Polish promise: Logistics, light industrial sector highly appealing to occupiers

Poland’s logistics and light industrial sector offers more affordable access to power, land and labour within easy reach of key European markets, making it highly appealing to occupiers, writes Tom Duncan, head of investment strategy and research at Cromwell Property Group.

International investors have shunned Poland since the Ukraine invasion. Polish real estate investment volumes in the second half of 2022 were 35 percent down on the five-year average, according to RCA. Polish prime yields have moved out between 50 basis points and 90 basis points over the past year, and it remains one of the highest-yielding European markets, being in parallel with a fundamentally strong and growing economy

A drop in Polish real estate appeal makes sense at first glance, given its proximity to the conflict and subsequent high associated risk perception. However, logical reasoning implies that this heightened risk perception is misplaced. Far from