Commercial Real Estate Poland: A Comprehensive Guide

‍

Poland has become one of Europe’s most attractive destinations for commercial real estate investment. From office spaces in Warsaw to industrial hubs in Łódź, Poland’s commercial real estate market is diverse and rapidly expanding.

In this guide, we’ll explore the benefits, key sectors, investment opportunities, and critical considerations for navigating Poland’s commercial real estate market effectively.

Why Invest in Commercial Real Estate in Poland?

1. Strong Economic Growth

Poland boasts one of the fastest-growing economies in the EU, providing a solid foundation for the commercial property market. In 2022, Poland’s GDP grew by 5.1%, driven by industrial output, IT services, and international trade.

2. Strategic Location

Situated at the crossroads of Europe, Poland serves as a gateway between Western Europe, Central Asia, and the Baltics. Its location makes it ideal for logistics, transportation, and retail sectors.

3. Booming Industrial and Office Markets

Poland’s commercial real estate market has seen consistent growth in key areas:

• Office Spaces: Warsaw, Kraków, and Wrocław are hubs for international companies.
• Industrial and Logistics Hubs: Łódź, Gdańsk, and Poznań have attracted significant investment in warehouses and distribution centers.

4. EU Membership and Stability

Poland’s EU membership ensures transparency in regulations and access to structural funding, enhancing market stability for investors.

‍

‍

Key Sectors in Commercial Real Estate in Poland

1. Office Spaces

• Prime Locations: Warsaw leads with over 6 million m² of office space, followed by Kraków and Wrocław.
• High Demand: The demand for flexible office solutions, such as coworking spaces, has surged post-pandemic.
• Rental Yields: Warsaw offers rental yields of 5–7%, higher than in Western European capitals.

2. Industrial and Logistics Real Estate

• Poland is a major logistics hub with excellent connectivity via rail, road, and sea.
• The country has over 25 million m² of warehouse space, with continued growth in smaller cities.
• Notable Projects: The Solidarity Transport Hub will further enhance Poland’s logistics capabilities.

3. Retail Properties

• Shopping centers in cities like Warsaw and Gdańsk remain highly attractive.
• Retail investments focus on high-traffic areas and mixed-use developments.

4. Hospitality and Tourism

• Poland's growing tourism industry has increased demand for hotels, serviced apartments, and vacation rental properties.

Top Cities for Commercial Real Estate Investment

1. Warsaw

• Why Invest? As Poland’s capital, Warsaw is the country’s financial and business hub.
• Opportunities: Grade-A office spaces, luxury retail outlets, and high-demand coworking spaces.
• Rental Yields: Among the highest in Europe for commercial properties.

2. Kraków

• Why Invest? A historic city with a strong tourism sector and growing IT industry.
• Opportunities: Hotels, short-term rental properties, and mid-size office spaces.

3. Wrocław

• Why Invest? Known for its tech scene and affordable commercial spaces.
• Opportunities: Tech parks, office spaces, and coworking facilities.

4. Łódź

• Why Invest? A logistics powerhouse with a strategic central location.
• Opportunities: Warehouses, industrial parks, and distribution centers.

5. Gdańsk

• Why Invest? A coastal city with booming tourism and strong industrial growth.
• Opportunities: Hotels, retail outlets, and port-related infrastructure.

How to Invest in Commercial Real Estate in Poland

1. Conduct Market Research

• Understand regional trends, demand drivers, and pricing.
• Example: Logistics hubs in Łódź offer yields 2–3 percentage points higher than Warsaw office spaces.

2. Secure Financing

• Explore local and international mortgage options.
• Polish banks typically require a 20–30% down payment for commercial properties.

3. Work with Professionals

• Real Estate Agents: Experts in sourcing high-potential properties.
• Legal Advisors: Ensure compliance with zoning laws and tenancy regulations.
• Property Managers: Handle operations, tenant relations, and maintenance.

4. Perform Due Diligence

• Verify ownership documents, lease agreements, and financial records.
• Inspect the property’s condition and potential for upgrades.

5. Develop a Business Plan

• Define your investment goals, target audience, and expected ROI.
• Plan for potential risks, including market fluctuations and regulatory changes.

Costs Associated with Commercial Real Estate in Poland

1. Purchase Price

Commercial property prices vary by sector, location, and building type.

2. Taxes and Fees

• VAT: Typically 23% for commercial properties (refundable under certain conditions).
• Notary Fees: 0.25–2% of the property’s value.

• Property Tax: Based on property size and usage.

3. Ongoing Expenses

• Property management fees.
• Maintenance and utilities.
• Insurance premiums.

Benefits of Investing in Commercial Real Estate in Poland

1. High Yields

Poland offers higher rental yields compared to Western Europe, with industrial properties often exceeding 7%.

2. Long-Term Tenancy Agreements

Commercial leases in Poland typically last 5–10 years, ensuring stable cash flow.

3. Growing Demand

Key sectors like logistics and office spaces continue to attract foreign companies and tenants.

Challenges to Consider

• Currency Fluctuations: Non-EU investors should consider hedging strategies to mitigate risks.
• Regulatory Compliance: Adhering to Polish building codes, zoning laws, and tax regulations is crucial.
• Economic Uncertainty: Monitor GDP growth, inflation, and geopolitical factors.

FAQs About Commercial Real Estate in Poland

1. Can foreigners buy commercial real estate in Poland?

Yes, foreigners can purchase commercial properties, but land purchases may require government permits.

2. What are the key sectors for commercial real estate investment in Poland?

Office spaces, industrial properties, retail outlets, and hospitality assets are the most promising sectors.

3. What is the average rental yield for commercial properties in Poland?

Rental yields vary by sector but typically range from 5–7% for office and retail properties, with higher yields for industrial assets.

4. Are there additional costs when buying commercial real estate in Poland?

Yes, expect VAT (23%), notary fees, property tax, and ongoing maintenance costs.

5. How can I manage a commercial property in Poland?

Professional property management services handle tenant relations, maintenance, and legal compliance.

Conclusion

Commercial real estate in Poland is a lucrative investment opportunity for those looking to capitalize on the country’s economic growth and strategic location. By choosing the right sector, conducting thorough research, and working with local experts, you can secure high returns and long-term stability.

Ready to explore commercial real estate opportunities in Poland? Contact us today to discover the best properties and start building your portfolio!

‍

"Poland’s commercial real estate market is where tradition meets modern innovation, offering unparalleled opportunities for businesses and investors alike."

‍