The market has been continually evolving and undergoing various transformations. From your experienced perspective, how do you assess the changes that have taken place? Where have the most spectacular transformations occurred?
Kamil Kowa, the managing director of Savills Poland: The warehouse sector has experienced the most spectacular growth – expanding more than twentyfold from 1.6 mln sqm in 2004 to over 35 mln sqm today. Furthermore, it’s no longer limited to traditional logistics or industrial assets. We’re now seeing the emergence of new segments, such as self-storage and data centres, driven by shifting consumer behaviours and technological advances. The office sector has changed significantly, particularly in regional cities, where the supply has grown by over 800 pct, fuelled by the development of shared service centres, among others. This is also one of the current challenges in these markets, as post-pandemic shifts in demand have led to relatively high vacancy levels in most regions. Retail has evolved from being dominated by shopping centres to the increasing share of retail parks and convenience formats in the market. In recent years, the living sector – including PRS, student accommodation, and co-living – has gained significant momentum. It’s also worth noting the growing role of domestic capital, which is partially filling the gap left by less active international investors. However, we still lag behind countries like the Czech Republic and Hungary in this respect. What Poland really needs is a systemic impulse, such as the introduction of REITs, to unlock the full investment potential of local investors.
How do you view the current state of the commercial real estate market? Which sector is performing best?
The first few months of the year saw a clear recovery compared to the same period in 2024. Although the number of transactions has dipped slightly in recent weeks, I remain a cautious optimist and hope that by the end of the year we’ll see a result comparable to last year’s – exceeding EUR 5 bln. Currently, the warehouse sector is showing the highest liquidity, thanks to its scale, solid fundamentals, and favourable global investor sentiment. Its size and growing role in supply chains keep it firmly in the sights of major international investors. Retail is also performing well – especially the convenience segment, which continues to be seen as a stable and safe capital placement. The main challenge here lies in the fragmented supply, which makes it harder to scale up portfolios. The office market has become increasingly selective, though there are still some attractive opportunities. Some older office buildings have significantly dropped in price, attracting investors interested in conversions or purchasing for owner-occupation. At the same time, modern office buildings – particularly in central Warsaw – continue to find buyers. As for student housing and PRS, we’re seeing the expansion of both existing and new platforms, as the sector is still built on strong fundamentals and faces a clear supply gap of modern projects, although investors remain selective.
It seems there’s no stopping the march of technology any more – and I’d argue there’s no reason why we should do this. How is the real estate market adapting to these innovative changes? How significant has the impact of AI been on its development?
Artificial intelligence is becoming one of the key forces reshaping the commercial real estate market. In response to growing tenant expectations, new regulations and dynamic economic shifts, AI is now being applied throughout the entire property lifecycle – from the planning and construction stages to the demand analysis, risk assessment, and operational and energy management. At Savills, we’ve been using AI-based solutions for some time now – both in our property management services and in building data platforms and valuation support processes. PropTech powered by AI doesn’t just streamline operations; it genuinely enhances the quality of decision-making, operational efficiency and asset value. That makes it one of the most important areas of development across the entire sector.
