According to the latest RICS Commercial Property Monitor, occupier demand in Poland grew relatively firmly during Q2, with the pace of growth broadly matching that of the previous quarter. Notably for the first time since 2014, the reading for occupier demand broadly matched that of supply, pointing to a more balanced trend emerging.
The Occupier Sentiment Index (a composite measure capturing overall momentum) slipped to -5 from -1 in Q1. Nevertheless, the index is still pointing to a broadly stable picture in the occupier market.
Occupier demand grew relatively firmly during Q2, with the pace of growth broadly matching that of the previous quarter. The sector breakdown shows demand rose most significantly in the office and industrial sectors and more modestly across retail space.
Availability of leasable space continued to rise, albeit more moderately than in the prior quarter. Notably for the first time since 2014, the reading for occupier demand broadly matched that of supply, pointing to a more balanced trend emerging.
Alongside this, development starts continued to increase, led by the firmest growth in the office sector, although construction activity gained momentum in the industrial and retail sectors over the quarter.
Despite excess supply pressures easing somewhat in Q1, twelve month rent expectations have fallen further into negative territory. Indeed, with the exception of prime retail, rents across all sub-sectors are expected to decline in the coming year.
Investment Market The Investment Sentiment Index dropped from +19 in the previous quarter to a broadly neutral -1 in the latest results. This suggests conditions were more or less flat in the investment market during Q2.
Investment enquiries have once again steadily increased, with the pace of growth evenly spread across all sectors. At the same time, foreign investment enquiries also continued to rise, however the pace of growth moderated noticeably in the office and retail sectors.