Polish retail property delivery to reach 650,000m[sup]2[/sup] per annum: DTZ

Some 260,000 m² of modern retail space was delivered in Poland during the first half of 2012, according to DTZ. The completions comprised 19 new projects, including 10 new shopping centres and four extensions, three stand-alone retail warehouses and two retail parks.

The completions figure marked a 16% decrease over the same period in 2011. The majority of completed projects did not exceed 15,000 m² gross leasable area.

'This represents a continuation of the greater investor focus on small-scale retail projects which are perceived as more resistant to economic fluctuations and enjoy high tenants' interest,' the property adviser said in its Polish Property Times Q2.

DTZ said, however, that there is significant development activity which is expected to last until 2014 by when all publicly announced projects will be built. The annual supply of projects in the next few years, inclusive of all retail formats, is expected to amount to 650,000 - 800,000 m² per annum. The majority of these projects will be developed in shopping centre format.

'The retail market in Poland is becoming more mature, not only in terms of types of retail space, but also in terms of the geographical split,' the report claimed. 'The major agglomerations dominate the market, however over the last four-five years medium and small cities have been gaining in importance, substantially increasing their market share in the overall volume of the annual supply. 31% of supply delivered in H1 2012 is located in cites below 100,000 inhabitants.'

The five largest projects scheduled for completion in the latter part of 2012 or 2013 are: Europa Centralna (67,000 m2) in Gliwice; Galeria Bronowice (60,300 m2) in Kraków; Galeria Katowicka (50,500 m2) in Katowice; City Center Rzeszów (47,100 m2) and the Wzgórze extension (45,500 m2) in Gdynia.