Industrial Market Overview in Poland – Q1 2024

In the first quarter of 2024, Poland’s industrial market experienced significant developments across various key indicators. The total warehouse stock in the country reached 32.7 million sq m by the end of Q1, marking a 9.5% year-on-year increase. Notably, 75% of this stock is concentrated in five core regions: Mazovia, Silesia, Łódzkie, Lower Silesia, and Greater Poland.

Despite the growth in warehouse stock, the industrial market saw a 25% decrease in take-up compared to the previous year. This decline was primarily attributed to weaker demand from logistics companies, who were adjusting their strategies in response to economic slowdown and rising operational costs. However, the retail sector showed positive growth, driven by increasing retail sales and expanding e-commerce activities.

Construction activity in the industrial sector slowed down in certain regions, with Lower Silesia and Łódzkie expected to see reduced development volumes in the near future. Rental rates remained stable, but are likely to decrease due to high supply levels, leading to an increase in service charges. Vacancy rates stood at 8.2%, with some regions experiencing rates above 10%.

On the economic front, Poland’s GDP grew by 1.9% in Q1 2024, while inflation fell to 2.0%. Unemployment remained low at 5.3%, but manufacturing sales saw a decline of 0.7%. Despite these challenges, business confidence is improving, with expectations of increased production in the next 12 months. Moody’s forecasts a 2.8% expansion in the Polish economy for 2024.

Looking ahead, the industrial market in Poland is expected to face challenges and opportunities as companies navigate changing market dynamics and economic conditions. With a focus on optimizing operations and adapting to evolving consumer trends, stakeholders in the industrial sector will need to remain agile and responsive to drive growth and resilience in the market.

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Overall, the industrial market in Poland presents a mix of challenges and opportunities, with a focus on adapting to changing market conditions and driving growth in a dynamic economic landscape.

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