and the properties rates
for shopping malls and uncertainty over 1.77 5.25% and investor interest. sales strategies. shopping centres and, in vacating of shopping should remain stable,
the further condition of such products 1.93 4.50% the case of luxury brands, centres by tenants who although owners of all
resulted in a significant decline in investor due to the limited supply have lost financial liquidity properties may need to
interest in large-scale shopping centres, of new, high-standard as a result of bans or be more flexible when
which had been popular pre-pandemic.
shopping malls. limitations on trade during renegotiating existing
As a result, the volume of transactions
the pandemic. leases or negotiating new
in the retail sector in 2020 did not
0.65 5.50% leases.
exceed EUR 700m and accounted for
only about 30% of the recent 5-year
average. Investors who, despite the
pandemic, remained interested in the
retail sector, focused their attention on
smaller facilities (small retail parks and 2015 2016 2017 2018 2019 2020
convenience centres), which, as shown Source: Knight Frank
by footfall and turnover data, coped better
with the consequences of the pandemic.
Economic indicators
An example of such transactions was the Chart 8 / Share of online sales in retail sales (total and in selected
acquisition of a portfolio of 12 properties retail categories)
(including Hop Stop in Siedlce, Pasaż
Total
Chełmiński in Chełmno and Park Handlowy Food, beverages and tobacco products arch 2020 was the first month in Unfortunately, the following months Over the past several years, online sales
Piast in Piastów) by the British fund LCP Pharmaceuticals, cosmetics, orthopaedic equipment M which limitations were imposed brought further declines in sales have been systematically gaining in
Properties. In 2020, transactions involving Textiles, clothing, footwear on Polish society and the Polish dynamics: -2.3% in October and -5.3% popularity among Poles, although their
Furniture, radio, TV and household appliances
the stand-alone stores occupied by Tesco economy. The restrictions introduced at in November (the result of the re- share of retail sales did not exceed 5-6%.
Newspapers, books, other sale in specialized stores
in the past years had a significant share in the turn of Q1 and Q2 2020, mainly those introduction of restrictions on shopping The COVID-19 pandemic and restrictions
the transaction volume. Their buyers were, related to the closure of the majority of mall activity between November 7 and connected with lockdowns made online
LOCKDOWN 1 LOCKDOWN 2
among others, Echo Investment 14.03-03.05 7.11-28.11 stores in shopping centres, a ban on the 28). Even in December, which usually shopping even more popular. Between
(3 schemes in Poznań, Łódź and Kraków), 70 organisation of events, and the suspension sees annual increases in retail sales April and November 2020, the share
Castorama (Ruda Śląska, Tychy, Rzeszów) of service activities, affected the Polish attributable to the Christmas season, the of on-line sales in retail sales reached
and Karuzela Holding (Puławy). 60 economy to an unprecedented degree - sales dynamics were negative (-0.8%). record-breaking levels for Poland -
one not experienced even during the crisis Particularly high drops in sales between approaching 12%. Between lockdowns, the
50
The changing attitude of investors to the of 2008/2009. January and December were recorded in share of online purchases declined, whilst
shopping centre sector, along with the clothing and footwear (-17.3% y-o-y) and remaining above pre-pandemic levels,
40
limited interest of banks in financing the Government-imposed travel and daily in the categories of fuel (-16.6% y-o-y) auguring well for the future.
sector, had a significant impact on the movement restrictions, bolstered by the and vehicles and parts (-13.2% y-o-y).
30
level of yields, which recorded a correction spectre of rising unemployment and wage The negative dynamics of retail sales
in level compared to 2019. Knight Frank 20 cuts, negatively impacted consumer were slightly mitigated by an increase in
experts estimate that if any prime asset sentiment and demand for most consumer sales of food and beverages (2.8% y-o-y,
was sold in 2020, prime yield would 10 goods. For four consecutive months which resulted from making “stocking
approach approx. 5.50%, i.e. some 1% (March - June 2020) retail sales dynamics up” purchases in light of an uncertain
higher than at the end of 2019. 0% remained negative. A slight rebound took future) and furniture, electronics and
I 2020
II 2020
III 2020
IV 2020
V 2020
VI 2020
VII 2020
VIII 2020
IX 2020
X 2020
XI 2020
XII 2020
place only in July and levels remained household appliances (by 5.4%, resulting
similar until September. from increased demand for electronics in
connection with remote work and learning).
Source: Statistics Poland
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Warehouse sector Map 1 / Warehouse stock in concentration areas in Poland (Q4 2020)
TRICITY
S6
760,000 sq m
The dynamic growth of the warehouse The constant growth in tenant interest Due to dynamic growth of the S7
sector in Poland is determined by in modern warehouse space is resulting e-commerce sector in 2020, the
S6 S11
A1
demand hitting new records year by in vigorous developer activity, in new warehouse sector has become a major S16
year. investments in BTS formats, as well as beneficiary of current market changes. ZACHODNIOPOMORSKIE
on a speculative basis. 806,000 sq m
S10
S5 S61
S3
BYDGOSZCZ
WIELKOP OLSKA
S19
2.1m sq m S8
A2
WA R SAW
4.9m sq m
S3 A2
A1
A2
S11
CENTRAL POLAND
3.1m sq m
S8
ZIELONA GÓRA S5 S17
S7
A18
Warehouse market in Poland
LUBLIN
S12
A4
LOWER SILESIA
2.7m sq m
A8 S19
A1
S11
S3 S74
S8
A4
UPPER SILESIA S17
3.6m sq m
he warehouse sector is the only where nearly 5m sq m of warehouse space (58,500 sq m), Panattoni Park Ruda S7
RZESZÓW
T commercial real estate sector to is situated (24% of Poland’s total stock). Śląska II (56,000 sq m), Hillwood Oleśnica A1
A4
S1
remain immune to the effects of Despite the uncertain market situation (53,000 sq m) and 7R Park Gdańsk II KRAKÓW
the COVID-19 pandemic and the socio- caused by the COVID-19 pandemic, (51,800 sq m). 630,000 sq m S19
economic consequences of the lockdown. developer activity stayed strong. The
2020 saw a continuation of the dynamic vast majority of launched investments, At the end of Q4 2020, nearly 2m sq m Existing highways and expressways
development of the warehouse market in regardless of interrupted supply was identified as being at the construction Major routes under construction
Planned road investments
Poland, with total stock exceeding chains and difficulties with labour force stage. This means that developer activity,
20.8m sq m by the end of December availability, have proceeded without delay after a noticeable dip in the middle of
Source: GDDKiA, Knight Frank
2020, and growing demand reaching yet or disruption. 2020, increased and, by the end of
another record-breaking annual volume the year, exceeded the volume under
of 5.2m sq m of leased space. From the beginning of the year, new supply construction at the end of 2019. Following
of warehouse space grew by over several quarters with a high share of
Poland’s warehouse market shows 2m sq m, a 10% increase compared to the speculative investments, the market is 73,000 sq m); Euro-net in Prologis Park benefits of the changes are evidenced tenant activity registered in Q4, resulted in
no let-up in attracting tenants from corresponding 2019 period. The largest witnessing a noticeable shift in developer Janki (73,400 sq m); 7R BTS for Żabka in by the volume of finalised transactions in a decrease in the level of available space
logistics companies, distribution centres, volume of new supply was delivered in focus towards projects secured by Radzymin (67,500 sq m); Panattoni BTS for 2020. - at the end of December 2020 it was
manufacturing enterprises, retail chains Q3 2020 (some 670,000 sq m). The pre-lease agreements, or built using the 4F in Czeladź (67,000 sq m). estimated at 6.6%, with some 1.37m sq m
and the e-commerce sector. The highest increases in warehouse stock, build-to-suit format. Over the twelve months of 2020, tenants of immediately available space.
intensifying demand from the e-commerce where a combined 68% of total new The government’s imposition of were mainly attracted to the largest
industry observed in the last half of the supply was delivered, were observed in Tenant activity in the warehouse sector is restrictions, particularly in the retail warehouse hubs: Warsaw area (21%), The asking rents in all the major industrial
year is a major factor in the dynamic 3 developed warehouse hubs: namely, showing continuous growth. The volume of sector in spring, has changed consumer Upper Silesia (20% of Poland’s total hubs in Poland remained at a stable level
development of SBUs (small business Warsaw area (zone I and II), Upper Silesia leased space in 2020 reached a record- purchasing behaviour and stimulated take-up), and Central Poland (18% share of of EUR 2.50-5.00/sq m/month, with
units) and last mile logistics facilities and Lower Silesia. The largest large-scale breaking 5.2m sq m, a figure not previously increased interest in online sales leased space). the highest rates being found within the
located in the vicinities of Poland’s large schemes to receive permits for use from witnessed on the Polish warehouse channels. The significant rapid growth in administrative borders of Warsaw.
cities. January to December 2020 were, among market. The largest finalised deals in 2020 the e-commerce sector since the outbreak The limited volume of new supply delivered
others: A2 Warsaw Park (103,700 sq m), were, among others: two agreements of the COVID-19 pandemic has positively to the market between September and
The highest concentration of warehousing Hillwood Wrocław Wschód II signed by Amazon (BTS in Świebodzin impacted the warehouse sector – the December 2020, along with the high
remains in Warsaw and its surroundings, (63,900 sq m), P3 Mszczonów 200,400 sq m and Hillwood Łódź Górna
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Chart 10 / PMI in Poland
Investment market in the warehouse sector
60
he best historical results achieved Savills Investment Management, and two impact on yields. Already evident is their
T on the investment market in the Amazon projects in Poznań and Wrocław adjustment in each sector, but their growth 50
industrial sector amounted to purchased by Blackbrook and Hines. in the industrial sector is minor.
EUR 2.6 billion, which was largely the Prime big box properties are valued at
reaction of investors to the development The current global economic situation 5.50%, while BTS assets with long leases 40
of the e-commerce market, even stronger caused by the pandemic has a significant are valued at 5.00%.
in the era of the COVID-19 pandemic and
changing market sentiments. Investor
30
activity in 2020 clearly reflects the
decisive advantage of the warehouse Chart 9 / Structure of investments transactions in Poland according
sector in the commercial segment,
to market sectors share
20
because of as much as 50% of capital
60%
invested in Poland constitued acquisitions
of assets in the warehouse sector, and 55%
10
depending on further restrictions resulting 50% 50% WAREHOUSE
from the pandemic the sector may remain 45%
the leader on the investment market. Last
40% 0
year, the most sought-after assets were 38% OFFICE
warehouse portfolios such as Goodman’s 35%
I 2018
II 2018
III 2018
IV 2018
V 2018
VI 2018
VII 2018
VIII 2018
IX 2018
X 2018
XI 2018
XII 2018
I 2019
II 2019
III 2019
IV 2019
V 2019
VI 2019
VII 2019
VIII 2019
IX 2019
X 2019
XI 2019
XII 2019
I 2020
II 2020
III 2020
IV 2020
V 2020
VI 2020
VII 2020
VIII 2020
IX 2020
X 2020
XI 2020
XII 2020
I 2021
portfolio acquired by GLP, Hillwood’s 30%
portfolio acquired by Rosewood, as well 25%
as BTS projects with long term leases
20%
such as Leroy Merlin in Piątek acquired by
Source: Knight Frank
15%
12% RETAIL
10%
5% 0%
HOTEL
0%
Economic indicators
2015 2016 2017 2018 2019 2020 RESIDENTIAL
0%
Source: Knight Frank
rolling out of the vaccination program 11.2% y-o-y. This represents the best
1 PMI across Europe, and the expected result for a decade. The figure for Q4
TRENDS economic recovery in the second half of 2020 also points to the healthy condition
The beginning of 2021 brought an
2021, contributed to optimistic business of industry, since industrial output rose
improvement in economic conditions and
1 2 3 4
sentiment among Poles and Polish by 4.7%. The main source of industrial
a more positive sentiment in the Polish
manufacturers. The latest published production growth in December lies in
industrial sector. In January, the PMI index
PMI data for the Eurozone indicate good sectors with a significant share of export
in Poland rose to 51.9 points, signaling
The growing importance of online High demand will lead to ongoing The accelerated development The development of the conditions for Polish export growth and sales in their revenues – evidence of
the most significant improvement in
sales channels will cause further strong developer activity. This will of the e-commerce sector warehouse market will result industrial production in early 2021. a gradual recovery in global trade.
conditions in industry since July 2020
high tenant interest in modern translate into further growth of brought about by the COVID-19 in changes in the standards of
when the Polish economy was making
warehouse space, especially warehouse stock in the coming pandemic will facilitate further, built space. Trends such as the
up for the losses caused by the spring INDUSTRIAL
in companies representing the quarters. dynamic growth in last mile automatization of warehouse 2 PRODUCTION
closures – that month saw the PMI reach
e-commerce sector and related logistics developments and schemes, growing environmental
52.8 points. Growth in industrial orders
industries such as logistics. Small Business Unit schemes awareness, and sustainable
was attributable to exports, which grew at According to Statistics Poland data,
dedicated to urban warehousing. development, along with an
a three-year high. This was accompanied industrial production in Poland in
emphasis on friendly working
by an increase in the number of new December 2020 increased at a pace
environments are all becoming
workplaces in industry. Furthermore, the exceeding market expectations – by
more visible.
14 15R E V I E W 2 0 2 0 & O U T LO O K 2 0 2 1 . C O M M E R C I A L R E A L E S TAT E M A R K E T K N I G H T F R A N K .C O M . P L / E N / R E S E A R C H
Hotel sector
Chart 11 / Hotel stock in Poland by hotel category Chart 12 / Average hotel occupancy rate in Poland
(2020) (%)
Number of hotels * Hotel category 100
1* 2* 3* 4* 5* 90
80
188
84
70
As a result of the COVID-19 pandemic Market uncertainty caused delays in the Limited travel possibilities resulting from
and its negative impact on the tourist commencement of construction works the government restrictions, resulted 466 60
market, sharp decreases in occupancy on new hotels, as well as the suspension in a much reduced number of tourists
50
rates in hotels were observed in Poland. by investors of some construction - the most common hotel guests. This 683
projects already in progress. This was contributed to the permanent closure of 40
due, in part, to the difficulty in securing some facilities. 30
financing for such projects from banks.
20
10
0%
2016
2017
2018
2019
I 2020
II 2020
III 2020
IV 2020
V 2020
VI 2020
VII 2020
VIII 2020
IX 2020
X 2020
XI 2020
1 550
Source: Knight Frank Source: Knight Frank on the basis of Statistics Poland data
It is worth noting that in recent years the their hotel facilities permanently due in Legnica, planned for March 2020, took
occupancy rate in Poland has been stable, to, among other things, problems with place in June, and the opening of the
Hotel market in Poland
and between 2016 and 2019 it averaged financial liquidity. The group of hotel Nosalowy Park in Zakopane took place in
52.3%. In 2020 in many regional Polish facilities closing their doors in 2020 July, although it was also initially planned
cities single-digit occupancy rates were includes both the 5-star Sofitel Wrocław for March. The openings of 4-star hotels
recorded. Such low levels were heavily Old Town and the Blow Up Hall in Poznań, such as the Courtyard & Moxy Szczecin
influenced by the significantly limited as well as the 3-star Arbiter hotel in Elbląg, City complex with 255 rooms, and the Nyx
n recent years, the hotel market in international flights and rail connections; hotels operating for tourist purposes was number of tourists using hotel facilities. which succumbed to bankruptcy in Q3 Hotel in Warsaw, with 331 rooms, were
I Poland has undergone dynamic the limiting of the operation of hotel reintroduced, resulting in a continuation According to Statistics Poland data, from 2020. At the end of 2020, 42 hotels initially planned for Q3 2020 but have
development, resulting in both catering and entertainment areas; and of the significant slowdown in the hotel January to November 2020, there were were at the construction stage, and were been put back to 2021 - the Courtyard &
an increasing number of offered hotels finally a temporary ban on conducting hotel market, along with another sharp decrease only 10,765,218 guest stays, compared to open under chain brands after the Moxy Szczecin City complex opening is
and hotel rooms. The growing interest in operations, other than for the provision in occupancy rates. to 21,827,687 guest stays for the implementation of investor plans. This will now planned for Q2-Q3 2021 - the Nyx
Poland as an attractive country for tourists of accommodation to practicing medical corresponding 2019 period. This can be result in an expansion in the market offer Hotel for Q1 2021. The 3-star Hampton by
has attracted more and more foreign professionals, or people quarantined or 2020 saw the growth rate in the hotel compared to an average annual number to the tune of approximately 6,500 new Hilton with 105 rooms, located in Olsztyn,
visitors, ensuring increasing occupancy isolating. The reopening of hotel facilities sector significantly decrease as a result of hotel guest stays for 2016-2019 of 21.5 hotel rooms. By way of comparison, at the is also waiting to open its doors to tourists.
rates for hotel rooms. As a result, 2018 and from 4th May under a strict sanitary regime of a number of effects of the COVID-19 million. end of 2019 there were 46 chain hotels
2019 saw record numbers of hotel facilities brought a temporary improvement in the pandemic. At the end of the year, there under construction.
commissioned for use. 2020, however, market situation. However, in the autumn were 2,971 hotels in Poland (a 0.68% Over the last few months, the profile of
saw a number of negative influences months, another sharp drops in occupancy increase y-o-y – against an average hotel guests in Poland has changed. The Moreover, due to the pandemic and the
from the COVID-19 pandemic and the rates on the hotel market were observed. 2017-2019 annual growth rate of 3.5%). majority of them were domestic visitors ongoing difficult market situation, 2020
hotel sector has become one of the most As a result of the sudden increase in The number of hotel rooms increased - a consequence of the limited travel saw investors deciding to suspend 13
heavily affected by the lockdown and the COVID-19 infections, the activities of to 147,836 units (a 2.1% increase y-o-y possibilities available to them. In previous projects already at the construction stage,
resulting freezing of the economy. entertainment areas closely linked to the – against an average 2017-2019 annual years, foreign visitors constituted an including hotels such as the 4-star Puro
hotel business, such as swimming pools, growth rate of 5%). average of some 26% of all hotel guests and Qubus (both in Katowice, with 246 and
Since 14th March 2020, successive gyms, and aqua parks, have been limited. while, according to Statistics Poland data, 97 rooms, respectively), Puro’s second
administrative decisions aimed at stopping The operating results of hotels was also The significant market slowdown is also from January to November 2020 this 4-star venture in Warsaw (330 rooms), and
the spread of the COVID-19 pandemic negatively affected by a negligible amount reflected in the hotel room occupancy value dropped to 14%, reaching record the 3-star Holiday Inn Express in Wrocław
have had a significant impact on the Polish of demand from the meetings and events rate, which in 2020, according to Statistics low results in May and June (6% and 8%, (142 rooms).
tourism market. The key factors were: (MICE) sector, which traditionally peaks Poland data until November, averaged respectively).
the closing of borders to non-residents; in the autumn months. Furthermore, 29.6%. A record low of only 7.2% for the Additionally, the ongoing pandemic has
a sharp reduction in the number of from 7th November 2020, the ban on Polish hotel market was reached in April. Given the unfavourable market conditions, also contributed to delays in new hotels in
some hotel owners decided to close Poland. The opening of the Admirał Hotel
16 17R E V I E W 2 0 2 0 & O U T LO O K 2 0 2 1 . C O M M E R C I A L R E A L E S TAT E M A R K E T K N I G H T F R A N K .C O M . P L / E N / R E S E A R C H
Chart 13 / A monthly number of hotel guests in Poland (2019 vs. 2020)
Investment market in the hotel sector
Number of hotel guests (2020) Number of hotel guests (2019)
he hotel market is, along with pandemic, there was little interest in hotel 6 Eastern European countries, enabled 0 500 000 1000 000 1500 000 2000 000 2500 000 3000 000
T the retail sector, one of the most transactions observable on the market. AccorInvest to expand its real estate
November
highly affected by the COVID-19 Consequently, Knight Frank identified one portfolio to 135,000 rooms, confirming its
pandemic. Consequently, in 2020, hotel transaction in 2020. In March 2020, position as the leading hotel owner and
a limited number of hotel transactions AccorInvest acquired 98.6% of Orbis S.A. operator in Europe. AccorInvest is currently October
were recorded. However, as with the retail shares by way of a public tender offer. This both the owner and operator of hotels
sector, the hotel market is expected to transaction was the last stage of Orbis’ located in 26 countries in Europe, Latin September
increase yields by 100 bps. As a result, transformation after Accor took over the America and Asia.
it is foreseen that the best assets in hotel and franchise business for EUR
August
Warsaw will be valued by investors 286 million in Q3 2019. The acquisition of
at 6%. Due to the ongoing COVID-19 Orbis, owner and operator of 73 hotels in
July
June
May
April
TRENDS March
February
1 2 3 4 January
In 2020, there was a significant There were sharp declines The slowdown on the hotel Improvement in the situation Source: Statistics Poland
slowdown in the expansion of in both the number of hotel market is expected to continue on the hotel market will largely
activity of investors on the Polish guests and the hotel room until at least the end of H1 depend not only on an increase
Economic indicators
hotel market due to the sector’s occupancy rate, resulting in the 2021. However, an increase in the number of domestic
situation caused by the ongoing poor operating performance of in the number of tourists and and foreign tourists visiting the
COVID-19 pandemic. It can hotels in 2020. Standard prices the level of occupancy rates in facilities, but also on the return
be expected that developers for accommodation in many hotel facilities during the holiday of the regular organisation of
will remain less active in 2021. facilities, especially in chain season is expected, as was the events in the MICE sector (fairs,
hotels, have been discounted case in 2020. In addition, the n almost every month of 2020, the average annual number of foreign tourists 88.5 million - of which 21.2 million were
Moreover, the schedules of conferences, congresses). This
in order to encourage tourists ongoing COVID-19 vaccination is an important element of the
I negative influence of the ongoing visiting hotels in 2016-2019 in Poland was tourists. Due to the collapse of the tourism
planned projects may continue
pandemic were noticeable, approximately 5.6 million. It is worth noting market in 2020, however, a significant
to change due to the prevailing to use hotel services. The care program will contribute to operation of hotels, especially city
inevitably connected with the effects that the number of foreign tourists visiting decline in this values is expected, bringing
market uncertainty. In turn, it is for sanitary safety has become a reduction in travel concerns, ones.
of restrictions imposed by Polish and Polish hotels from January to November a slowdown in the previously upward trend.
likely that the commencement an important element of hotel which should positively impact
European governments. The temporary 2020 was only 31% of the total number of In addition, according to Statistics Poland
of construction works on some operations, and simultaneously the number of hotels’ visitors closure of airports and borders introduced foreign hotel guests in the corresponding data, in Q3 2020, the number of crossings
hotels may be postponed. a measure of high-quality service and the operating performance in March and April 2020, which drastically period of 2019. of the Polish border decreased by 36.7%
for hotel guests. of hotel facilities in second half reduced the number of foreign journeys, compared to Q3 2019. In the same period,
of 2021. had a major impact on tourist traffic. For several years, Poland has seen there was also a significant decrease in
an increase in the number of visits by the value of goods and services purchased
Further restrictions in travel options foreigners – testimony to the growing by foreigners in Poland (down 46.6% on
resulted in a significant decrease in the interest in Poland as a tourist destination. the third quarter of 2019).
number of foreign tourists visiting Polish According to Statistics Poland data, 2016
hotels. From January to November 2020, saw 80.5 million non-residents (including
some 1.7 million foreign guests used 17.5 million tourists) come to Poland, while
the services of hotel facilities, while the in 2019 the figure had already reached
18 19R E V I E W 2 0 2 0 & O U T LO O K 2 0 2 1 . C O M M E R C I A L R E A L E S TAT E M A R K E T K N I G H T F R A N K .C O M . P L / E N / R E S E A R C H
Alternative assets market
POTENTIAL OF POLAND FOR DEVELOPMENT OF PRS SECTOR
PRS sector The development potential for the PRS
sector in Poland can be found, among
other things, in the changing ownership
structure on the housing market. In
2019, 30.2% of the EU population rented
effects in terms of higher salaries. This
means, as confirmed by Statistics Poland
data, that levels of disposable income
are growing. This situation allows people
to sufficiently cover their basic needs
shows that the average monthly rent for
a flat and the average monthly mortgage
repayments are currently comparable
financial burdens on household budgets.
As a result, the decision to buy or rent is
apartments, while the remaining 69.8% and, as a result, more attention can be increasingly not made solely on the basis
were owners. In Poland, these proportions put on the improvement of the quality of economic factors, but in accordance
are even more pronounced - only 15.8% of life. This allows for the improvement with individual consumer preferences.
of the population are tenants, while of housing conditions, in such ways as
PRS market in Poland
84.2% are owners of apartments and upgrading apartments for larger or better
houses. At the same time, however, located versions. The implementation
it should be emphasized that the of these plans is made possible by the
ownership trend is weakening. Eurostat purchase of an apartment for living or
data shows an increase in the number rental. National Bank of Poland data
!
he PRS market is a relatively new of people renting flats in the EU – a trend
T sector on the Polish real estate observable since 2010, and one which
market. As a result, the resources PRS (private rented sector): may indicate systematic growth in the
for such facilities in Poland are limited, openness of society to renting. Despite
although they have been systematically • in Poland operating in line with the British BTR (Build-to-Rent) model the large share of owner-occupied
Chart 14 / Ownership structure of the Polish residential market
growing in recent years. Still in its initial • residential investments designed and built for rent housing in Poland, the market has been
stages of development, the flats built • offering tenants apartments in the form of subscriptions to a service experiencing the problem of housing Ownership Lease
for rent sector in Poland is gradually • apartments in the projects have a single owner and are managed on shortages for years. In 2015, the deficit
defining itself - the starting point was the their behalf by specialized entities was estimated at approximately 1.5 million
Switzerland 41.6 58.4
terminology developed in Great Britain, in • often offering additional services, amenities and common areas for units. Additionally, the quality of housing
particular the BTR (Build-to-Rent) formula. residents, such as; gyms, laundries, bicycle storage, 24/7 monitoring is a problem for the Polish residential Germany 51.1 48.9
The PRS sector in Poland is concentrated and reception desks market. The number of rooms per capita
primarily in the largest urban centres in Poland is only 1.1 - the lowest such value Austria 52.2 44.8
where, at the end of 2020, 15 entities among European countries. Moreover, Denmark 60.8 39.2
were operating or had secured land for some 37% of the Polish population live
the construction of such facilities. The in overcrowded households (the EU27 Sweden 63.5 36.4
largest operators present or entering average is 17%). Only four countries
France 64.1 35.9
the Polish market are: TAG Immobilien, note a higher index than in Poland;
Resi4Rent, Heimstaden, Golub GetHouse, Romania, Latvia, Bulgaria and Croatia. EU average 69.8 30.2
Investment market
Catella, Aurec Capital, Fundusz Mieszkań The development of the PRS market in
Finland 71.1 28.9
na Wynajem and Zeitgeist Asset Poland may be positively influenced by
in the PRS sector
Management. Currently, there are almost demographic changes, especially with the Belgium 71.3 28.7
30 housing investments in Poland in the presence of the generations Y and Z on
Portugal 73.9 26.1
PRS formula, offering a total of over 4,500 the market, along with a transformation in
apartments for rent, owned by institutional lifestyles visible across all generations. For Spain 76.2 23.8
entities. Almost half of them (over 2,100) nterest in assets from the land for investments in the PRS sector. It several years, there has been increased
are in Warsaw, but regional cities are also I institutional rental sector in is worth noting that in Poland in 2019- interest in, among other things; the
Czech Republic 78.6 21.4
attracting investor attention. Moreover, Poland has been growing for 2020, EUR 230 million was invested in the sharing economy, subscription models, Norway 80.3 19.7
around 3,700 apartments are already at several years, but recent quarters have housing sector, while in Europe in 2020 and an increased flexibility and mobility
the construction phase, most of which brought an increase in activity. This was alone, it was EUR 62.9 bn. The increasing in the population. Additionally, there is
Poland 84.2 15.8
are scheduled for completion in 2021 partly due to the negative impact of the number of foreign investors interested an observable, growing reluctance to Croatia 89.7 10.3
and 2022. Over 50% of this number are COVID-19 pandemic on the commercial in building apartments in Poland in the incur long-term obligations - particularly
located in Warsaw. Among the regional market sectors (especially retail and PRS formula serves as confirmation of financial ones. Added to this, there is Slovakia 90.9 9.1
cities, the leader is Wrocław, with almost hotels). New companies appeared on the the dynamic activity and impetus of this systematic growth in the number of foreign Romania 95.8 4.2
600 units under construction. Significantly, market, including Heimstaden, a European sector. Furthermore, attractive rates of students studying at Polish universities -
investors have further plots of land rental real estate operator, who began return are drawing entities experienced students who, due to a deficit in dormitory 0% 100%
secured for such investments, on which Polish operations with the acquisition of on Western European markets, where places, decide to rent apartments. It is
they plan to complete some 15,000 new two projects in Warsaw (640 apartments the PRS sector is significantly more worth noting here that the education level
apartments for rent by the end of 2025. in total). Entities already present on the developed. of Poles is increasing, with knock-on Source: Eurostat
Polish market in 2020 secured further
20 21R E V I E W 2 0 2 0 & O U T LO O K 2 0 2 1 . C O M M E R C I A L R E A L E S TAT E M A R K E T K N I G H T F R A N K .C O M . P L / E N / R E S E A R C H
Alternative assets market
Data centre
Warsaw has attracted investments from • Microsoft - in 2022 the company Apart from the above ventures, the
global companies in recent quarters. plans to partially launch the Microsoft Warsaw market hosts; Atman (owner of
In the second half of 2020, Google, in Azure region (infrastructure, training approx. 20,000 sq m of modern data
cooperation with the Chmura Krajowa, and cloud services for enterprises centres in Warsaw, making it the largest
sector
launched the Warsaw region Google Cloud and the public sector) – an data centre operator in Poland and the
(an investment estimated at approximately investment worth approx. USD 1bn, CEE), Orange (a new data centre with an
USD 2bn). In the coming years Poland will • Vantage Data Centers - in the area of 1,600 sq m), and Equinix. Outside
see investments of: Młociny area in Warsaw, the launch Warsaw, Beyond.pl is expanding its
of two data centres (one of them - in campus in Poznań.
2021) is planned.
Data centre market in Poland POTENTIAL OF POLAND FOR DEVELOPMENT OF DATA CENTRE SECTOR
• favourable geographical location and EU membership
• well-developed road infrastructure and access to public transport
ith the spread of the Internet maintenance costs, and EU membership facilities have a net area of between 200 • relatively low electricity costs (approx. 15% lower than the EU average, and approx. 40% lower than Germany, the most expensive EU
w across the world has come an ensure the prospects for the development and 500 sq m. country)
ever-growing volume of data of this sector in Poland are good. This was • high number of qualified IT specialists - almost 80,000 students study IT in Poland every year, with some 14,000 graduates joining the
produced by both institutions and private further helped by the EU’s 2019 adoption Warsaw remains the largest market labour market annually
users. In recent years, this systematic of laws facilitating the free flow of non- in Poland, with approximately 40 data • relatively stable industrial demand structure, increasing role of SMEs as clients of data centres
digitization of analogue information and personal data between member countries. centres. The capital of Poland enjoys • growing propensity of companies to outsource IT - according to a study conducted at the beginning of 2020 by Deloitte and the ICAN
processes has been joined by the internet At the end of 2020, some 120 data centres great interest from hyperscalers (global Institute with the support of Google Cloud, 31% of Polish companies used cloud computing solutions and another 22% intended to
of things. In a knowledge-based economy existed in Poland with a total net area (i.e. providers of cloud services, such as implement them within three years
with the need for the rapid exchange dedicated to servers) of approximately Google and Microsoft), and providers of • growing external demand - interest of foreign customers in Warsaw as a local telecommunications hub due to the need to minimize
of information, industries related to the 100,000 sq m. An important feature of colocation services (renting server rooms delays in data transmission, the implementation of which is possible by shortening the distance between the user and the server and
collection and processing of information, the Polish market is the fragmentation of to multiple server owners) - especially building local data centres.
among them the data centre sector, are the sector, both in terms of the number those aiming to serve Central and Eastern
gaining in importance. of operators and the area of individual Europe. As the largest city in Poland
data centres. The vast majority of these and one of the largest in the CEE region,
Observers in recent years have noted
not only a dynamic growth in the value
of the market, but also a rapid increase
1 A dynamic increase in the amount of collected
and transmitted data resulting from, among other
4 In Poland, a systematic increase in both the number of
data centres and their processing power is expected;
in the infrastructure space occupied by
! things; digitization of enterprises, development of further consolidation of the data centre sector and an
data centres. The COVID-19 pandemic telecommunications and construction of next- increase in the importance of several key operators are
TRENDS
has further accelerated digitization, due A data centre is a building or part of it, consisting of a server room and generation (5G) networks, systematic growth in also expected.
to the fact that trade, work and education areas supporting its operation. Data centres are equipped with mechanisms the number of mobile devices. Added to this is
have moved online in a very short space and procedures to increase the security and continuity of server operation, the development of the financial services market,
of time. Concurrently, due to the COVID-19 such as: redundancy of servers, network elements and discs, ventilation and in which online sales are playing an increasingly
pandemic, market uncertainty has been cooling systems, fire protection and access control. important role - requiring the handling of a huge
growing, prompting companies to look number of transactions per unit of time.
2 5
for savings and deciding to outsource IT
services. As a result of the market changes ! The growing popularity of the outsourcing of IT Warsaw will remain the location of “first choice” in
currently being observed, the demand for services - the increasing willingness of companies Poland, but in the next few years dynamic development
data centre services and efficient data The location of the data centre is influenced by: to place their data processing equipment in of data centres in locations outside the capital city is
transmission is accelerating. specialized data centres, instead of building their possible due for lower IT infrastructure maintenance
• electrical installation infrastructure own server facilities. costs.
3 6
The introduction of data protection • energy cost
safeguards (GDPR) by the EU in 2018 • access to at least two Internet sources, preferably fibre-optic; each Cloud computing – the transfer of some data A growing supply of “green” data centres (powered
imposed on companies the need to with a separate infrastructure processing to companies offering cloud computing, by energy from renewable sources) due to legal
supervise their own data centres. This has • access to the internet backbone and proximity to internet exchange which will also operate on the basis of infrastructure requirements regarding CO2 emissions, and due to
become one of the key factors determining points offered by specialized data centre providers. their high energy efficiency and lower infrastructure
the development of this sector in Poland. • access to backup power system installations and UPS (uninterruptible maintenance costs.
The geographical proximity of Western power supply)
European markets, lower infrastructure
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