THE RISE OF RESPONSIBLE DEVELOPMENT AND ESG PRACTICES
Bopro's 40-Year Legacy with Stefaan Martel, Monika Wozniak-Zawiola and Peter Garré
PLUS: SECRETARY OF THE CITY OF WARSAW, MACIEJ FIJAŁKOWSKI ON HOW WARSAW BALANCES DEVELOPMENT WITH CULTURAL HERITAGE DREAM SPACES, NEW HORIZONS: A JOURNEY INTO ING HUBS POLAND'S FUTURE
Interview
Peter Garré, CEO of Bopro Interview by Beata Socha 22
Partner Interview
Magdalena Domagała, Real Estate and Project Manager of Dream Space Warsaw, and Mariusz Sosna, ad interim Head of ING Hubs Poland 26 Poland:
Europe’s Future
Secretary of the city of Warsaw, Maciej Fijałkowski
Interview by Morten Lindholm
Robert Golnik, IT Senior Development Manager with FP&A expertise
32 Feature Floods & Opportunities By Sean
Reynaud
37 Lokale Immobilia News
Six Questions for Bartłomiej Kordeczka, Poland's Co-Managing Partner and the Deputy Head of Real Estate at Dentons In conjunction with our partnership with Entralon Real Estate Trends 53 Tech News
Natalia Hatalska, CEO and founder of the infuture.institute Interview by Sean Reynaud 59
Museum of Modern Art Opening in Warsaw
Dalí Cybernetics at Art Box Experience in Fabryka Norblina, Warsaw
Poland’s rapid rise in labor costs, particularly the double-digit wage growth seen in recent quarters, is creating mixed effects on the country's economy and competitiveness. While wage increases support household consumption and sustain domestic demand, they are also contributing to inflationary pressures and impacting export-oriented industries.
Wages in Poland grew by over 11% year-on-year in mid-2024, significantly outpacing inflation rates. According to ING, this wage growth is fueled by a tight labor market and regulatory minimum wage hikes .
Companies, especially in the service sector, are generally able to pass on these higher costs to consumers. However, this also means inflation is likely to remain elevated, with projections suggesting it could reach around 5% by the end of 2024 .
The high labor costs could also weaken Poland's competitiveness over time if productivity does not keep pace.
Industries like manufacturing, textiles, and furniture, are where the strain is most evident. A strong Polish zloty, combined with rising labor costs, makes Polish exports more expensive, reducing their competitiveness in international markets. Companies in export-heavy sectors like furniture and electronics are finding it harder to compete with Asian counterparts, who offer lower prices .
In summary, Poland’s labor market has historically been a strong driver of economic growth, benefiting from a highly skilled workforce at competitive wages compared to Western Europe. However, the rapid rise in wages
risks eroding this competitive advantage. The Polish Economic Institute points out that although GDP growth is expected to rebound to 2.6% in 2024, wage-driven inflation and stagnant investment in key sectors could limit more robust growth, but wage growth supports domestic consumption, which in turn boosts GDP.
Polish REITs: A Domestic Investment Challenge
Despite the global success of Real Estate Investment Trusts (REITs), Poland has struggled to attract significant domestic investment in this sector. The lack of a clear legal framework for REITs deters investors seeking predictable investment environments. Additionally, many Poles prefer direct property ownership over financial instruments like REITs. High inflation and interest rates have also made real estate less attractive in recent years compared to other assets.
To address these challenges, Poland must establish a robust REIT framework, educate investors, and offer tax incentives to create an attractive investment environment. This would not only boost domestic participation but also attract foreign capital, driving further the growth of the Polish real estate market.
It will be exciting to follow the developments in these areas in the coming months/years, especially as the government plans and discusses further measures to enhance control over the labor market through new regulations. Also check out our story about how Poland has switched its competitiveness angle from costs to quality of labor.
I wish you a pleasant read. Morten
GUESTS
Maciej Fijałkowski
Secretary of the city of Warsaw
Born in 1978, a graduate of Adam Mickiewicz University in Poznań, currently serving as Secretary of the City of Warsaw. Employed at Warsaw City Hall since 2007, responsible for coordinating economic and innovation policies, managing the investment budget, overseeing digital transformation, EU funds, public transportation, and fostering metropolitan cooperation.
Interview on page 26
Magdalena Domagała
Manager,
head of
Real Estate Management at ING Hubs Poland
Magdalena is in charge of real estate projects that facilitate collaboration; transforming the workplace, she leverages modern technology and fosters simplicity and accessibility of adopted solutions. She has a master’s degree in English literature (US), a graduate of managerial studies and real estate valuation (WSB), business negotiations (Franklin University), and ESG in construction (Warsaw University of Technology); she is also a figure skating coach and judge, winter sports activities enthusiast and practitioner, and pragmatic at heart.
Interview on page 22
Mariusz Sosna
ad interim Head of ING Hubs Poland and Cluster Lead of Business Support Cluster
Mariusz is a seasoned manager, currently serving as the ad interim Head of ING Hubs Poland, while also acting as Director overseeing a workforce of over 450 people across diverse IT and support teams. Actively engaged in IT projects, he focuses on launching new services, team building, and organizational development to drive growth and innovation. In his daily work, he puts people and their development first, as they are the foundation of ING’s success. Since 2020, he’s actively mentored and supported other managers both in Poland and abroad, sharing his knowledge and business experience.
Contributors Beata Socha Robert Golnik Sales Katarzyna Pomierna kpomierna@valkea.com
Print & Distribution Krzysztof Wiliński dystrybucja@valkea.com
Event Director, Valkea Events Magda Gajewska mgajewska@valkea.com
e-mail: wbj@wbj.pl WBJ.pl For enquiries,subscriptions-related please email us at wbj@wbj.pl WarsawBusinessJournal @wbjpl
Silesia Region, Metropolia & Katowice City Your Land of Opportunities
The prestigious Silesia Region with its unique and Poland’s only formal metropolitan area – the GZM (Górnośląsko-Zagłębiowska Metropolia) and the vividly developing regional capital city of Katowice invite you to dive into the world of your best investment destination.
This very well connected area located in southern Poland with almost 400 km of motor and expressways, Katowice Airport with over 5,6M passengers in 2023 - one of the leaders of Poland’s cargo freight (located in close proximity to 2 other international airports: Kraków Airport and Ostrava Airport) and a transshipment terminal which facilitate transport of goods between China and Europe, offers you more than any other place.
Cooperation of regional, metropolitan and municipal authorities supports over half a million of enterprises, including almost 6,000 foreign companies. Silesia, as the economical heart of Poland, with its 12% GDP, is in the top 10 of the Financial Times report on European Regions and Cities of the Future 2024 in the FDI strategy and cost-effectiveness categories. Moreover, Silesia is the home for the Katowice Special
Economic Zone, recognised as Europe’s best freezone.
The GZM with its 41 municipalities unifies the socio-economic development, mobility and environmental matters, giving the synergetic background to a vast area in the heart of the Silesia Region and the fast developing Katowice City. Huge potential of the metropolis and the region in terms of technological solutions, research and development, educational, real estate, transport and leisure background, serves as a great base for the investment-triggering Katowice City
Katowice City in recent years has transformed from a heavy industry city to a business centre of our region and the GZM. The economical attractiveness of Katowice is made by a couple of factors. The first one is the transportation and infrastructure - thanks to the good location of the city, investors have access to 2 highways: A1 and A4, and Silesian Intercity Road which is a high-speed freeway between the cities of the GZM. The second factor is the business environment, supported by 751,000 sq m of office space, low unemployment rate (1%, one of the lowest in Poland) and 19 universities with almost 90k
students and over 22k graduates a year, offering a great human resources potential for investors.
The third factor is the diversified economic structure which includes IT, engineering design, banking, education, culture, construction, medicine, commerce, energy, pharmacy, food industry, automotive industry, transport and logistics, machine industry. The strongest one is the Business Services Sector which is represented by 140 BSS centers with 33,400 employees (in the GZM) and the MICE sector with 8,261 conference days and 730,000 participants in Katowice.
Katowice City is also entering the new era of development with its New Technology District – the Katowice Gaming and Technology Hub. It will be located in the historical post-industrial buildings which will be transformed into a place for IT companies, gaming industry, startups and other tech companies. The future of the IT, Gaming and Tech industries in the Silesia Region is shaping up in Katowice City!
Silesia Region
• perfect location for logistics
• 4.4M residents
• highest urbanisation level in Poland (76%)
• 522k enterprises
• 12% of Poland’s GDP
The GZM
• 2.5k km2 of a well-connected megacity
• 41 closely collaborating municipalities and communes
• 2.1M residents
• 19 universities
• 260k enterprises
Katowice City
• 7th place in “Top 10 Large European Cities of the Future 2024 – fDi Strategy”
• 3 international airports in one-hour drive
• 38 foreign languages in business services centres
Partnership between the Silesia Region, the GZM and the Katowice City is a unique one. Those three entities work for the well-balanced and well-tailored investment destination, supported by the mobility, human-resource, research and development, labour-force and space potential. The peaceful and friendly surroundings, the growing international population, the engaged and open regional, metropolitan and municipal environment, the beautiful green areas make this location a fantastic place to live and work. The growing interest of international businesses and investors gives evidence to the investment potential of that land
- Your Land of Opportunities!
To discover more, visit: invest-in-silesia.pl invest.katowice.eu infogzm.metropoliagzm.pl/en
IN REVIEW
SUMMARY OF FLOOD DAMAGE ACROSS POLISH PROVINCES
The recent floods have caused extensive damage across multiple provinces in Poland. In the hardest-hit Lower Silesia, estimated losses amount to PLN 3.8 billion, with over 11,500 buildings impacted and 6,544 people evacuated.
Other regions, such as the Opole and Silesian provinces, are also grappling with significant destruction, with damage to roads, bridges, residential, and farm buildings. While the final estimates are still being calculated, the situation remains critical, with ongoing efforts to assess and mitigate damage.
The state of natural disaster affects nearly 2.5 million people, and the government has pledged swift action to restore infrastructure and provide relief.
Allegro’s leadership is evaluating options for deploying its cash reserves, according to CFO and executive director Jonathan Eastick. Speaking during a conference call, Eastick mentioned that the board is aligning capital allocation strategies with its long-term vision as part of its annual planning discussions.
In the second quarter, Allegro made significant strides in reducing its leverage, with net debt to adjusted EBITDA dropping to 1.04x. This progress was driven by robust cash flow, providing the company with more flexibility to invest in growth initiatives. Earlier in May, Eastick projected that Allegro would further reduce its leverage to 1x over the coming quarters.
As Poland's leading e-commerce platform, Allegro primarily facilitates sales by businesses through its Allegro.pl marketplace. Owned by Cinven, Permira, and Mid Europa funds since 2016, Allegro went public on the Warsaw Stock Exchange in October 2020 and is a key player in the WIG20 index.
BUSINESS
Rainbow Tours sees presales rise
Rainbow Tours' pre-sales for Winter 2024/2025 trips (November 2024 –March 2025) reached 68,739 as of mid-September, marking a 13.6% yearon-year increase. The company, which debuted on the Warsaw Stock Exchange in 2007, specializes in its own tour packages while also facilitating sales from other operators. Besides holiday packages, Rainbow Tours offers tickets for flights, coaches, and ferries. This growth in pre-sales reflects the steady demand for winter tourism, signaling a strong season ahead for the travel operator.
ENERGY
EU: the EC approves Polish state aid program worth €1.2 bln
The European Commission approved a €1.2 billion Polish state aid program to support investments in strategic sectors for transitioning to a net-zero emission economy. The program will provide direct grants to companies involved in the production of batteries, solar panels, wind turbines, heat pumps, electrolyzers, carbon capture devices, and key components for these technologies.
The Commission deemed the program compliant with temporary state aid rules, as it encourages the
production of essential equipment for a green transition and adheres to funding limits. The program aims to accelerate ecological transformation and support industries crucial for implementing the EU's Green Deal industrial plan.
ENERGY
Cogeneration auction awards PLN 775M
The President of the Energy Regulatory Office (URE) has concluded the third cogeneration auction for 2023. Six producers won bids, securing PLN 775 million to support the generation, grid introduction, and sale of over 2.8 TWh of electricity from high-efficiency cogeneration units. Winning companies include Energa Kogeneracja, ESV Wisłosan, IDEA 98, Thermal Energy Company, U&R CALOR, and Wołomin Heat Power Plant. A total of PLN 3.7 billion was available in the auction held in mid-September, while earlier auctions this year saw mixed results, including no winners in March.
ENERGY
ORLEN discovers major oil deposit
ORLEN has discovered over 100,000 tons of recoverable crude oil at the Rzeczyca deposit in Lubuskie Province. Additional nearby structures suggest the total resources could exceed 500,000 tons. The Rzeczyca discovery is one of the largest oil finds in Poland in recent years. The new Rzeczyca-1 well, drilled in Grodziszcze, is expected to produce about 16,500 tons of oil annually. ORLEN plans to transport the crude to the nearby Radoszyn Oil and Natural Gas Mine. Local governments will benefit significantly from the exploitation fees, receiving up to one million zlotys per year. The Lubuskie Province remains a key region for domestic oil production, contributing to ORLEN’s 824,000 tons of output in 2023.
ENERGY
GUS: in ‘23, household energy consumption decreased
In 2023, energy consumption in Polish households declined, according to the Central Statistical Office (GUS). Electricity usage fell by 1%, district heating by 4%, and gas consumption by 4.1% compared to 2022. Total electricity consumption reached 29.8 TWh, while per household it decreased by 1.5%. Urban areas saw a larger drop (2.3%) compared to rural areas (0.5%).
Additionally, Poland added 250 km of heating networks and 3,100 km of gas distribution networks. Despite an increase in gas consumers, household gas usage fell by 4.1%, with urban consumption declining by 4.9% and rural consumption by 2.4%. Fuel sources for district heating were mainly solid fuels (60.7%) and gas (36.7%).
ENERGY
Energy prices and inflation
Cezary Kochalski, a member of the Monetary Policy Council (MPC), emphasized the crucial role of energy prices in shaping inflation in 2025. Speaking at the Krynica Forum 2024, he noted that inflation could rise or fall depending on energy price decisions, which are essential in determining the Consumer Price Index (CPI) at the start of 2025. The MPC aims to reach its inflation target by 2026, with projections show-
ing a decline to 3% year-over-year by Q1 2026. Kochalski highlighted that core inflation, driven by service prices, remains persistent. The Council is closely monitoring labor costs, inflation abroad, and decisions from other central banks to adjust its policies.
ECONOMY
Enea targets 1 GW in renewables by 2026
Enea Group plans to boost its renewable energy capacity to over 1 GW by the end of 2026, up from its current 200 MW, according to Bartosz Krysta, the company's board member for commercial affairs. Enea is implementing 21.6 MW in photovoltaic and 10 MW in wind projects by the end of 2024, with further targets set for 2025, including 384 MW in PV and 80 MW in energy storage. By 2026, it aims to reach 482 MW in PV, 44 MW in wind, and 310 MW in storage. The figures exclude potential acquisitions expected during this time.
ECONOMY
Poland’s Serafin gets EU budget role
Polish candidate Piotr Serafin will oversee the EU budget in Ursula von der Leyen’s second European Commission, raising Poland’s profile. Serafin will report directly to von der Leyen, bypassing the six deputy commissioners. His portfolio includes preparing
Quote of the month
the new multiannual EU budget, combating fraud, and managing EU administration. Prime Minister Donald Tusk emphasized that Serafin’s role focuses on "money, staff, and priorities." The updated Commission structure aims for gender and geographical balance, with key roles going to representatives from both Western and Central Europe. Serafin's appointment strengthens Poland’s influence, as the EU budget is crucial for future European financial planning.
ECONOMY Eurostat: Labor costs in Poland in Q2 ‘24 +12.9% y/y
In the second quarter of 2024, nominal hourly labor costs in Poland increased by 12.9% y/y, following a 14.1% increase in the first quarter and a 13.3% increase in the second quarter of 2023, according to Eurostat.
ECONOMY
Polish Budget Criticized for Overspending, Experts Warn of Underestimated Risks
Financial experts are raising concerns about Poland's 2024 budget, warning that policymakers and investors may be underestimating the economic risks posed by excessive government spending. According to analysts, the Polish government’s current fiscal approach could lead to long-term financial insta-
“About 25,000 ha of this are areas where crop production is carried out, where compensation will be needed, mainly due to corn production. This also applies to soy, potatoes and sugar beet, as well as new rapeseed crops”
Adam Nowak, Deputy Minister of Agriculture
IN REVIEW
FINANCE
Cash loan growth surges in 2024
Banks and credit unions issued 13.9% more cash loans year-over-year in August 2024, totaling 344.2 thousand loans, according to the Credit Information Bureau (BIK). In value terms, loans grew by 27.8% to PLN 8.316 billion. The average loan amount rose by 12.2% to PLN 24,159.
From January to August 2024, the number of cash loans increased by 11.5% year-over-year, while their value surged 24.8% to PLN 60.874 billion. BIK’s chief analyst, Waldemar Rogowski, attributed this rise to growing consumer needs, inflation, and greater loan availability due to higher incomes. Loans exceeding PLN 50,000 were a key driver of this growth.
strong sales to non-EU countries, which increased by 7%.
Additionally, foreign direct investment in Poland remains robust, with growing sectors like battery production benefiting from the shift towards electromobility, even as German industry struggles to adapt. Poland's industrial output is now 17% higher than pre-pandemic levels.
FINANCE KGHM secures $500M for Chilean mine
KGHM Polska Miedź has secured a $500 million revolving syndicated credit facility from a consortium of international banks to support its Sierra Gorda mine in Chile. The funds will refinance existing liabilities and support further investment and operational stabilization.
KGHM, which owns 55% of Sierra Gorda, will provide a corporate guarantee of up to PLN 275 million. This financing enhances the mine's financial liquidity and strengthens KGHM’s position in global commodity markets. The Sierra Gorda mine, a joint venture with South32, is crucial to KGHM's international portfolio.
FINANCE
Aforti creditors approve arrangement
bility if not addressed soon.
Poland’s budget is overly generous at a time when the global economy is facing increasing uncertainty. Failing to rein in spending could expose the country to heightened risks, especially if inflation remains persistent.
The criticism comes as Poland continues to finance various social programs and infrastructure projects, while global economic conditions, including inflation and slowing growth, present growing challenges. Experts suggest that the government needs to adopt a more cautious approach to public finances, focusing on reducing the deficit and managing debt more effectively.
ECONOMY
Polish exports rise amid German slump
Poland's share of global exports has reached its highest level in history, despite the German recession. While around 28% of Polish exports go to Germany, Poland’s economy continues to grow independently. Recent data shows Poland’s GDP grew 1% quarteron-quarter, while Germany stagnated. Polish industry has become less reliant on Germany, with exports increasingly diversified by sector and geography. In 2023, Poland's global export share rose to 1.6%, driven by
Aforti Holding announced that its creditors have approved a restructuring arrangement, with 67% of voting creditors, representing PLN 117.2 million, in favor. Out of 629 valid votes, 523 creditors supported the arrangement, which totals PLN 175.2 million in voting power. The company has now submitted the arrangement for court approval. According to bankruptcy law, an arrangement is accepted even without a majority in all creditor groups, provided two-thirds of the total receivables are in favor, and dissenting creditors are treated no worse than in bankruptcy proceedings.
Women in Business Services:
Gender Diversity
Women represent 47.1% of the total workforce in the sector, emphasizing the industry’s efforts to balance gender representation. Key insights from the ABSL Business Services Sector in Poland 2024
Automation and AI are Changing the Landscape
21.2% of the sector’s processes are automated, with a target of 35% over the next five years.Generative AI and automation are viewed as opportunities, with 85.6% of industry managers seeing AI as a key driver of transformation.
Exports Surge: Driving Poland's Global Trade
$15 billion in trade surplus was generated by the business services sector in 2023, reinforcing Poland’s export strength in knowledge-intensive services.
Key Industry Hubs: Kraków and Warsaw Lead
Dynamic Growth of Poland's Business Services Sector
By Q1 2024, the sector employs 457,100 people, representing 7.0% of total employment in Poland, contributing 5.3% to the GDP.
22.9% growth in business services exports in 2023, reaching $36.8 billion
Rising Role of Foreign Talent
Foreigners make up 15% of the sector’s workforce, showing Poland’s global reach in talent acquisition.
The Shift from Back Office to Mid-Office Operations
50% was surpassed for the first time in the share of midoffice roles, reflecting a shift to more advanced and knowledgeintensive processes.
Talent Attraction and Retention Challenges
Both cities now have over 100,000 employees each in the business services sector, highlighting their dominance in Poland’s economy.
56.4% of firms reported difficulty in attracting and retaining talent, particularly in IT and life sciences, which are the most competitive sectors.
WBJ sat down with Peter Garré, CEO of Bopro, to discuss the company’s 40-year journey, its leadership in sustainable real estate, and its expansion into European markets. Garré highlights Bopro’s role in shaping ESG practices, its entry into Poland, and upcoming industry changes driven by EU sustainability regulations.
INTERVIEW BY BEATA SOCHA
WBJ:
“The Polish market is growing, and there’s a real demand for sustainable real estate solutions”
Bopro has been a prominent player in the real estate sector for over four decades. How has the company evolved over these 40 years?
Peter Garré: Reaching this milestone is significant for us. From the beginning, Bopro has been driven by a commitment to innovation and sustainability. The real estate market has changed dramatically over time, but our focus on building responsibly has remained constant. About 15 years ago, we made sustainability a core part of our mission, which led us to pioneer BREEAM certification across Europe. This shift has shaped not only how we operate but also how we view the future of real estate.
How has this sustainability focus influenced Bopro’s expansion, especially in European markets like France, Belgium, and Poland?
Our expansion has always been about advancing sustainability in real estate. In France and Belgium, we’ve grown by offering advisory and certification services that help property owners and developers meet ESG requirements.
Poland, with its growing economy and evolving tech sector, was a natural next step for us. The Polish market is growing, and there’s Cover Interview: Peter Garré
a real demand for sustainable real estate solutions. We’ve been working with Polish clients for years, and opening a new office in Warsaw was a logical progression. In Poland, we’ll be bridging the gap between these European directives and local implementation, ensuring that businesses here can meet the new standards while continuing to grow and thrive. With Monika Woźniak-Zawiola as our Country Manager, we’re well-positioned to deepen our engagement in Poland.
What led to the appointment of Monika Woźniak-Zawiola as Country Manager for Poland, and how do you see Bopro’s role evolving there under her leadership?
Monika brings over 25 years of experience in real estate, having overseen major projects like Złote Tarasy and Holland Park. Her expertise spans asset management and business development, and she’s passionate about ESG—values that align perfectly with Bopro’s mission.
With Poland’s market growing and demand for sustainable solutions increasing, Monika’s leadership will help us focus on portfolio performance management, ensuring long-term success for our clients.
“The financial crisis of 2007-2008 was a wake-up call. It highlighted the need for more resilient, long-term business models, and sustainability became a key part of that”
ESG has become a critical element of business strategy, especially in real estate. How does Bopro integrate ESG into its services, and what role does it play in future plans?
ESG is central to everything we do. We embed sustainability into the entire lifecycle of a property, from design and construction to operation and eventual regeneration. It’s not just about meeting regulations; it’s about creating value in the long term. We help clients reduce carbon footprints, improve energy efficiency, and enhance the overall quality of the built environment.
As more regulations come into effect—like the EU Green Deal and Corporate Sustainability Reporting Directive—our ESG approach will remain foundational to our growth, ensuring that clients meet these standards while also achieving business success.
How do you see regulatory frameworks like the EU Green Deal shaping the future of real estate, and how is Bopro preparing for these changes?
The EU Green Deal is indeed transformative. It’s pushing the real estate sector toward more sustainable practices, which we fully support. The goals of achieving climate neutrality by 2050 and decoupling economic growth from overuse of resources is ambitious but necessary. These regulations are about more than just reducing emissions; they’re about transforming the entire real estate value chain.
Bopro is well-prepared, as we’ve been incorporating ESG into our services for years. We’re helping clients navigate these changes and adapt to new regulatory requirements in all the markets we serve, including Poland.
It's clear that Bopro is deeply committed to sustainability. But breaking the so-called "circle of blame" in real estate—where stakeholders blame each other for not prioritizing sustainable buildings—remains a challenge. Do you think we’ve made progress in this area?
Yes, we’ve made significant progress. Fifteen years ago, it was common to hear developers say there was no demand for sustainable buildings, while investors claimed there wasn’t enough tenant interest, and tenants said there weren’t enough options. Today, that’s no longer the case.
The financial crisis of 2007-2008 was a wake-up call. It high-
lighted the need for more resilient, long-term business models, and sustainability became a key part of that. Investors now actively seek out sustainable projects, and tenants are more aware of the benefits, not just in terms of environmental impact but also cost savings and employee well-being. Policymakers are also stepping up with stricter regulations. So, the circle of blame is breaking, but there’s still more to be done.
Bopro is active in various sectors. Which ones are the most responsive to ESG, and where do you see more resistance?
The logistics and office development sectors are particularly responsive to ESG practices. These industries focus on long-term profitability, and they recognize the value of sustainable real estate. It’s not just about reducing emissions but also improving efficiency and worker well-being.
On the other hand, the residential and healthcare sectors have been slower to adopt these practices. Often, the upfront investment required for sustainability can be a barrier. But we’re starting to see change as more companies realize that sustainability is essential for future-proofing their assets.
With regulatory changes on the horizon in 2026, what do you see ahead for sustainable real estate?
From 2026, companies will be required to report on CO2 emissions, energy usage, and water management, among other things. Banks are already paying closer attention to ESG criteria in credit files. Companies that haven’t yet adopted sustainable practices will face challenges.
At Bopro, we’re helping clients navigate these changes with clear strategies for compliance. We’re also investing in digitization and standardization, which will make large-scale renovations and sustainability upgrades more affordable and efficient.
You’ve pointed out that the current rate of real estate sustainability, with only a 1.5-2% annual renovation rate, is too slow. What needs to change?
At this pace, it will be impossible to meet sustainability targets by 2050. We need more resources, but even more importantly, we need to reduce some regulatory burdens. Instead of overregulation, we should be encouraging higher ambitions with incentives.
Company Profile: Bopro
Bopro, a Belgian company founded in 1984 by Peter Garré, has built a strong reputation over four decades as a leader in sustainable real estate projects. Initially focusing on project management, Bopro soon recognized the challenges in delivering on real estate objectives despite good intentions from designers, contractors, and project initiators. This realization led the company to emphasize efficiency and quality improvement in its services.
By the 1990s, Bopro pioneered a unique approach to project management, incorporating sustainability into its core strategy. This focus intensified in the 2000s, as Bopro fully integrated sustainability and transition thinking into its business model. Recognizing that many construction projects were slow to adopt sustainable practices, Bopro forms partnerships to drive sustainability.
Unlike traditional real estate developers, Bopro is neither a designer nor a contractor. Instead, it works as a project manager, with a team of 100 employees and freelancers, to manage and develop real estate projects. The company’s operations span both Belgium and other European countries, with a focus on certifying and promoting sustainable practices in the built environment. Bopro's office in Ghent, a renovated historic building, has been CO2 neutral for 15 years and holds the BREEAM Excellence label, a testament to the company's long-standing commitment to sustainability.
The construction and usage of real estate contribute to about one-third of global CO2 emissions, positioning sustainability as an essential goal for the sector. Bopro emphasizes that sustainable real estate not only addresses environmental concerns but also supports long-term profitability. The company advocates for smart urban projects that integrate mobility solutions and foster communitybased approaches to sustainability.
Bopro works primarily in a B2B environment, focusing on making companies’ real estate assets more sustainable. The company has found that awareness of sustainability is highest in logistics and office developments, while residential and healthcare sectors are still lagging behind. However, Bopro recognizes that adopting a sustainability strategy is just the first step. It involves significant work to align processes, define key performance indicators (KPIs), and implement improvement plans.
A significant part of Bopro’s value lies in overcoming the common barriers to real estate projects, such as budget overruns, quality control, and time management. The company focuses on total cost of ownership, ensuring that the entire lifecycle of a project is considered, not just initial costs. This approach helps ensure that sustainable projects remain economically viable, especially compared to traditional project management methods.
Bopro introduced the BREEAM standard to the Belgian market, becoming a leader in sustainability assessments. Despite regulatory complexities in Belgium, where regions have different sustainability measurement methods, Bopro continues to promote high standards in the built environment.
Looking to the future, Bopro acknowledges the slow pace of real estate sustainability, with an annual renovation rate of just 1.5 to 2%. The company calls for more resources, deregulation, and collaboration to accelerate sustainable renovations. As the real estate sector faces increasing regulatory pressures, particularly regarding CO2 and energy reporting, Bopro helps companies navigate these challenges while aiming to expand its footprint across Europe. With branches in Belgium, France, and now Poland, they can serve their EU clients even better.
WARSAW
A New Era of Flexibility & Collaboration
Magdalena Domagała, Real Estate and Project Manager of Dream Space Warsaw, and Mariusz Sosna, ad interim Head of ING Hubs Poland, take us inside the new office in Warsaw. They discuss how the flex office model, sustainability, and a nod to Warsaw's rich history will shape the way teams collaborate and grow in this innovative workspace.
“
Different spaces for different needs, all equipped with top-shelf devices
- Magdalena Domagała
What can employees expect in the new office in Warsaw?
Magdalena Domagała (Real Estate and Project Manager of Dream Space Warsaw): More than 7,000 m2 of usable space is waiting for us. The new office will be a 9-story building with three floors dedicated to us. We will also have access to a patio and a new Gravity Point with over 1,000 m2 of space. It will be a place to gather and collaborate. It addition to rooms for our daily work, we will have access to wellbeing rooms, fun rooms or even silent and chill-out spaces. All of this reflecting our ING office style.
Will the new office change anything in the way people work?
Mariusz Sosna (ad interim Head of ING Hubs Poland): Not necessarily, because we have been operating with a flex approach for some time. Our intention at ING Hubs Poland is to bring the teams together as we continue working in a hybrid mode, in a flex office model. We need to pay more attention to simple things like booking a desk or leaving it empty. Just like you’d do at any rented coworking space in the city. The time of “owning” the same desk, every day for years, is gone. Flex office is here to stay.
Back in the middle of the pandemic, our Real Estate team had been working on the Dream Space Katowice project. They gained a lot of experience and feedback from our employees, and did a great job incorporating all that knowledge, while designing the Dream Space Warsaw. To be very honest, when opening the new office in Katowice, in 2021, we were experimenting with new spaces, and a flex mode setup. It takes time to get used, to learn a new set of habits, but we did it. We all understood that, and we see how we have all changed during these past four years.
Above all, we need to come together – to celebrate, build new relationships, share, learn and have some fun. I am truly happy the new office will create this opportunity.
How is the flex approach reflected in the way you have designed the office?
Magdalena Domagała: We have designed plenty of areas to suit different needs. Places where teams can sit together with comfortable furniture, spend time in silence – focusing, collaborate around a big table, sit at a desk in an open space or training room. And of course we provide great coffee or tea in well-equipped kitchens. These are a must. Different spaces are for different needs, all equipped with top shelf devices.
With a flex office we bring people together in a different way. The number of workstations in the new office will not cover 100% of the employees, because that model is history. We offer them all the necessary spaces and devices they can make use of and enjoy while working.
Our office projects are called Dream Spaces – both in Katowice and in Warsaw. We truly believe this is what we are creating for all our employees.
Sustainability is part of ING’s strategy, how is it reflected in your new office in Warsaw?
Mariusz Sosna: Both the building and the space occupied by our company will be equipped with a range of environmentally friendly solutions. We ensure accessibility for people with different needs and take care of the well-being of people at the same time. Together with the building developer, we are working towards obtaining independent certificates confirming these features.
It is a big deal for ING Hubs Poland—we take sustainable development (ESG) seriously. Our office design enables responsible use of resources and reducing the carbon footprint, which has a beneficial impact on the health and well-being of our employees. Access to daylight, air filters, non–toxic certified finishing materials, plants in the office, all of it and more are planned for spring 2025.
How is the social aspect of community building being worked out in Warsaw? From what we know in Katowice the office is open for meetups, meetings with students or business partners.
Magdalena Domagała: The ground floor will serve as our spacious gather place for both work and free time. We call it the Gravity Point. This will be the same design as Dream Space Katowice. We will have some conference rooms, a space to relax and even pieces of art. Overall, it will be a very large conference space open to all kinds of visitors. We truly hope our new office will be a go-to place for local communities.
The entire building has been designed for flexible work. With almost 30 conference rooms, together with a huge auditorium, we will be able to work both independently and in groups. Some of the rooms will have movable walls so we will be able to arrange the spaces to meet our needs.
The Dream Space Warsaw is located at the junction of Pańska and Miedziana streets. A prestigious area, very convenient for commuting. It is also a historical place in Warsaw. Do you plan to reflect this in your new office?
Mariusz Sosna: Dom Słowa Polskiego (House of the Polish Word)-–because this is what you are referring to—was here for over 70 years. And yes, we want to respect the history of this special place by incorporating elements related to “words” in the design and even in the choice of fabrics and materials. But we also want to use this occasion to talk about the power of language itself, the culture, the impact of the way we communicate. At ING Hubs Poland we use English for our official communication, and for most of us it is not a mother tongue. Therefore, the idea of broadening our horizons through language itself seems to be an interesting narrative.
- Mariusz Sosna “
Flex office is here to stay. The times of 'owning' a desk are gone
BUILDING A MODERN FUTURE: HOW WARSAW BALANCES DEVELOPMENT WITH CULTURAL HERITAGE
Secretary of the city of Warsaw, Maciej Fijałkowski oversees the European Funds and Development Policy Office, IT Office, Legal Office, and Economic Development Office. Warsaw, rebuilt after World War II, blends historical preservation with modern development. Projects like the metro expansion and New Center enhance connectivity, while cultural investments strengthen its identity, making Warsaw a dynamic, green urban center.
Interview by Morten Lindholm
Maciej Fijałkowski: Let me start off with a reflection about Warsaw. Warsaw's story is one of remarkable resilience and transformation. Virtually erased during World War II, with over 99% decrease of inhabitants, Warsaw was rebuilt not only to its former glory but also in a new and reimagined way. This incredible transformation sets it apart from many other cities with similar histories. Despite the devastation, Warsaw has grown from its post-war state, from what once resembling a village, into a modern capital. The city's strength lies in its ability to balance forward-thinking development while
honoring its past. Although not all of the post-war projects were perfect, many of them were designed with a focus on human needs and community spirit. Over the years, Warsaw has adapted, innovated, and progressed, by building on its unique heritage. Even with recent challenges, the city remains committed to moving forward, demonstrating a rare combination of flexibility and resilience.
ML: Warsaw is on a path to further its dynamic, sustainable development. Could you elaborate on the key projects currently underway that are driving this sustainability agenda, and how these projects align with the city's long-term environmental goals?
Over the years, Warsaw has adapted, innovated, and progressed, continuing to build on its unique heritage
Warsaw is focusing on both large-scale and smaller projects to drive sustainable development. Some of the major undertakings include finishing some fairly significant infrastructure projects, like the underground water reservoirs to manage heavy rainfall. This project is crucial given the increasing frequency of extreme weather. While these projects are costly and not always visible, they are vital to the city’s resilience. At the same time, the city invests in smaller, less obvious projects, all aimed at sustainability.
Warsaw is also modernizing public utilities, schools, and buildings to meet ESG standards. Additionally, investments in greener public transport, and a reduction in carbon emissions from city heating systems (mainly through
investments in reducing outdated solid fuel or coal-fired furnaces), underscore its commitment to sustainability, with improvements already noticeable in the city's air quality. The city works with partners to encourage similar steps, emphasizing long-term environmental responsibility.
The New Center of Warsaw project is a significant undertaking aimed at transforming the heart of the city. We have already seen some significant changes. What are the plans for the future?
The New Center of Warsaw project aims to reshape the city center by balancing the needs of various groups, including pedestrians, cyclists, and public transport users. Historically the city center was dominated by car traffic, but is now evolving into a more accessi-
Clockwise from the left: Złota Street, western part of Chmielna, Plac Centralnyvisualizations
Historically the city center was dominated by car traffic, but is now evolving into a more accessible and sustainable space
2.3 million, this is thanks in part to its growing appeal to international talent as well as its increasing attractiveness. To support this influx, the city is continuously improving its infrastructure and public services. With modern amenities, a high quality of life, and a vibrant job market, Warsaw has become a highly desirable place to live and work, attracting both talent and investment.
Projects like the Sinfonia Varsovia Center and the new elementary school on Konstruktorska Street reflect Warsaw's investment in cultural and educational infrastructure. How do these projects fit into the broader vision for the city’s development?
The Sinfonia Varsovia Center, and the new elementary school on Konstruktorska Street, are key examples of Warsaw’s commitment to the development of cultural and educational infrastructure.
ble and sustainable space. Significant enhancements include the addition of almost 800 km of new bike lanes and expanded public spaces, featuring high-quality infrastructure designed to meet the needs of modern users. The city is also investing in revitalizing key squares and corridors, such as Plac Defilad, now referred to as the new Plac Centralny, as well as Plac Powstańców, Złota and Zgoda streets, Chmielna and Bracka streets, and the pedestrian-bicycle bridge completed this year. Additionally, there are private-public partnerships (PPP), like the electric vehicle initiatives. By modernizing our central railway connections, we will further enhance Warsaw’s infrastructure, positioning it as a more connected and vibrant urban center.
The construction of Metro lines 3 and 4 is a major infrastructure project. How will the expansion of the metro network improve connectivity within Warsaw, and what are the expected benefits for residents and commuters?
The expansion builds on the success of previous metro projects, by improving connectivity and the daily commute. Line 3 is expected to begin construction within the next few
years and Line 4 is already in the early planning stages. The clear benefits, with the Warsaw metro, is that it’s the most efficient mode of transport, capable of carrying large volumes of passengers and providing a more reliable service than other forms of transit, especially buses. The new metro lines will shorten travel times, boost the transportation system's capacity, reliability, and comfort, and support a more resilient and modern urban transit network for Warsaw's expanding population.
Warsaw is recognized for its ability to attract talent, which in turn attracts investment. What specific strategies is the city employing to continue attracting and retaining top talent?
Warsaw had expected an increase of roughly 200,000 residents within a 30-year period, but this surge occurred in just 2 months following the outbreak of the Ukraine war. The city is still adapting to effectively manage this growth. For example, many people are relocating to the surrounding metropolitan areas, easing pressure on housing within the city itself.
Warsaw officially has 1.8 million inhabitants, but the actual number of people living and “using” the city is closer to 2.2 or
Some of these investments are of the higher metropolitan functions, which enhance the city's identity and appeal to residents and visitors alike, improving the quality of life through greater access to arts and culture. The investment in this school project exemplifies a successful PPP, highlighting the city’s commitment to addressing the educational needs of its growing population. Such projects enhance the city’s social fabric and emphasize its focus on sustainable, inclusive growth.
With the ongoing development of new tram lines and the completion of the pedestrian-bicycle bridge, are more significant changes to Warsaw's landscape and green mobility infrastructure expected?
Warsaw continues to prioritize its green mobility infrastructure with its projects. We are progressing with additional tram sections, such as the one near the Western Station, which will include the first underground rail and tram station. This project will create a highly efficient transport hub, linking the city’s tramways and metropolitan rail connections.
As Warsaw modernizes its infrastructure, more initiatives like this are expected in the coming years, improving connectivity and promoting sustainable transportation. The city is also constantly reviewing its priorities to ensure future projects align with evolving needs and available resources.
Above: M3 new Metro station on Warszawa Wschodnia train station - visualization
Clockwise from above: Pole Mokotowskie park, Pedestrian and bicycle bridge, Tram to the Western Railway Station - Bitwy Warszawskiej 1920 Street, M3 new Metro station, Vistula Boulevards and the hall inside Sinfonia Varsovia - photos and visualizations
Poland has evolved from a low-cost labor hub for shared services to a strategic center for advanced, knowledge-based processes. Rising wages have prompted companies to focus on Poland's skilled workforce, which excels in problem-solving and data management. With a shift towards process design and end-to-end management, Poland is positioned as a leader in the shared services industry, driving innovation and efficiency on a global scale.
POLAND SHARED SERVICES INDUSTRY: A STRATEGIC SHIFT TOWARDS EXPERTISE AND ADVANCED PROCESSES
BY ROBERT GOLNIK
When international companies first set their sights on Poland as a hub for shared services, the decision was simple: cost. As a region where labor was significantly cheaper than in Western Europe or the United States, Poland quickly became an attractive destination for offshoring repetitive, transactional processes, while being very close geographically and culturally to their neighbors. The charm of low costs in the early 2000s brought a wave of global corporations eager to take advantage of the economic benefits, establishing a shared services presence in cities like Kraków, Wroclaw, and Warsaw.
However, as the industry evolved, so did Poland's role. The country, once synonymous with inexpensive labor, is now a market in transition. Basic, repetitive tasks once dominated the shared services sector, but in the last decade, they’ve been steadily replaced by more complex, knowledge-based processes. Inter-
national companies that initially outsourced their simple administrative work to Poland are now entrusting the country with increasingly advanced and specialized roles. It is related to rising technology and general sector experience that have been proven over the time.
The shift in Poland Shared Services industry is driven by a confluence of factors. While cost remains the number one reason businesses consider offshoring processes, rising wages in Poland have narrowed the gap with Western Europe, forcing companies to rethink their strategies. Yet, rather than deter growth, the country’s unique combination of talents, skills, and experience has bolstered its position as a global leader in shared services.
Access to Skilled Talent: Poland’s Competitive Edge
With wages rising, the talent pool in Poland has emerged as one of the key differentiators that keeps multinational companies commit-
ted to the country. Since joining the European Union in 2004, Poland has rapidly developed an educated, multilingual workforce, adept at handling more sophisticated processes. As shared services centers have matured, their scope has expanded beyond basic data entry or routine tasks to encompass roles that require high levels of expertise, problem-solving, and cross-functional leadership.
The significance of a skilled workforce is highlighted in the SSON Research & Analytics "State of the Shared Services & Outsourcing Industry Global Market Report 2024," which identifies the top three skills prioritized by organizations today: problem-solving, process design and improvement, and data management and analytics. These are the very capabilities that Poland excels in. Shared Services Centers in the country are no longer limited to back-office functions but are increasingly involved in creating value through strategic initiatives.
Companies now depend on Polish profes-
sionals to re-engineer and optimize processes, leveraging data analytics and advanced problem-solving techniques to drive efficiency and innovation. Poland has transitioned from being a cost center to a value creator, with shared services centers acting as innovation hubs for their global operations.
The Emergence of Process-onDemand Models
As the industry moves toward a more processon-demand model, Poland has shown remarkable adaptability. Shared Services Organizations are shifting away from transactional work to focus on designing and setting global process standards. Poland, with its growing pool of industry experts, is well-positioned to meet this demand.
A key aspect of this shift is the emergence of global process owners—professionals who oversee end-to-end processes across organizational silos, geographies, and business units. These roles are highly specialized and require a deep understanding of both the business and the broader market environment. It’s an area where Poland stands out, offering not just the talent but the capacity to manage large-scale operations in a way that smaller markets simply cannot match.
This evolution in the shared services model has given Poland a unique position to support businesses worldwide. The country’s ability to handle complex, high-value processes, combined with its access to an experienced workforce, sets it apart from other locations. This is especially important as the sector continues to evolve, with more companies seeking process design expertise and end-to-end ownership, elements critical to remaining competitive in today’s global economy.
A Data-Driven Future
To underscore this transition, the chart based on a statistical model created using ABSL data, offers insight into Poland’s Shared Services landscape from 2017 to 2024. It shows a clear progression, where knowledge-intensive processes began surpassing transactional tasks in 2020, marking a pivotal shift in the sector. Prior to this, companies largely utilized Poland for simple, repetitive processes. However, by 2024, the projected workforce in the shared services industry is expected to reach 457,100 full-time equivalents, with 265,255 of those working in knowledge-intensive processes, compared to 191,845 in transactional tasks.
The data highlights the increasing importance of advanced processes in Poland’s Shared Services industry. While the country once served as a cost-saving solution for routine work, it now provides industry experts who design and manage global processes. These experts ensure a smooth operation across multiple business units and geographical boundaries, a capacity few other countries can offer. This expertise is a significant reason why Poland remains a top choice for businesses looking to relocate their operations, despite the rising costs.
Conclusion: Poland as a Strategic Hub for the Future
As Poland continues to close the wage gap with Western Europe, its shared services industry is no longer driven solely by cost, but by the access to a skilled and experienced talent pool. With expertise in problem-solving, process design, and data management, Poland offers a unique value proposition that goes beyond traditional shared services.
In a world where businesses are increasingly focused on value creation and innovation, Poland has positioned itself as a strategic hub for advanced processes. The country’s shared services centers, once seen as low-cost alternatives for simple tasks, are now driving critical business functions globally, setting standards for the industry and delivering solutions that go far beyond their original scope. This evolution underscores Poland’s pivotal role in the future of shared services, as it continues to transition from a cost-effective option to a center of expertise and innovation.
Robert is an accomplished development leader in the shared services industry, with a focus on it data & analytics platforms. With nearly 15 years of experience, he has a deep understanding of how shared service organizations influence business decisions. Robert excels in leading large agile teams and translating business requirements into technical solutions that drive value and achieve strategic goals. His expertise encompasses fp&a, strategic performance management, and digital transformation initiatives. Robert holds a Ph.D. In management and an executive mba, combining technical expertise with strategic leadership.
FLOODS & OPPORTUNITIES
The 2024 flood in Poland, exacerbated by climate change, caused significant damage, particularly in vulnerable regions like Kłodzko. While flood defenses failed in some areas, major cities were largely spared. Damages are estimated between 0.3-0.7% of GDP (PLN 11-25 billion). Poland is receiving EU aid, and reconstruction efforts may boost GDP growth. The flood's economic impact is expected to be less severe than the 1997 disaster, with limited inflationary effects and minimal fiscal burden. International assistance and insurance support have been mobilized, with focus on infrastructure resilience.
BY SEAN REYNAUD
From July to early September of this year we reported on the historically low levels of the Vistula and Oder rivers, as a severe drought gripped the region. Thirteen provinces faced crop losses due to drought, including the Masovian Lowland, the Podlasie Lowland and Polesie. Some farmers anticipated a 20% lower yield because of the drought.
Water levels were so low, in Warsaw, that hidden treasures began to emerge, including a rail wagon and fragments of the Villa Regia, a once-grand 17th century palace that stood on the site of today’s University of Warsaw campus.
IF YOU DON’T LIKE THE WEATHER . . .
In 1909, James A. Cruikshank famously remarked about Chicago's weather, "If you don’t like the weather, wait a minute." The Windy City’s climate had always been unpredictable, but what Cruikshank couldn't have known was how much more volatile it would become. Rising CO2 levels and the unprecedented pace of atmospheric changes driven by climate change have since intensified these fluctuations, creating an unprecedented (in historic terms) global challenge.
Poland saw the effects of climate change in 1997 with the “Millennium Flood,” an event that killed 56, forced the evacuation of over 150,000 and cost an estimated USD 3.5 billion, impacting agriculture, industry, and infrastructure. But that was the old Poland, the Poland pulling itself out of its PRL days. It was a Poland still developing its infrastructure.The Poland of 2024 should, in theory, have been much better prepared for the flood of 2024.
According to architekturalbiznes.pl, “The flood control infrastructure did not hold up. The levees failed in several places, the retention reservoir in Paczków burst, and the culvert between Topola and Kozielno reservoirs was destroyed.”
However, this was not the case everywhere. According to a Wrocław facebook page, local authorities said, “The urban system withstood and absorbed the main waves of floods that were hitting Lower Silesia and neighboring regions for a week.”
The Polish government has implemented large-scale flood protection initiatives, funded by international loans and EU support, including the construction of retention reservoirs and modernization of the Wrocław Water Junction following the disaster of ’97. Poland, used to flooding, attempted several mitigating methods for controlling what is a regular occurrence.
YET, HERE WE ARE.
Some of regions, particularly Klodzko, remain vulnerable because of their geography. Poland’s plan to force nature to obey seems not to have worked. In contrast, the Netherlands’ approach has been one of making “Room for the River,” by integrating natural floodplain management and nature-based solutions in conjunction with its technical infrastructure.
What hit Poland, according to wodnesprawy.pl, on 13 September 2024, was something called a Genoa low, a low-pressure system resulting from the clash of the Mediterranean warm air and Alpine cold fronts. By the time it was over, towns like Kłodzko saw river levels rise to 6.84 meters, far above.
By 18 September soldiers, emergency workers and volunteers battled through the night to reinforce Wrocław. Army helicopters and between 10 and 16 thousand soldiers were sent to the worst-hit areas, according to the Guardian, filling bags and preparing for the worst. Soldiers evacuated people and drones monitored the situation as it developed.
In the aftermath of the floods, damage assessments have estimated costs exceeding EUR 1.5 billion across affected areas. Some experts suggest the impact could be even higher when considering infrastructure and productivity losses. According to TVP World, Storm Boris could result in losses close to 1% of Poland's economic output, potentially nearing USD 9 billion, drawing parallels to the severe floods of 2010, which incurred damages of around $4-5 billion—approximately 1% of the GDP at that time. Given Poland's GDP of $0.811 trillion in 2023, the financial implications for 2024 could be substantial.
The town of Kłodzko reported damages of about 100 million zlotys ($23 million), and while major motorways remain intact, local roads have faced significant disruptions, which may impact inflation and agricultural supply chains.
According to meble.pl, the Schattdecor factory in Głuchołazy has faced a complete shutdown due to severe flooding that devastated buildings and infrastructure in the area. The floods significantly impacted the plant, which produces finish foils and varnishes, causing water to infiltrate the production hall, warehouse, and offices, though fortunately, all employees are safe. Additionally, the roads leading to the factory have been closed, further complicating access and recovery efforts.
WNP reported that the flood devastated Prudnik, causing widespread damage, power outages, and disabling the sewage treatment plant. Though the Jarnołtówek dam posed a significant risk, the situation has stabilized as water levels recede. Two local factories, Pionier and Henniges Automotive, were severely damaged by the flood. Nearby Czechowice-Dziedzice also experienced flooding, but key industrial sites like the Unimot fuel
“
If you see German soldiers, please do no panic. They are here to help,” a deadpan Donald Tusk said
base and Kontakt-Simon avoided serious harm. Despite the challenges, major industrial operations, including KGHM Polska Miedź’s Żelazny Most Mining Waste Disposal Facility, remain secure, underscoring the resilience of the region's critical infrastructure.
TAKING A DIFFERENT KIND OF RISK
Others, looking to take advantage of the situation, were far less helpful. TVPWorld reported that some were intent on making as much of the situation as they could, but at the expense of others. Internet influencer Damian Zawrotniak identified an online seller, who sold industrial dehumidifiers, raising the price from PLN 1,599 to PLN 2,599 overnight. “Wanting to get rich on the back of flood victims is shocking and impermissible,” said Tomasz Chróstny, head of the Polish competition and consumer protection office. Furthermore, Chróstny said, “we will react to every attempt to break the law and exploit the situation by dishonest businesses.” If pricegouging continues the government has, in a worst-case scenario, the option to assume control over the supply and distribution of certain goods.
POLAND ISN’T ALONE
An emergency fund was set up, one that the Polish prime minister, Donald Tusk, said would perhaps grow after a visit from the head of the EC, Ursula von der Leyen. In the end, the head of the EC made EUR 10 billion available from the EU cohesion fund with a promise of more from the EU’s Solidarity Fund in the future.
According to the Polish Prime Minister, “I have turned to the finance minister and for now we have secured financial reserves for the needs of locations and people affected by the flooding. At this point we have one billion zlotys. The finance minister has assured me, in line with our expectations, that there will be no shortage of
means for the direct and the long-term aid," he said. Polsat News would later report that EUR five billion had been secured from the EU.
HELP OF A DIFFERENT KIND WAS ON ITS WAY
American troops were already providing support to flood-affected communities, according to Politico. Turkey also extended a helping hand. Others, within the EU, were on their way as well.“If you see German soldiers, please do no panic. They are here to help,” a deadpan Donald Tusk said.
Polskie Radio reported that the Polish Chamber of Insurance (PIU) has streamlined the claims process for those impacted by the recent floods, providing helplines and financial support. Adjusters were dispatched to flood-affected areas to expedite assistance. PZU is facing a 10% drop in profit due to weather-related claims, reports Bloomberg citing data from the Ipopema brokerage.
JBA Risk Management estimates that river flooding costs EUR 7.8 billion annually, a figure expected to rise as economic development continues in high flood-risk areas. In interviews with ING, featured in WBJ's AugustSeptember 2024 issue, banks have emphasized incorporating environmental risk assessments into their loan approval processes to account for increasing flood hazards.
Mario De Cicco, vice president of global insurance and pension ratings at Morningstar DBRS, told Reuters that insured losses are expected to be higher in the Czech Republic, due in part to insurance being more prevalent than in Poland. Besides local insurance firms, big Austrian insurers, especially those in Poland and Czech Republic, are expected to be those most affected. Severe weather has caused the biggest losses for insurers in recent years.
Some factories and stores affected by the floods shut down. Short-term effects include negative impacts on industry and tourism, and potential inflation due to crop damage. However, in the long term, restoration work will boost the construction sector and stimulate investment in modern technology and resilient infrastructure, contributing positively to GDP growth.
According to ING, the economic toll of the 2024 flood in Poland is expected to be far less severe than the 1997 disaster. The flood largely spared major cities and industrial areas, with damages estimated between 0.30.7% of GDP (PLN 11-25 billion). While the fiscal burden is expected to be limited, the government may provide more aid compared to past floods, supported by up to €5 billion in EU funds. Relief measures include financial aid for households, companies, and farmers. Analysts predict minimal inflation impact, but GDP could receive a boost from reconstruction efforts, potentially adding 0.2-0.35% to 2024 GDP growth. The National Bank of Poland's policy is unlikely to change due to the flood.
LOKALE IMMOBILIA
Echo Investment's growth in 2024
Echo Investment Group reported asset values exceeding PLN 6.5 billion and cash reserves of PLN 523 million as of June 2024. In H1 2024, the group sold 882 apartments under the Archicom brand, a 10% increase year-over-year. The company aims to sell 2,600 apartments by the end of the year. The Resi4Rent platform grew to 4,400 apartments, with plans to expand to 6,200 by year-end. Echo also launched StudentSpace, with two Krakow dormitory projects. In Warsaw, the Towarowa 22 project is 65% leased. The company also finalized green refinancing of Galeria Młociny, with its turnover rising 9% in Q2 2024. Echo Investment has been listed on the Warsaw Stock Exchange since 1996.
Find more daily at wbj.pl/real-estate
RESIDENTIAL
Lokum Deweloper revises sales forecast
Lokum Deweloper now expects to sell 200 apartments this year, down from the initial estimate of 350, according to CEO Bartosz Kuźniar. Sales for the first half of 2024 totaled 117 units—94 in Wrocław and 23 in Kraków. Kuźniar attributed the lower sales forecast to high interest rates and the absence of support programs like "Kredyt na start."
Sales Director Michał Witkowski added that around 250 apartments could be recognized, including 190 identified in the first half and 63 under preliminary agreements. Kuźniar warned that the reduced sales would impact financial results, with no new constructions expected to offset the shortfall.
RESIDENTIAL
Rent prices growing fast in Poland, up 66.5 % in a decade
Katowice remains Poland's fifth-largest office market with over 751,000 sq. m of space. Currently, 59,000 sq. m is under construction, the highest among regional cities. Despite no new deliveries in the first half of 2024, demand rose by 18% in Q2, with 14,000 sq. m leased.
However, the vacancy rate edged up to 20.8%. Major projects, including Grundmanna Office Park (21,000 sq. m) and Eco City Katowice (18,000 sq. m), are set to add over 36,000 sq. m by year's end. Rents remain stable at EUR 9-14.50/sq. m per month.
New leases expand Varso Place offerings
HB Reavis has signed over 1,000 sq. m. of new lease agreements at Varso Place in Warsaw. The complex, home to the EU's tallest skyscraper, Varso Tower, will soon offer new dining options, including Palms Burger, Tai Din, and Yashi Sushi, led by Dominik Tomczykowski. The Wybitnie Nieznani restaurant, created by Adam Fabisiak, will also debut. Varso Place’s food and service offerings will grow with the Semifreddo confectionery, Vino&Vino store, and a range of other services like Rossmann, Żabka, and a diagnostic center. The complex will soon feature a viewing terrace, bar, and more retail and service options, making it a vibrant hub for office workers and residents.
New office complex planned for Warsaw
Westminster Polska plans to develop an office and service complex at Aleje Jerozolimskie 195 in Warsaw’s Włochy district. Designed by 77 Studio architektury, the project will feature three buildings with a total usable area of 29,000 square meters and an open courtyard. The design aims to harmonize with the surrounding architecture while creating a welcoming public space.
The courtyard will include restaurants, cafes, and service points, addressing a common issue in Warsaw's outer districts: a lack of local, vibrant spaces. Westminster Polska is currently seeking a building permit for the project.
POLISH COMMERCIAL REAL ESTATE: SIGNS OF RECOVERY WITH RETAIL LEADING THE CHARGE
Commentary from Mateusz Skubiszewski, Senior Director, Head of Capital Markets at BNP Paribas Real Estate Poland, highlights growing investor interest in retail assets and anticipates a rebound in logistics and industrial sectors by 2025. Despite ongoing challenges, the evolving Private Rented Sector presents new growth opportunities.
Although the investment volume in Q2 2024 reached EUR 1.34 billion – the highest level since the beginning of the year – it is important to note that this result was largely inflated by the acquisition of CPI shares by Sona Asset Management, which accounted for 40% of the total volume. Excluding this one-off transaction, the result remains solid, but a major shift in investor sentiment, necessary to drive substantially higher transaction volumes, has yet to occur.
The European Central Bank's decision to cut interest rates by 0.25 pp. in June 2024, followed by another reduction in September 2024, is improving the outlook for the end of 2024 and into 2025. Among the various segments of the commercial real estate market, retail assets continue to attract investor interest. This is driven by growing consumption and a noticeable increase in retail sales compared to the previous year. The largest transaction in the retail sector was the acquisition of Cromwell's property portfolio by Star Capital Finance, which also marked the largest asset deal of Q2.
Looking ahead, further shopping center transactions are expected, although investors are also likely to focus on core+ and value-add investments. The prime office market is not expected to see a significant increase in activity until late 2024. The most probable return to prime market transactions is expected in logistic and industrial sector starting from Q4 2024 and Q1 2025. An increased interest of investors is also visible for investment sale and leaseback transactions concerning convenience retail and industrial properties.
A niche sector with growth potential is the Private Rented Sector (PRS), although it remains an evolving market in Poland. While there has been increasing interest in PRS, it is far from being a stable investment product. One notable challenge is the currency mismatch, as investments in this sector are typically denominated in foreign currencies, while rents are collected in PLN. There have been attempts to denominate rents in euros, but it remains uncertain how widespread this practice can become. PRS still has considerable room for development before it can become an attractive product for institutional investors.
SINCE THE BEGINNING OF 2024, the outlook for the Polish economy, and consequently for the commercial real estate market, has shown signs of improvement. However, significant challenges remain, largely due to high interest rates in PLN and geopolitical instability. EUR rates have already started to decrease, which should stimulate investments into commercial real estate.
Despite signs of recovery, the commercial real estate market in Poland continues to face challenges, such as high inflation, interest rates, and geopolitical uncertainty. Investors are focusing on more flexible segments like retail and core+ offices, while development of the PRS market may open new investment opportunities in the future. Nevertheless, a strategic shift in real estate investments is anticipated, driven by continued interest rate reductions. The last decrease of 25 bps from 18th of September confirms this trend. This trend will be the major driver for further growth in real estate investments across Europe.
Bruno Lambrecht, General Director of CFE Poland
CFE: A SOLID RESPONSE TO AN EVOLVING MARKET
As Poland’s economy recovers, CFE navigates challenges like high interest rates and geopolitical risks. With eurozone rate cuts boosting investments, retail, logistics, and industrial sectors offer growth potential, positioning CFE at the forefront of an evolving real estate market, led by Bruno Lambrecht, General Director of CFE Poland.
THE PAST FEW MONTHS have been a period of dynamic growth and intense activity for CFE. In 2024, the company has gained significant traction due to a revival in the residential sector, which has resulted in numerous projects across the country. CFE continues to collaborate with various investors, including BPI, a company that is part of the CFE Group.
One of the flagship projects currently being developed by BPI is Chmielna Duo – a premium-class, modern investment located in the heart of Warsaw. This project consists of two residential buildings with a total of 243 apartments and commercial spaces on the ground floor. A key feature is the underground parking facility, which is a crucial element in such a central location. CFE is also prioritizing the residents’ comfort by planning a green terrace on the roof of one of the buildings, providing a unique space for relaxation.
CFE is also very active in the logistic sector, where it continues to achieve significant success. In 2024, the company completed a low carbon large-scale logistics center featuring a wooden roof structure in Nowy Konik. This project stands out for its innovative approach to sustainable construction – instead of using standard steel structures, CFE opted for wooden construction, significantly reducing the carbon footprint of the investment. The entire hall is heated using heat pumps, further enhancing its environmental credentials. The investor for this project was GLP Polska and its completion marks an important step towards more sustainable construction practices in Poland.
2024 also brought major achievements in the retail sector. CFE completed the construction of three modern retail parks, located in Kraków, Gorzów Wielkopolski and Jastrzębie-Zdrój. Each of these facilities has been designed with customer convenience and operational efficiency for tenants in mind. These investments demonstrate that the company is successfully executing a wide range of projects, responding to the growing market demand.
One of the key plans for 2025 is the construction of a new Majaland amusement park in southern Poland. This will be another investment in the successful series, following the completion of three other Majaland parks, which have attracted thousands of families.
In addition of these market trends, there is a global trend pushed by EU legislation, towards sustainable construction projects. CFE has therefor introduced the "changing for good" strategy that places a strong emphasis on the construction of innovative and sustainable projects. With our recently established knowledge center, we are now equipped to provide clients with expert guidance and advice during the early stages of their projects, facilitating the value engineering towards economical and sustainable solutions. Our capabilities extend to advising on the transformation of existing assets to meet new sustainable standards, particularly in the logistics, industrial, retail, and office sectors.
LOKALE IMMOBILIA CEEQA 2025
BIG DEAL
Richard Hallward, founder and chairman of CEEQA, shares what’s new at CEEQA 2025.
Everyone is closely watching how investors will approach the market this autumn, looking for any signs of an uptick in sentiment and activity. So far, we’ve already seen considerably more action than last year. If there are subtle signs of recovery, the easing of interest rates should help it along. Fingers crossed.
TRANSACTION AWARDS
Exciting developments are in store for the 2025 edition of the awards, including the introduction of two new categories: Single Asset Deal of the Year and Portfolio Deal of the Year.
Some might say this is long overdue. In the past, we’ve avoided deal-based awards, and for good reason: it’s not always clear at the time whether a deal was beneficial for the buyer, the seller, or just reflective of market conditions, regardless of size or sophistication.
Most serious real estate professionals can recognize an exciting deal when they see one. These are the market-defining or moodsetting transactions that grab industry-wide attention. Size is, of course, a key factor, but so are yield, sophistication, and the transformative impact of the deal—all elements that can vary in significance over time.
We are currently engaging with investors across the CEE and SEE markets to gather their insights on what criteria judges should consider to ensure these categories carry real, lasting value for the market and its participants. If you have thoughts to contribute on this topic, we welcome you to get in touch.
A total of 26 awards will be presented in 2025, recognizing the best buildings, companies, and individuals across the sector.
ON TRACK
Other preparations for the 2025 edition of CEEQA are well underway. The jury panel is being recruited and will be announced in November, with award entries opening in January and closing in early March. The CEEQA Gala, the industry’s main awards event, is scheduled for May 21st—be sure to save the date!
We look forward to making more announcements throughout the autumn as we gear up for another successful year, and we can’t wait to welcome the industry next spring. In the meantime, we wish everyone a smooth journey to year-end.
Béranger Dumont, General Manager at BPI Real Estate Poland
ECO-FRIENDLY APARTMENTS FROM BPI REAL ESTATE POLAND
At BPI Real Estate Poland we approach all our projects in the spirit of sustainable development. This is why our projects Chmielna DUO in Warsaw and Bernadovo in Gdynia are seeking BREEAM certification. Gdynia's Bernadovo will be our first certified property in Poland.
BPI REAL ESTATE POLAND'S goal is to deliver increasingly sustainable developments that prioritize the comfort of current users and future generations. The pro-environmental solutions we implement reflect a growing societal awareness of environmental issues and ESG standards. Sustainability is embedded in our company's DNA, meaning each development is designed with energy efficiency, reduced non-renewable energy demand and lower operating costs for residents. This sets our projects apart and makes them very popular.
With future generations in mind, we are committed to developing city-shaping projects that incorporate ecofriendly solutions, built in accordance with BREEAM certification standards. It is one of the world's most recognized methods for evaluating sustainable buildings, covering a wide range of criteria regarding a building's environmental impact, functionality, occupant comfort and energy efficiency. We are pursuing BREEAM certification for two of our developments—Bernadovo in Gdynia and Chmielna DUO in Warsaw. This certification defines best practices in the design, construction and use of developments in accordance with the concept of sustainability. In addition, it requires us as a developer to use certified materials, monitor water and energy consumption, and protect local flora and fauna.
For residents, this means choosing a property built to the highest environmental and wellness standards. Today BREEAM is a global benchmark in real estate, increasingly sought after by investors, developers, tenants, and homebuyers alike.
We prioritize the implementation of ESG principles to realistically reduce the carbon footprint generated by the real estate sector. We introduce green solutions from the earliest possible stages of the project—design, construction and even at the property purchase phase. Chmielna DUO exemplifies this approach, as we used certified green concrete for the first time in our projects in Poland. Our developments feature a wide range of eco-friendly innovations, including solar panels, lush vegetation, green and white roofs, light-colored facades, heat pumps, and specially designed water retention systems using rainwater. We also install drip lines for watering plants, charging stations for electric vehicles, as well as bike racks, shelters and washers.
Our clients include those who know that the quality of a property matters and affects its future value and its alignment with European ESG standards. Our projects attract discerning, educated buyers who know that the quality of a property affects its future value. This is confirmed, among other things, by our experience in Belgium, where certification of the appropriate energy efficiency level must be obtained before selling an apartment. In Poland, legislation in this area is advancing and the buildings’ energy efficiency level has an increasing impact on property values. Therefore, we plan to continue to develop premium sustainable residential properties in Poland. We are currently implementing green solutions in all our projects in Poland. We are also actively preparing to launch new, increasingly sustainable developments in the future.
Bernadovo, Gdynia - visualization
Chmielna DUO, Warsaw - visualization
Raben Logistics Polska zero-emission warehouse in Żółtki
RABEN SUSTAINABLE WAREHOUSES
For over 30 years, Raben Group has been actively expanding in the Polish market by investing in modern technologies and warehouse facilities. The company has developed its own standard, ensuring that new warehouses have nearly zero emissions. These buildings are already operational in regions like Wielkopolska and Podlasie, and the company is working on further facilities.
Reducing emissions in warehousing is a key pillar of Raben Group's ESG strategy. As a result, newly constructed facilities are designed to ensure almost zero emissions. In older or rented warehouses, the company strives to implement as many energy-saving solutions as possible, aiming to significantly reduce energy consumption.
RABEN IN THE CAPITAL OF WIELKOPOLSKA
Raben Group's history in Poland began in 1991 in this region, with the establishment of its branch in Baranów, followed by logistics centers in Gądki and Robakowo, which became important points on the region’s logistical map.
In July 2024, Raben Logistics Polska launched another facility in Poznań. This event is significant not only for the Group but also for the entire region, as it symbolizes further dynamic growth in Wielkopolska. One of the key advantages of the new warehouse, spanning approximately 44,000 m², is its strategic location—close to the center of Poznań and the A2 motorway. Most of the warehouse's capacity has already been reserved for Mars Wrigley, a long-term partner of Raben Group. The facility is characterized by modern, eco-friendly solutions, earning it a BREEAM certificate at the Excellent level. Additionally, the construction complies with strict sustainable building standards, meeting FM Global requirements, which highlights its innovative approach and environmental care.
“Thanks to the opening of the Poznań branch, Raben can strengthen its presence in Wielkopolska. The new location is another step in both the company’s and the region’s development in terms of warehousing and urban logistics,” said Lucyna Zaborowska-Princ, Regional Director of Raben Logistics Polska.
Raben is undertaking new investments, distinguished by high quality, modern solutions, to optimize its own processes as well as its customers. These developments allow the company to perform faster transshipments, reduce the risk of damage, and improve goods control, ensuring product safety for its customers and building a competitive advantage for both the logistics operator and its business partners.
The opening of the new Poznań branch is a milestone—both a symbol of growth and a return to the roots, strengthening ties with the region where the company first found success. However, this is not the only investment launched by the company this Summer.
ZERO-EMISSION BIAŁYSTOK
At the end of July 2024, Raben Logistics Polska moved its operations from Choroszcz to a modern facility in nearby
Żółtki, Białystok. The new location, which includes 7,000 m² of warehouse and office space, was designed with efficiency and sustainability in mind. The 6,000 m² cross-dock warehouse, equipped with 55 truck ramps and large maneuvering areas, is fully suited for intensive transshipment operations.
The new facility meets not only the company’s standards but also the expectations of its customers. As a zeroemission warehouse, it is distinguished by its very low energy consumption, with all energy coming from renewable sources. Additionally, the building operates without producing carbon dioxide emissions from fossil fuels, significantly reducing its carbon footprint and reinforcing the company’s pro-environment strategy.
In this context, of increasing challenges related to climate change and the global need to transform the energy sector, zero-emission warehouses are becoming key components of modern energy systems. This innovative approach focuses on storing energy and resources in a way that minimizes or eliminates harmful emissions, marking an important step towards sustainable development and environmental protection.
NEW INVESTMENTS
Raben Group continues its dynamic expansion, planning further strategic investments that will strengthen its market position. This autumn, the company will open a new branch with an impressive area of 110,000 m² in the Mazowieckie province, further expanding its network of warehouses. Raben Logistics Polska operates an extensive network of branches, employing thousands of specialists across Poland and providing comprehensive logistics services of the highest quality.
Each new investment represents another step toward more efficient, ecological, and modern solutions, which will benefit not only the company but also its partners and the broader business environment. Raben Group constantly strives for excellence, setting higher standards in the logistics industry and becoming a role model for others. Together with our customers, we are shaping a future where logistics plays a key role in the development of a modern, sustainable world.
www.polska.raben-group.com
CTPark Warsaw West
Raben warehouse in Poznań
SIX QUESTIONS FOR BARTŁOMIEJ KORDECZKA
Warsaw Business Journal sits down with Bartłomiej Kordeczka, Poland's Co-Managing Partner and the Deputy Head of Real Estate at Dentons, to talk about the commercial real estate investment market sentiment in Poland
1.
How does the real estate investment market in Poland look?
In 2023, Central Europe’s commercial real estate market witnessed an interesting change. By looking at the pool of inbound investors—Western capital inflow decreased while the local investment share rose. In particular, 12% of the capital invested in the Polish market in H1 2024 came from domestic investors, making an increase from the
2-5% in previous years. I see this as a very positive sign for our market and this trend clearly highlights the growing role of regional investors in sustaining market liquidity and driving investments.
Obviously, at the same time, we actively encourage foreign companies to consider new transactions in Poland, highlighting the country's significant potential, especially in uncertain times. While Western European countries are often seen as ideal investment destinations, I can assure you that Poland is also offering prominent opportunities, as recognized by investors from the CEE region.
2.
Is Poland the most undervalued market in CEE?
Poland stands out as an underrated gem in the commercial real estate market in Europe. As a CEE market leader with a stable economy and favorable conditions, it is an attractive yet undervalued destination for new investors and their projects. The positive outlook for Poland’s real estate sector is reinforced by a rising number of transactions and investment volumes so far this year, which have doubled, compared to 2023. This trend is expected to continue in the second half of 2024, signaling robust growth and presenting a wealth of opportunities in the real estate sector. Poland’s unique position makes it a prime candidate for investors seeking stability and growth in the region.
3.
What emerging trends do you anticipate will shape the future of the PRS sector in your country over the next few years?
The Private Rented Sector (PRS) and Purpose-Built Student Accommoda-
tion (PBSA) are expected to attract significant investor interest in the coming years. Key sector trends here include forming new collaboration models among investors, developers, and property owners, such as joint ventures, which enhance liquidity and enable scale expansion. Driven by the dwindling supply of land in attractive locations, there is also a growing number of projects which involve converting commercial premises, like offices or retail spaces, into PRS and PBSA. We are involved in a pioneering transaction of this type in Warsaw now, with conversion of offices into PBSA.
Another emerging trend is co-living, a housing model based on the shared economy. This concept provides residents with a convenient accommodation while fostering community participation. This model is already well-established in Western markets, but in Poland it is only beginning to gain traction and should attract new residential investors.
4.
Are offices to take a leading role in the investment market?
The Polish office market is one of the most dynamic and innovative in the Central and Eastern European region. Office developments remain a key focus for investors, particularly in centrally located areas in major cities like Warsaw, reflecting underlying confidence in the market, despite geopolitical concerns. Unlike other European markets, Polish offices are high-performing commercial properties. In H1 2024, transactions involving office assets represented 46% of the investment market in Poland, making it the largest sector during this period.
Additionally, the office investment market has seen several deals in regional cities, following the dominance of Warsaw. Most of these deals involve value-add and opportunistic assets, indicating a strong presence of prudent investors who seek opportunities
Poland stands out as an underrated gem in the com-
mercial real estate market in Europe
without overpaying for assets. What is interesting about Poland is that hybrid working has not had a significant impact on the office leasing market. Here, the possibility of hybrid work is primarily viewed as an employee incentive, typically involving 1-2 days of remote work per week. Unlike some other European cities where hybrid work trends are influenced by long distances between home and office and rising urban violence, Poland's adoption of this model is driven by post-pandemic shifts and employee expectations. This trend is expected to persist, shaping the future of the way we work in Poland.
5.
‘Retail is dead’ – fact or myth?
Retail remains a vibrant sector in Poland, accounting for 30% of the total transaction volume in the first half of this year. Such results were largely driven by the record €285 million acquisition of Cromwell’s portfolio of six shopping centers by Star Capital Finance, the largest retail investment transaction since early 2022. This
deal highlighted the robust activity of CEE investors in Poland, and should encourage further transactions and new projects, many of which are already in the pipeline and in the advanced stages of negotiation.
Overall, we are witnessing a shift in investor sentiment. Currently, the most sought-after shopping centers are those located in major cities and anchored by food retailers with long-term leases. This marks a change from the dominance of convenience centers in previous years to gallery transactions, indicating evolving preferences in the Polish retail investment market.
6.
Nearshoring and more – What's driving warehousing demands?
Warsaw is an ideal location for small business units (SBUs) with high demand for small and flexible warehouse modules. Despite a decrease in investment volume this year, caused by a lack of large portfolio transactions and a disparity between seller and buyer price expectations, the sector is stabilizing and is expected to perform better in the second half of the year.
A key driver of warehousing demand is nearshoring, as production shifts closer to sales markets. Poland is poised to benefit significantly from this trend, positioning itself as a major hub for logistics and warehousing. The industrial sector is also anticipating large deals, which will further boost demand.
In conjunction with our partnership with Entralon, the Warsaw Business Journal is conducting exclusive interviews with distinguished real estate professionals to exchange valuable insights and explore investment strategies that pave the way for a more prosperous future. www.entralon.club
POLISH REAL ESTATE SURGES: REGIONAL CITIES AND RETAIL LEAD 2024 INVESTMENT
The Polish real estate market saw a 91% surge in investment turnover in early 2024. Regional office and retail properties are drawing attention as investors move beyond Warsaw, while the industrial and logistics sectors face short-term hurdles but are set for growth by 2025. Key trends highlight promising opportunities for international investors.
LOKALE IMMOBILIA
Poland’s real estate market saw investment turnover reach €1.7 billion, marking a 91% growth over 2023
The Polish real estate market is experiencing a significant rebound in 2024, marking a 91% increase in investment turnover compared to the same period last year. This growth is a testament to the renewed investor confidence in the region, driven by a confluence of factors including easing macroeconomic pressures, declining inflation, and lower interest rates from the European Central Bank. With investment volumes reaching nearly €1.7 billion in the first half of the year, the sector has seen significant activity across retail, office, and industrial segments. Notably, while Warsaw remains the focal point of investment, regional cities like Wrocław and Kraków are emerging as key areas of interest. Meanwhile, the industrial and logistics sectors are expected to regain momentum by the end of 2024, positioning the country for sustained growth into 2025.
A STRONG REBOUND IN POLISH REAL ESTATE
Poland’s real estate market is experiencing a revival that few had anticipated a year ago. The first half of 2024 recorded a total investment turnover of approximately €1.7 billion, marking an impressive 91% growth over the same period in 2023. This rebound is being driven by several key factors, most notably the stabilization of Poland’s economy after several turbulent years.
Inflation, which had been a major concern in 2023, has begun to ease, while interest rates have fallen in response to actions by the European Central Bank. These factors have combined to create a more favorable investment environment, lowering the cost of financing and making Polish assets more attractive to international investors. Large-scale acquisitions, such as the €250 million Vulcanion stake, have further bolstered investor sentiment.
The return of confidence is also reflected in
the diversity of investment targets. Poland’s real estate landscape is no longer solely dominated by prime office spaces in Warsaw. A surge of interest in retail parks and mixed-use developments across the country has diversified the market, with several transactions pushing the €100 million mark.
This newfound vigor is a reflection not only of improved economic conditions but also of Poland’s strategic position in Europe. International investors, especially those from Western Europe and the U.S., are increasingly seeing Poland as a gateway to Central and Eastern European markets. Given this rebound, the remainder of 2024 promises continued robust activity, with investment levels poised to exceed even pre-pandemic peaks.
REGIONAL CITIES AND RETAIL ASSETS STEAL THE SPOTLIGHT
While Warsaw has traditionally been the focal point for most property investments, 2024 has seen a marked shift in attention toward regional cities. Locations like Wrocław, Kraków, and Gdańsk are emerging as dynamic hubs for commercial and retail real estate activity, appealing to both local and international investors alike.
In Wrocław, several major office deals have been closed in the first half of 2024, with many high-profile firms choosing to relocate or expand their operations outside Warsaw. This reflects a broader trend across Europe, where companies are seeking more affordable and less congested locations for their operations. The rise of co-working spaces and flexible office solutions has further fueled the growth of these secondary cities, making them appealing to tech startups and established corporations alike.
Kraków, another regional heavyweight, has also seen significant investments in its retail sector. One of the most notable trends has been the surge of interest in retail parks—
LOKALE IMMOBILIA TRENDS
Regional cities like Wrocław and Kraków are emerging as key hubs for commercial and retail investment
large, outdoor shopping centers typically anchored by supermarkets or home goods stores. In the first half of 2024, €285 million was invested in retail assets, with a large portion going into regional cities like Kraków and Katowice. Retail parks, in particular, have proven resilient, attracting a diverse array of international investors due to their stable returns and growing consumer demand.
This shift towards regional cities has reshaped the investment landscape in Poland. For international investors, the appeal of investing outside Warsaw lies in the potential for higher returns at relatively lower entry prices. Additionally, these cities benefit from well-developed infrastructure, highly skilled labor markets, and growing demand for commercial real estate, making them ideal locations for long-term investment.
INDUSTRIAL AND LOGISTICS SECTORS BRACE FOR GROWTH IN 2025
While the first half of 2024 has been marked by strong growth in office and retail sectors, Poland’s industrial and logistics markets are facing temporary headwinds. Rising financing costs and increased construction expenses have slowed new developments in this segment, particularly in warehouses and logistics centers.
Despite this short-term slowdown, the outlook for the industrial and logistics sectors remains positive. Investors anticipate that as interest rates continue to decrease and financing conditions improve, the demand for logistics spaces will pick up by late 2024. This trend is being driven by Poland’s strategic location at the crossroads of Europe, making it a critical hub for the growing e-commerce and manufacturing sectors.
Sources:
EuropaProperty: "Poland's Property Investment Market Shows Signs of Rebound in H1 2024"
"Is Poland’s Investment Market Turning a Corner?"
Property Forum: "Confidence is Emerging in the Polish Investment Market"
Several large portfolio acquisitions are expected toward the end of the year, signaling a resurgence in the industrial market. International investors are particularly eyeing opportunities in the logistics sector, where demand for modern warehouse space is expected to surge as the global supply chain stabilizes. In fact, some experts predict that the Polish logistics market could become one of Europe’s most active by 2025, especially in regions such as Silesia and the Pomeranian Voivodeship, where logistics infrastructure has been expanding rapidly.
For international investors, the slowdown in industrial real estate presents a potential opportunity. Those who enter the market during this temporary lull may be well-positioned to capitalize on the sector's long-term growth trajectory. As Poland continues to solidify its role as a key logistics hub for Europe, the industrial sector is poised for a rebound that could generate significant returns for early movers.
POSITIVE OUTLOOK REMAINS
The Polish real estate market in 2024 presents a opportunity for international investors. With investment turnover up by 91% and growing interest in regional cities and retail assets, the market is more diverse and dynamic than ever before. While industrial and logistics properties are facing shortterm challenges, the outlook remains positive, with a recovery expected by 2025. As Poland continues to play a pivotal role in Europe’s broader economic landscape, its real estate market offers promising prospects for both short- and long-term investment strategies.
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POLAND LEADS EU IN AI ADOPTION
Poland is experiencing the fastest growth in artificial intelligence (AI) adoption within the EU, with 30% of companies now using AI technologies—a 36% increase over the past year, according to AWS data presented at AWS Cloud Day in Warsaw. This surge aligns with the European Commission's "Road to the Digital Decade" program. The latest AWS report predicts that continuing this trend could add PLN 576 billion to Poland's economy by 2030.
AI’s impact is notably significant in the defense sector, where 71% of companies utilize AI. Other sectors like manufacturing and finance also report benefits from AI in efficiency and decision-making. However, challenges include recruiting skilled employees and navigating legal regulations. To address these, companies are prepared to offer higher salaries and seek expertise in AI, cybersecurity, and data analysis.
DIGITIZATION
Min of Digitization extends time for implementing high-speed internet projects
Poland's Ministry of Digital Affairs extended the deadline for broadband internet access projects funded by the Broadband Fund to June 30, 2025. Initially, the deadline was set for December 31, 2024. This extension applies to municipalities like Szczawno-Zdrój, Choczewo, and others that received funding to improve internet access. The decision responds to requests from local governments and applies to all beneficiaries who need more time.
Additionally, the deadline for final reports has been extended from January 30, 2025, to July 31, 2025. The maximum financial aid per project is PLN 5 million, covering up to 80% of eligible expenses. The Broadband Fund supports both the supply and demand for fast internet services.
3D PRINTING
XTPL to provide Delta Printing System for University in USA
XTPL confirmed an order from a university in the northeastern USA for the delivery of a Delta Printing System (DPS), which will be used for R&D in semiconductor micro-assembly technology. This is the second transaction facilitated by XTPL's Boston-based subsidiary, XTPL Inc., which will also manage the order. The Boston office was opened as part of the company's strategy initiated in November 2023.
XTPL develops and commercializes additive technology for ultra-precise printing of nanomaterials, applicable in the growing field of printed electronics, including semiconductors,
Retail targeted by cyberattacks, losses in millions of zlotys
According to the Adyen Retail Report 2024, one in three Polish retail businesses has fallen victim to fraud, cyberattacks, or data breaches, with average losses of PLN 8.3 million per company. In 2023, the retail sector lost PLN 87 billion due to cyberattacks, with companies expecting revenue growth of over 100% losing the most (PLN 36 billion). Despite rising fraud, only 66% of businesses have effective fraud prevention systems, a slight increase from last year.
The average loss per consumer has risen by 169% to PLN 1,791. Consumers are increasingly cautious, with 30% feeling less secure than a decade ago. Many prefer faster transactions with fewer data disclosures.
displays, and advanced PCBs. XTPL debuted on the Warsaw Stock Exchange (GPW) in 2019.
GAMING
CD Projekt H1 2024 profit surge
CD Projekt reported a significant rise in consolidated net profit to PLN 170.01 million in H1 2024, nearly doubling the PLN 90.22 million recorded in the same period last year. Operating profit also increased to PLN 140.22 million from PLN 97.89 million. Sales revenue grew to PLN 424.81 million, largely driven by strong sales of "Cyberpunk 2077" and its "Phantom of Freedom" expansion. CFO Piotr Nielubowicz highlighted the company's financial resilience, noting an increase in financial reserves despite dividend payouts and substantial project development investments. CD Projekt, known for the "The Witcher" series and
"Cyberpunk 2077," is listed on the WSE and a part of the WIG20 index.
ARTIFICIAL INTELLIGENCE
OpenAI Launches O1: Advanced Thinking AI Model Now Available
OpenAI has unveiled its latest artificial intelligence model, O1, a significant leap in cognitive AI technology. The O1 model, touted as a "thinking AI," is now accessible to developers and businesses globally, offering enhanced problem-solving and decision-making abilities.
“OpenAI’s O1 model is a groundbreaking advancement. Its real-time data processing and analysis will transform industries like finance and healthcare,” Mateusz Kowalski, CEO of Tech Innovators Polska, stated. The O1 model features an improved neural network architecture that enables hu-
CYBER CRIME
man-like reasoning, leading to more accurate predictions and better natural language understanding. This makes it ideal for applications such as advanced customer service bots, intelligent data analysis, and autonomous decision systems.
GAMING
Polish gaming anticipates revival in industry
In the coming months, the Polish gaming industry is expected to experience positive trends and improved market sentiment, according to opinions collected by ISBtech at Gamescom. Experts foresee an increase in the number of gamers and growth in related gaming services.
Significant titles anticipated by the end of 2024 include "Call of Duty: Black Ops 6," "Stalker 2: Heart of Chornobyl," and "Indiana Jones And The Great Circle," among others. The Gamescom event highlighted a record number of exhibitors and a noticeable optimism in the industry, despite recent challenges such as layoffs and studio closures.
The gaming sector is seeing a rise in services like gametech, cloud services, and esports. Recent game releases, like "Black Myth: Wukong," which sold over 10 million copies in three days, signal a positive shift. Investment from international sources and growing interest in Polish games are further encouraging signs.
GAMING
Artifex Mundi growing at double-digit rate
In August 2024, Artifex Mundi achieved nearly PLN 9.4 million in revenues, up from PLN 8.4 million in July, marking an 18% y/y increase. The company invested a record PLN 5.6 million in acquiring players for their game "Unsolved," which contributed
PLN 8.8 million to August’s revenue. This reflects a 13% rise in daily revenue from the app compared to July.
Over the first eight months of 2024, Artifex Mundi’s revenue reached PLN 69.9 million, a 37% increase from 2023. The company’s gross margin also grew by 43% to PLN 34 million. CEO Przemysław Błaszczyk emphasized successful market adaptation and ongoing development in mobile gaming.
SEMICONDUCTORS
Intel postponed plans for factory in Poland as company’s financial situation deteriorates
Intel has postponed its plans to build semiconductor factories in Germany and Poland until 2026 due to its worsening global financial situation, as announced by Poland’s Ministry of Digital Affairs. This includes halting a $4.6 billion investment in a semiconductor integration and testing facility in Miękinia, near Wrocław, where 2,000 jobs were planned. Poland was set to provide PLN 7.4 billion in public aid for the project. Despite the delay, the Polish government remains open to supporting other semiconductor investments and streamlining future projects. Intel's decision comes amidst cost-cutting efforts and market challenges. The company employs over 121,000 people globally, including around 10,000 in the EU.
TECH NUMBERS
AI, Here to stay 30%
AI adoption within EU using AI technologies 26% increase over last year
PLN 576 billion
AWS report of added value for Poland’s economy by 2030 71%
percentage of companies utilizing AI in the defense sector. (AWS report)
48%
Percentage of enterprises that use Gen AI 46%
organizations planning to adopt Gen AI within two years 6%
percentage that have no plans to adopt AI 47%
Marketing departments use Gen AI 34%
Sales that use AI 26%
IT departments that use Gen AI 73%
AI improved efficiency 6%
percentage of companies that fully comply with regulations concerning AI (SAS-commissioned study)
THE BREAKDOWN OF GLOBALIZATION AND THE NEW AI/ HUMAN ORDER
Natalia Hatalska, CEO and founder of the infuture.institute, explores the trend of deglobalization, emphasizing that while global tensions, such as the COVID-19 pandemic and geopolitical conflicts, challenge interconnectedness, total deglobalization is unlikely.
INTERVIEW BY SEAN REYNAUD
WBJ: Recently there has been talk of friendshoring, or nearshoring, of a breakdown of globalization. How do you see global trade in future?
Natalia Hatalska: We have observed for some time now the trend called deglobalization, but total deglobalization is not possible. The COVID-19 pandemic, the war in Ukraine, and the ongoing situation in Israel, have all demonstrated that the global order is experiencing significant stress. However, it's important to look at this issue from a broader perspective, including the role of the United States.
Currently, internal polarization within the United States is contributing to a weakening of its role as a leader in the Western world, which in turn affects global dynamics. This situation is both a political and an economic issue.
Economically, the COVID-19 pandemic disrupted supply chains, and subsequent events like the war in Ukraine have forced companies to address the negative impacts of these disruptions. As a result, many businesses are turning inward to strengthen regional supply chains. These forces are contributing to the trend of deglobalization, but still total deglobalization remains unlikely. Our world is too interconnected for total disengagement.
So what do you think of China’s movements to dump products on European shores, of unfair trade practices?
I prefer to view China’s trade practices within a broader perspective, particularly in the context of a technological arms race primarily between China and the United States, and in terms of China's influence over Western parts of the world. For example our research, which involves analyzing over half a million patents each month in various languages, reveals that China consistently files the largest number of patents, followed by the U.S. This highlights the intense competition in technological innovation. However,
this rivalry extends beyond technology; it’s also about influence and the potential erosion of sovereignty. For example, many Western nations, like the U.S., UK, and Australia, have resisted implementing Chinese 5G technology. Yet Europe faces a unique challenge, as approximately one-third of its 5G infrastructure relies on Chinese hardware. A similar situation is emerging with electric vehicles, where China’s rapid technological advancements are part of a broader strategy to assert global influence.
We know that 5G routers from China have chips from other countries, including the US, Taiwan and even Germany. Yes, it is true. This is also why the United States is trying to regulate and control the flow of chips.
We have seen as well that western chips have found their way into Russian missiles.
This is globalization. It’s impossible to deglobalize the world.
How much of a role will humans have in the production process considering the widespread use of AI?
There is a scenario that imagines an AI takeover, where the entire human workforce is replaced by AI. A survey of over 800 AI experts a few years ago suggested that such a total takeover could happen in about 200 years. However, this doesn’t mean that the entire human workforce will be eliminated in 200 years; rather, it indicates that this scenario is highly improbable according to AI experts.
Of course, currently we see rising number of layoffs. There is this website - layoffs.fyi that shows live data, every month, of layoffs from around the world. If you analyze this data and look at it you will see that, of course, that the largest number of layoffs are in technological companies, which is partly due to the AI revolution. But this is also a reflection of what is happening economically. The economy is still being influenced by CO-
VID-19, the war in Ukraine, in Israel. So, companies are looking for cost cutting. Do you think the trend will reverse? I don’t know. These forces are really strong. On the one hand you have economic forces, on the other technological forces, and we can see what’s happening as a result. Even in Poland, we are seeing a change from favoring employees in the market towards one that now favors employers. This is especially true in IT. It’s a very tough situation. Of course the AI transformation also requires new jobs, and we see new people coming into this field. But on the other hand, we see automation of human tasks.
You often say that you cannot predict the future but you can prepare for the future. So what degrees should young people be preparing for?
A recent report in Poland asked what employees thought about their education. Over 70% said that school programs did not prepare them for the job they wanted to pursue. This is very alarming for me. However, it’s not alarming in terms of a bad educational system but in how we view education. We are living in the AI era. And the AI era has automated more tasks than at any other time in technological history. We have automated physical tasks before, and are automating cognitive tasks now. If we still expect education in the AI era to prepare us for a single skill, then it means we intend to become mere labor machines.. It cannot be like this. We cannot expect education to prepare us just for a job. Education should teach how to think and how to learn. This is the most important aspect of education. I think we need to change the way we perceive education in this new era.
Ray Kurzweil talks about the “Singularity” that we will come together with AI, to become part human, part machine. He’s very positive about it. How will this play out?
I know Ray Kurzweil is using this term Singularity, but if you look at how
other experts talk about that, they use another word: AGI, artificial general intelligence. So, the Singularity and AGI are almost the same. AGI is the more emerging term. Kurzweil says it will happen around 2040, Elon Musk says it will happen around 2029. The survey I mentioned earlier, with the AI experts, also mentioned AGI/Singularity, and those experts imagined that it will happen in thirty-seven years. Again, what is important is not when it will happen, but that the AI community thinks that AGI is possible. So, it could happen.
The problem with AGI is that we will then no longer be the most intelligent species on earth, which has huge consequences for us.
Will there still be room for humans? Hopefully. There is a theory that we are like bees that pollinate technology, that we serve a purpose in creating these new technologies as workers. But what is important about AGI is that it can make high quality decisions, and the systems are autonomous. We cannot as of now say how AI makes decisions. Some systems are trained through a reward system, to create desired outcomes, and punished for undesirable outcomes. However, how they come to their outcomes, the AI, is achieved autonomously. Hypothetically, we could tell AI to find a cure for cancer, and it’s reward oriented, meaning it wants as many rewards as possible. Well, if the AI wants to it could decide to eliminate humans entirely as a cure for cancer. No humans, no cancer.
To prevent something like this we need to have a system aligned with human values, which is hugely difficult to achieve. We need a broader discussion on that since there are many misconceptions about what these human values are, and whether we can agree on them. Additionally, these values change over time. On the other hand, we should work on systems that are autonomous but corrigible, which means they take instruction.
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Life + Style ART, ELEVATED
Inside Warsaw’s newest art destination: a bold statement on creativity, community, and modern culture.
On October 25th, 2024, the Museum of Modern Art in Warsaw (MSN) will finally open its doors on Plac Defilad, a long-awaited moment for the city's vibrant art scene. As we step into this stunning new space, we're not just visiting another gallery—we’re entering a manifesto. For three weeks, the museum will host an array of exhibitions, performances, concerts, and lectures, offering a tantalizing glimpse of what’s to come.
The centerpiece of the opening? An exhibition of works by women artists like Magdalena Abakanowicz, Alina Szapocznikow, Sandra Mujinga, and Cecilia Vicuña. It’s a powerful statement: a celebration of voices too often forgotten or overshadowed. “We’re starting with women, filling in the gaps in art history,” says museum director Joanna Mytkowska. And it feels fitting—this building, with its minimalist white concrete exterior, nestled between Warsaw's past and future, is the perfect stage for such bold stories.
The new edition of the Warsaw Under Construction festival, titled The Museum Between the Square and the Palace, further deepens this dialogue, engaging with the surrounding urban landscape and its historical context. After two decades of being a nomadic institution, MSN has found its permanent home, firmly rooted in Warsaw’s changing skyline.
It’s not just visual art that will take center stage.
The museum’s opening program includes performances reimagining the past decade of Polish choreography and architecture explored through motion. Plus, Kinomuzeum will offer a fresh space for experimental cinema, showcasing everything from independent films to hidden gems from mainstream cinema.
Warsaw’s creative community is also invited to play a direct role in shaping the museum’s future, with the newly-formed Artists’ Civic Council—a first for Poland. This council aims to bring artists from various fields together, giving them a platform to voice ideas, shape policy, and influence how the museum serves the city’s cultural fabric.
In every corner of this new space, there’s a commitment to innovation, inclusion, and bold expression.
“Stepping into this new space is more than just visiting a museum –it's entering a bold manifesto for the future of art”
ART BOX EXPERIENCE: DALI CYBERNETICS
Step into a world where surrealism meets technology...
Poland’s first multisensory exhibtion, Dalí Cybernetics, opened on Friday, September 13th, 2024 at the Art Box Experience in Fabryka Norblina in Warsaw. Exploring Salvador Dalí, one of the 20th century’s most influential artists. Dalí pushed the boundaries of art and science, drawing inspiration from Einstein’s theory of relativity. His iconic works like The Persistence of Memory symbolize his genius. Dalí Cybernetics merges his surrealist imagination with modern technology, featuring large-format projections, AI, and virtual reality for a fully immersive experience. Visitors can interact with reimagined versions of masterpieces like The Burning Giraffe and The Temptation of Saint Anthony. The exhibition also offers educational experiences, with programs ranging from school workshops to themed tours for all ages, blending traditional learning with digital innovation. It’s a unique journey through Dalí’s world that both entertains and educates.
For more information: artboxexperience.com
EVENTS
The WBJ relives or looks forward to the most important events in the world of business and economy
ECONOMIC FORUM 2024: A MILESTONE EVENT IN KARPACZ
The 33rd edition of the prestigious Economic Forum, hosted in Karpacz from September 3-5, 2024, brought together an unprecedented number of over 6,000 participants, including influential politicians, business leaders, local government officials, academics, and representatives from NGOs. Organized by the Institute for Eastern Studies Foundation, this year's event featured close to 600 sessions, debates, and panels covering pressing economic, social, and political challenges on a global scale. Noteworthy figures in attendance included Władysław Kosiniak-Kamysz, Deputy Prime Minister and Minister of National Defense; Krzysztof Gawkowski, Deputy Prime Minister and Minister of Digitalization; and Agnieszka Dziemianowicz-Bąk, Minister of Family, Labor, and Social Policy. Joining them were Dariusz Wieczorek, Minister of Science; Krzysztof Paszyk, Minister of Development and Technology; and Jacek Siewiera, Head of the National Security Bureau. Additionally, high-ranking military officials like General Rajmund Andrzejczak, former Chief of the General Staff, and General Waldemar Skrzypczak, former Commander of the Land Forces, contributed to the discussions.
For more information: forum-ekonomiczne.pl
Highlights from past events
PROPERTY FORUM 2024: NEW INVESTMENTS ANNOUNCED BY BIG PLAYERS IN THE REAL ESTATE MARKET
The Property Forum in Warsaw came to a close. For two intense days, September 16 and 17, the invited experts discussed and sought answers to the question of what makes for a good investment. CEOs and owners of major companies in the industry, as well as representatives of the Polish government and local authorities, participated in the event. The Property Forum scene saw announcements from developers and investors concerning new projects and investments, highlighting the importance of the event in industry growth.
Over 1000 participants, almost 130 speakers, 20 thematic sessions, an awards gala, and key conclusions and opinions — that is how the 14th edition of the Property Forum can be summarized. The mission statement of the event was “JUMP TO THE FUTURE.”
“Poland has a strong foundation for further economic growth. In order to attract bigger investments, legal and tax stability and the development of the local capital market are essential,” emphasized Maciej Dyjas, a partner at Griffin Capital Partners.
Dyjas added that maintaining this trend relies on both strong macroeconomic fundamentals and a stable legal and tax environment.
During Property Forum 2024, Panattoni, the largest industrial real estate developer in Europe, announced a new direction of development. “We are currently working on creating a sub-unit dedicated to “data center”-type facilities,” revealed Robert Dobrzycki, CEO and co-owner of Panattoni in Europe, India, and the Middle East.
“As long as the global GDP continues to grow, the number of warehouses will follow suit,” he added.
What else is worth investing in within the commercial real estate market?
Kamil Kowa, the director of Savills Poland, pointed to the “Beds and Sheds” segment. “It dominates the European real estate market. Both foreign and local investors want to invest capital in residential, multi-family, hotel, and student projects, as well as in fully designed warehouses, in order to satisfy the needs of the growing e-commerce market,” he stated. Property Forum was complemented by the gala held at the end of the first day of the event. During this ceremony, awards were presented to the finalists of two contests: the Prime Property Prize and the PropTech Festival. The Prime Property Prize recognized companies and projects that had the most significant impact on the commercial real estate market over the past year, as well as individuals whose outstanding efforts played a key role in the development of the entire industry.
This year's awards went to the City of Łódź, Echo Investment, LCP Properties, 7R, Arche Group, Noho Investment, Volvo Tech Hub, Action, InPost, Hampton by Hilton, Griffin Capital Partners, AXI IMMO, Doki Living, LIXA D&E, Sky Tower, and Waldemar Olbryk.
In the PropTech Festival contest, which targets creators of innovative real estate technology, awards were given to Outline AI, Rebench, and Zero Waste Expert.
For more information: propertyforum.pl
EVENTS
The WBJ relives or looks forward to the most important events in the world of business and economy
Announcements
EFNI
2024: DISCUSSING TOMORROW –FOR THE THIRTEENTH TIME
The European Forum for New Ideas (EFNI) 2024 will be held in Sopot from October 16-18. This major business conference gathers leaders from business, culture, and government to discuss global trends, innovation, and Europe’s future. Key topics include sustainability, digital transformation, and the evolving European Union. For the thirteenth time—and as always in Sopot—the European Forum for New Ideas (EFNI) will take place. This year's event, scheduled for October 16-18, is one of the largest business conferences in this region of Europe, focusing on global trends, innovation, and the future of Europe. The forum serves as a platform for dialogue and thought exchange among leaders from business, academia, culture, decision-makers, and representatives of local, national, and European administrations. Each year, EFNI attracts around 1,500 participants from various countries. EFNI 2024 will feature numerous prominent guests and panelists from the realms of business, culture, science, and both European and Polish public administrations, including several members of the Polish Council of Ministers. Confirmed attendees include Krzysztof Gawkowski, Deputy Prime Minister and Minister of Digitalization; Adam Bodnar, Minister of Justice; Katarzyna Pełczyńska-Nałęcz, Minister of Funds and Regional Policy; Marzena Okła-Drewnowicz, Minister for Senior Policy; Izabela Leszczyna, Minister of Health; Krzysztof Paszyk, Minister of Development and Technology; Barbara Nowacka, Minister of Education; and Paulina Hennig-Kloska, Minister of Climate and Environment. Also joining are Sviatlana Tsikhanouskaya, President-elect of Belarus; Zbigniew Derdziuk, President of the Social Insurance Institution (ZUS); and Tomasz Chłoń, the Foreign Ministry’s Plenipotentiary for Counteracting International Disinformation. This year’s event will once again be hosted at the Radisson Blu Hotel in Sopot, offering a diverse program. Panel discussions will focus on the key challenges faced by businesses and societies in a rapidly changing world, including global trends and the future shape of the European Union. EFNI is unique in Poland, as it aims to examine not just the short-term future but also the decades ahead.The panel discussions will be organized into five thematic tracks: • Europe in a Sustainable World • Europe in a Polarized World • Europe and Digital Transformation • Europe and Green Change • Healthy Europe
Additionally, the forum will feature EFNI Talks, Night Owl discussions, book signings, and more.
For more information: efni.pl
116 PROJECTS
IN THE 15TH PRCH RETAIL AWARDS COMPETITION
In this year's 15th edition of the PRCH Retail Awards competition, companies submitted a total of 116 applications, 41 in business and strategic categories and 75 in marketing categories. The jury teams are currently working on a thorough assessment of all applications. The winners of the most prestigious competition for the retail facilities industry will be announced on November 14 during the PRCH Retail Awards Gala.
– I am very pleased that in the current edition as many as 116 competition applications were submitted, which is confirmation of the increasingly good condition of the industry. I am also pleased with the increasingly broader representation of retail parks, which shows how the commercial real estate market in Poland is evolving. This is another – this time exceptional, because the fifteenth – edition, during which we look at current trends, draw inspiration and reward those who are one step ahead of others with their creativity and implementations, setting industry standards. In the previous editions, over a hundred jurors assessed over a thousand applications, awarding over 300 prizes. We will get to know the next winners soon, during the gala, to which I cordially invite you today – says Marcin Klammer, Managing Director of the Polish Council of Shopping Centers.
The jury teams are currently working on the project and will finish in mid-October. Each of the submitted applications is assessed according to precise criteria, for which points are awarded. In each category, the jury can award a maximum of 1 gold and 2 silver prizes. To do this, the project must obtain a certain number of points. If none of the submitted applications exceeds the required point threshold, the prizes in that category will not be awarded. After the competition ends, each applicant will receive a report with detailed assessment and comments from the jury.
This year's edition of the competition covers activities that were conducted between January 1, 2023 and December 31, 2023, with the exception of some business and strategic categories, for which other time frames were established. Among the 23 competition categories, there were 4 new ones: Recommercialization of the year, ESG Communication of the year, Customer loyalty activities and The biggest challenge for marketing activities.
The competition results will be announced on November 14, 2024, during the PRCH Retail Awards gala at the Kręglicki Fortress, a historic building with a unique atmosphere, at 12 Zakroczymska Street in Warsaw.
