Introduction to the Polish Real Estate Market

Poland has emerged as one of the most attractive real estate markets in Central and Eastern Europe, drawing interest from investors worldwide. With a resilient economy, a strategic location, and an increasingly sophisticated property sector, Poland presents a range of opportunities across residential, commercial, and industrial real estate.

In this first article of our Investing in Poland series, we will introduce you to the key aspects of the Polish real estate market, why it continues to attract foreign investors, and what factors contribute to its growth. In upcoming articles, we will dive deeper into practical steps for investors, from setting up a company, conducting due diligence on property transactions to obtaining finance for property investments, acquiring and commercializing property, and why it pays to seek professional help.

Market Overview

Despite global economic uncertainties, Poland’s property sector remains dynamic. The market has seen significant transaction activity across various sectors, maintaining its position as one of Central and Eastern Europe’s most progressive property markets.

In recent months, several notable transactions have shaped the landscape. Madison International Realty expanded its Polish portfolio by acquiring the Warsaw Spire C office building from CA Immo for approximately 100 million EUR. Meanwhile, Ghelamco, a prominent developer, sold The Warsaw Hub, a mixed-use complex, to Google for 583 million EUR. Ghelamco also sold the prestigious Warsaw Unit office building to Swedish investor Eastnine AB. This landmark deal underscores international confidence in Poland’s premium office assets. Additionally, Skanska completed two notable transactions, divesting the P180 office building to a joint venture between Investika Real Estate Fund and Bud Holdings, while also selling the Studio B office building in Warsaw to Stena Real Estate AB, further demonstrating the Swedish appetite for Polish commercial properties.

In the logistics sector, GLP and Vestas formed a joint venture to acquire a portfolio of distribution centers across Poland valued at over 1 billion EUR, while CTP expanded its footprint through the acquisition of seven logistics parks from 7R for approximately 290 million EUR.

The retail sector has also seen activity with EPP completing the sale of a portfolio of twelve retail properties to Redefine Properties and Echo Investment for 692 million EUR, reshaping the ownership landscape of Poland’s shopping centers.

Notable developments in Warsaw

Warsaw’s business district is undergoing a remarkable transformation, emerging as a modern hub for both commercial and residential developments. Several high-profile skyscraper projects are redefining the city’s skyline, marking a new era of urban growth.

Among the most anticipated is The Bridge, a striking 40-story office tower designed by the renowned UNStudio. Currently under construction, the skyscraper will soar to 174 meters, offering approximately 47,000 square meters of premium office space upon its completion in 2025.

Another significant project is Skyreach, a planned residential tower rising 170 meters. Designed to house 900 apartments, the development was initially scheduled to break ground in March 2024. However, as of March 2025, construction has yet to commence.

Completing the trio of major developments is Upper One, a dynamic mixed-use complex taking shape at the intersection of Aleja Jana Pawła II and Grzybowska Street. The project features a 34-story office tower alongside a 17-story hotel, with completion expected in Q4 2026.

Emerging trends

Sustainable development is becoming increasingly significant in Poland, with a growing emphasis on eco-friendly building practices and energy-efficient properties, aligning with global sustainability goals. Additionally, the integration of smart building technologies is enhancing property management and tenant experiences, making properties more attractive to investors.

Meanwhile, there are ongoing discussions on how to further stimulate the residential development market, with policymakers exploring measures to enhance housing affordability and investment attractiveness.

Moreover, a notable trend involves the planned demolition of outdated buildings that no longer meet current quality standards, as renovating them is often deemed economically unfeasible. For instance, in 2023, building inspectors issued demolition orders for 310 residential buildings due to poor maintenance and neglect. This approach reflects a broader strategy to modernize urban spaces and improve living conditions by replacing deteriorated structures with new, compliant developments.

Why Poland attracts foreign investors?

Poland offers several compelling advantages for foreign investors, particularly those from the Netherlands:

Strategic location

Poland’s central European location provides access to over 250 million consumers within a 1,000 km radius. This strategic position makes it an ideal logistics and distribution hub for companies serving both Western and Eastern European markets.

Economic stability

Despite global challenges, Poland has maintained relatively stable economic growth. The country’s economy demonstrated resilience during recent downturns, with a diversified economic base helping to mitigate risks associated with sector-specific slowdowns.

Strong legal framework

Poland’s membership in the European Union ensures that its legal system is aligned with EU standards, providing foreign investors with familiar regulatory frameworks and protections. This creates a more predictable environment for Dutch investors accustomed to EU regulations.

Skilled workforce

The country boasts a well-educated workforce with strong technical skills and language proficiency. Labor costs remain competitive compared to Western European markets, offering a balance of quality and value.

Growing market

Poland’s internal market of 38 million consumers continues to see rising purchasing power. Growing domestic consumption creates opportunities across various real estate sectors, from retail to logistics and residential development.

Dutch-Polish connections

For Dutch investors specifically, historical trade relationships and cultural familiarity provide a foundation for business partnerships. The Netherlands is consistently among the top foreign direct investors in Poland, with many Dutch companies having established successful operations in our country.

Attractive yields

Compared to saturated Western European markets, Polish real estate continues to offer more attractive yields across most sectors. While prime yields have compressed in recent years, they still maintain a premium over comparable assets in markets like Amsterdam or Rotterdam.

As Poland continues to develop its infrastructure and economic position within Europe, it remains an attractive destination for property investment, offering Dutch investors opportunities for portfolio diversification with compelling risk-adjusted returns.

Next to come

Now that we’ve set the stage, the next article will guide you through the process of setting up a company in Poland covering business structures, legal requirements, and registration steps.

 

About authors

Walentyna Okuń, Associate from the Real Estate team at GESSEL, focuses her practice on real estate transactions, joint ventures, the development process, investment and construction matters, and leases.
Maciej Boryczko, Partner, Head of the Real Estate team at GESSEL, specializing in comprehensive and dynamic legal services for all real estate issues and processes of market stakeholders – developers, landlords, tenants, lenders and borrowers, sellers and buyers of real estate.