The Real Estate Challenge 2022
Economic and geopolitical uncertainty disrupted real estate trends initiated by the hybrid lifestyle.
Hybrid work drove changes into other areas of our lifestyle, particularly how, where and when we live, eat and shop. However, with lower GDP growth, surging inflation and financing costs especially in local currency, the balance between supply and demand has been disrupted.
In the office sector, occupiers are now focused on quality versus footprint and redefinition of their workplace strategies. On the other hand, high costs of fit-out and general inflation of occupancy costs paired with very low construction pipeline of new office space (especially in Warsaw), renewals are the leading force in demand and average lease term in new buildings increases to 7+ years.
Living sector faces the biggest challenge. Today Poland needs more apartments than before, but all the signs show that we will be building less. At the same time, we have a massive gap in flats for rent.
E-commerce frenzy has boosted logistics demand to an exceptional level. New living and shopping habits are influencing real estate more than ever. The city warehouse vacancy is at record low level and rents or on an upward trajectory.
