King Sturge: good prospects for Polish logistics market

Prospects for development in the Polish logistics market are promising, according to research published by King Sturge. The international property consultant pointed to a good level of land supply and cost-effective rents (from EUR 2.90 to EUR 5 per m2) that have made Poland an attractive location for many occupiers.

However, currently per capita logistics space in Poland amounts to only 0.46 m2, compared to about 2.94 m² in England, the consultancy noted, suggesting that there is ample room for development. The economy is booming, with Oxford Economic Forecasting predicting growth in gross domestic product of 6% this year, after the 5.8% rise seen in 2006.

While an inadequate transport infrastructure has acted to some extent as a brake on the market, King Sturge pointed to major plans to improve that situation over the next decade. In 2007, Poland will become the main recipient of EU financing, helping the country to fund these projects.

According to King Sturge, there was a record level of leasing for warehousing in the country in 2006, when 917,000 m² was taken up. Demand for warehousing was led by sites in Lower Silesia, which took up 17.3% of the total, followed by central Poland (16.7%) and Upper Silesia (15.5%).