investments in Poland

Is Poland a Paradise for International Investors?

We have good news: Poland is on the podium! It took second place in the world in investing or doing business in, according to CEO World Magazine[1]. Our country is ranked behind Malaysia. The Philippines comes third followed by Indonesia and Australia. Has time come for the Eastern Hemisphere?

In 2018, the Polish economy grew by 5,1%. This year is going to be pretty good for Poland too – the World Bank forecasts that growth will hit no less than 4%[2]. The outcome of this seems to be really nice – we see international money flowing here. Polish Investment and Trade Agency, that handles 30% of foreign direct investments, helped companies from abroad to invest in our country around €1,8 billion[3].

Manufactures, shopping centers, and offices

Last year, the total value of the commercial real estate market exceeded €7.2 billion, which means an almost 45% increase over last year[4]! Maybe that is why Poland is called an “economic miracle”.

In 2018, Korea was the biggest investor in our country[5]. Koreans built, for instance, LG Chem factory[6] in Silesia producing electric vehicle batteries. The next plant of this type will be constructed by Belgian company Umicore[7].

There is no doubt that Asian countries are the largest group when it comes to investments in Poland. However, the USA and Germany also play a part in it. Investors from the latter country built another factory. This time, the one in Lower Silesia where Mercedes-Bens engines are made[8].

But it is the logistics sector that grew the most. In this case, a driving force is e-commerce that cannot simply exist without warehouses, like these ones belonging to Amazon scattered throughout the country.

Speaking of commerce… The Dutch Chariot Top Group acquired 28 malls with a total estimated value of €10 billion[9]. Among other transactions like that on the polish market, this one broke the record.

Offices also made it to the top. The Filipino company – ISOC Group – bought one of the biggest office buildings in Gdańsk[10]. That was probably the greatest transaction in Tricity. What is more, last year, American Madison International Realty become an owner of 50% of the interest in the Warsaw Spire tower office[11].

Home, work, shops and a dose of culture

Recently, co-living has appeared to be in fashion. YIT, a Finnish developer, is going to build the biggest space of this type in the whole country[12]. Except for apartments, there will be offices, shops, a gym, a reading room and relax zones. All of them, we will see soon in Warsaw.

Centrum Praskie Koneser could also be described as “a common lifestyle space”. It was expanded and modernized by a group with Belgian roots – Liebrecht & wooD[13]. Elektrownia Powiśle is another retail, office and residential space that is being constructed by international companies – Tristan Capital Partners, and White Star Real Estate[14].

Warsaw will gain a new downtown, known as Towarowa 22. It will be a complex of buildings designed by such a famous architect as Bjarke Ingels[15]. The project will include an outstanding park on the top roof.

Cultural buildings will also become the center of attention. Not only investors but also architects from abroad would like to contribute to enterprises in Poland. For instance, the lavishly rewarded concert hall in Szczecin was designed by Studio Barozzi Veiga[16]. What is more, Warsaw’s citizens cannot wait for the new edifice of the Museum of Modern Art. The designer of this winning project is Thomas Phifer[17].

Hotel investments

The good news is not over yet because the hotel industry develops very well too. Our country is in second place of East-Central Europe when it comes to the number of planned hotel investments[18]. Right here, right now, many international chains spring up like mushrooms, for instance: Barcelo, Steigenberger, Verso or Mott by Hilton. It is said, that in Warsaw, there will be up to 21 hotels till 2021[19].

Raffles Europejski Warsaw – the most luxurious hotel in Poland – reopened in spring 2018. It was renovated by both heirs – the Przeździecki family and the Czetwertyński family – and Vera Michalski-Hoffman, a Swiss billionaire[20].

Premium real estate

The premium real estate market in Poland will not disappoint us either. It grew by 9% last year. Today, it is worth 1,3 billion PLN, according to High Level Book[21].

Daniel Libeskind, an American architect born in Poland, designed Złota 44 – the tallest residential building in the whole of Europe that opened 2 years ago.

Again, Norman Foster is on everyone’s lips. He currently works on Varso Tower[22] – an investment that is going to be built by HB Reavis – a developer with HQ in Luxembourg. (Earlier, it was Foster’s concept of Warsaw Metropolitan that made him well-recognized here in Poland). Varso Tower is financed through a record-breaking loan of €350 million[23].

By the way, in our country, there are more and more exclusive boutiques. Poland’s first Hermes store will open soon, and it is going to be the first one in this part of Europe[24].

Poland is on a roll!

The Polish economy is in bloom. In addition, the location of Poland plays an important role when it comes to attracting investors from abroad. As a result, we can observe well-designed buildings. Here, we have just mentioned a part of them. There is no day without news about upcoming projects like that. Since the very beginning, the total value of international investments in Poland rose to estimated 712 billion PLN[25].

[1] https://www.thefirstnews.com/article/poland-2nd-best-place-in-the-world-to-do-business-says-new-report-4594

[2] https://www.verdict.co.uk/cards-international/news/contactless-payments-in-poland/

[3] https://www.wnp.pl/rynki-zagraniczne/polska-agencja-inwestycji-i-handlu-podsumowala-rok,337064_1_0_0.html

[4] https://wbj.pl/testing-new-levels/post/122383

[5] https://www.money.pl/gielda/wiadomosci/artykul/inwestycje-zagraniczne-w-polsce-koreanczycy,95,0,2414943.html

[6] https://businessinsider.com.pl/motoryzacja/budowa-drugiej-fabryki-baterii-do-samochodow-elektrycznych-lg-chem/wme0kek

[7] https://nto.pl/umicore-zainwestuje-w-nysie-14-miliarda-zlotych-belgijska-firma-zatrudni-400-osob/ar/13490467

[8] https://gazetawroclawska.pl/fabryka-mercedesa-pod-jaworem-to-juz-gigant-zdjecia/ar/13526382

[9] https://www.reuters.com/article/brief-griffin-to-acquire-polish-retail-p/brief-griffin-to-acquire-polish-retail-properties-in-1-bln-euro-deal-idUSL8N1O41OC

[10] https://www.rp.pl/Komercyjne/303079947-Argon-w-rekach-filipinskiego-inwestora.html

[11] http://www.propertynews.pl/biura/gigantyczna-transakcja-sfinalizowana-madison-international-realty-kupil-pol-warsaw-spire,63615.html+

[12] https://www.yit.pl/aktualnosci/aktualnosci-2018/yit-wybuduje-najwiekszy-co-living-w-polsce—smartti-mokotow

[13] https://www.rp.pl/Komercyjne/303079814-Stare-biurowce-jak-dziela-sztuki.html

[14] https://www.urbanity.pl/mazowieckie/warszawa/copernicus-square,b8573

[15] http://warszawa.naszemiasto.pl/artykul/towarowa-22-downtown-na-woli-z-parkiem-na-dachu-kinem,5034491,artgal,t,id,tm.html

[16] http://www.bryla.pl/bryla/1,85298,17883412,Ogromny_sukces_Polski__Filharmonia_w_Szczecinie_zdobyla.html

[17] https://www.urbanity.pl/mazowieckie/warszawa/rozpoczyna-sie-realizacja-muzeum-sztuki-nowoczesnej,w17182

[18] http://www.propertynews.pl/hotele/boom-na-hotele-trwa-zagraniczne-sieci-planuja-rozwoj-w-polsce,71375.html

[19] http://www.propertynews.pl/hotele/boom-na-hotele-trwa-zagraniczne-sieci-planuja-rozwoj-w-polsce,71375.html

[20] http://warszawa.wyborcza.pl/warszawa/7,54420,21654343,hotel-europejski-w-warszawie-najbardziej-luksusowy-prawie-gotowy.html?disableRedirects=true

[21] https://businessinsider.com.pl/finanse/fundusze/wartosc-rynku-luksusowych-nieruchomosci-w-polsce/vh1ch7m

[22] https://www.wallpaper.com/architecture/letter-from-poland-2019

[23] http://www.propertynews.pl/biura/rekordowe-finansowanie-dla-varso-hb-reavis-ma-350-mln-euro-na-budowe,71539.html

[24] https://businessinsider.com.pl/firmy/hermes-w-polsce-salon-moze-powstac-w-hotelu-europejskim/t1wswyd

[25] https://www.prnewswire.co.uk/news-releases/norman-logistics-sp-zo-o-the-economy-of-poland-will-boom-more-rapidly-under-the-influence-of-the-fourth-industrial-revolution-834783744.html