Ceepackaging

Analysis

Warsaw’s retail market is prone to recommence expansion

Although construction, real estate and retail
remain among the most hit by the current
economic environment, Poles’ appetite for
consumption remains strong. TNS OBOP’s
latest results indicate that seasonal spending
in December 2009 grew by 4.6 billion yearon-
year to 23.9 billion zlotys. Nevertheless,
with many uncertainties around job market
and a considerable slowdown in the
residential units sales and construction, it is
still too early to enjoy market’s recovery.
The best retail schemes, such as Arkadia,
Galeria Mokotow and Zlote Tarasy, remain
very popular among the customers, retailers,
as well as potential investors. There are
some signs that several deals on Warsaw’s
retail assets will go through in 2010,
marking the return of the market activity as
well as setting up the price levels.
Warsaw is now perceived to be a well
provisioned market with total retail stock
reaching nearly 1.3 million sq m of GLA.
2009 has seen only limited construction
activity as developers continue to revise their
expansion plans. Nevertheless, there are
some signs of financial easing as at least
some developers are being able to secure
adequate financing and soon we shall see
the number of projects, that were put on
hold, being re-initiated.
Warsaw’s untapped retail potential remains
considerable. Given the existing market
niches, which create good opportunities for
new retail developments, in the short to
medium term Warsaw’s retail market is
prone to recommence expansion.