The Polish Council of Shopping Centers has denounced plans to introduce restrictions for new shopping malls throughout the country. The plans pose a major threat to new developments, the council warned in a one-page advertisement published Wednesday in Polish newspapers.
The Polish Council of Shopping Centers has denounced plans to introduce restrictions for new shopping malls throughout the country. The plans pose a major threat to new developments, the council warned in a one-page advertisement published Wednesday in Polish newspapers.
A new law aimed at restricting the construction of new shopping centres was passed by Poland's lower house of parliament on 11 May. The bill is currently before the senate. If the law comes into effect, developers in Poland will be required to obtain an additional permit from local authorities for developments of between 400 and 2000 m2. Developments in excess of 2000 m2 will require permission from regional authorities.
The plans are 'devastating' for developers, said Gryegory Pekalski, director of Trigranit Polska. 'The Polish property market is already suffering from labour shortages and rising prices for building materials. These plans are very unfortunate.'
The new law is aimed at protecting small Polish retailers and fending off a further influx of western investors. Warsaw in particular is seen in some quarters as suffering from an oversupply of shopping centres. While conceding that some parts of the market are reaching saturation, Pekalski pointed out that the recent opening of Zlote Tarasy in downtown Warsaw had not affected other major shopping centres in the Polish capital. 'There has been no drop in demand.'
Ironically, the law may unintentionally harm small retailers by stimulating the further proliferation of discounters, warned Remco van der Kroft of Warsaw-based law firm Donaski Yakryewski Palinka. 'The law excludes developments of 399 m2 and these are the easiest to build. Upon obtaining the extra permit, developers have three years to complete construction. That is virtually impossible for larger developments as they normally take between four and five years to complete - and that is after the building and planning permits have been obtained. That part of the process still has to be set in motion once the extra permit has been given.'
Van der Kroft believes the law may eventually be torpedoed by the European Commission for conflicting with its services directive. 'But in the meantime it could cause quite some havoc.'
