Witold Zatoński, head of Syrena Real Estate shares his rulebook on creating value in real estate EXCLUSIVE INTERVIEW
CEEQA REPORT INVESTOR SENTIMENT IN CEE REAL ESTATE
GEN AI TOOLS ARE THEY A LEG UP FOR JUNIOR WORKERS?
CASE STUDY: GROUNDBREAKING ESG REFURBISHMENT
DIUNA
Syrena Real Estate founder
Witold Zatoński
Interview by Morten Lindholm
29 Poland: Europe’s Future
British education in Warsaw
Interview by Morten Lindholm
Energy security
IDEAS NCBR
Energy strategy
KPMG
Digital services act
IAB Poland
Residential investors
CBRE
Commercial real estate investment
CBRE
39 Lokale Immobilia News
Poles are developers’ top buyers
HRE Investment Trust
New ESG regulations
Colliers
Looking back on MIPIM 2024 by Morten Lindholm
Six Questions with Arvi Luoma of Blackbrook
AI in commercial real estate By Tom Ogrodzki
Feature: Getting a leg up by Beata Socha
Is AI stealing jobs? Salesforce
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Interview: Mateusz Dobrzykowski
PUBLISHER'S NOTE
A THIRD INTO 2024
Amidst the tumultuous backdrop of geopolitical uncertainty and global tensions, Poland continues to show stability and prosperity. A third into 2024, it becomes evident that despite the challenges on the world stage, our nation's economy and sentiment remain steadfast and optimistic. Inflation, a concern for many economies, has seen a significant decrease, falling to under 5%, aligning perfectly with the projections set forth by the National Bank of Poland. This reduction confirms confidence in our monetary policies but also provides a tangible benefit to the everyday lives of our citizens, ensuring their purchasing power remains strong.
Poland's attractiveness as a destination for international investment continues to soar. Giants like Levi’s and Michelin have chosen to close production plants within our borders, citing increasing production costs, while some may interpret this as a challenge, it signifies a natural evolution towards Poland's emergence as a hub for technology, research and development, and white-collar employment opportunities.
The satisfaction among consumers is also visible, evidenced by record footfall in shopping malls and rising property prices in major cities. This trend not only reflects confidence in our economy but also underscores the resilience of our real estate market, a crucial component of our nation's economic landscape.
In our pursuit of sustained growth and pros-
perity, forging stronger ties with international partners and leveraging Poland's strategic position within the European Union is imperative. By fostering collaboration and embracing our role as a key player in the global marketplace, we can unlock new avenues for development and innovation.
In our cover interview with Syrena Real Estate founder & CEO Witold Zatoński, we delve deeper into the intricacies of Poland's real estate market and its profound impact on our economy. His insights shed light on the opportunities that lie ahead and underscore the importance of continued investment in this sector.
To conclude, the present state of Poland's economy is a testament to the resilience, adaptability, and entrepreneurial spirit of its people. Despite the uncertainties that loom large on the horizon, we remain undeterred in our pursuit of progress and success. Through innovation, collaboration, and forward-thinking initiatives, Poland is poised to emerge as a true powerhouse in the global arena, charting a course towards a brighter and more prosperous future for all.
We still believe in – Poland. Europe’s future.
MORTEN LINDHOLM
ON THE COVER
Witold Zatoński
Founder of Syrena Real Estate
Before founding Syrena, Witold served as a Management Board Member at Warsaw Stock Exchange-listed GTC from 2007 to 2015, overseeing new investment and legal affairs. He previously worked as a Senior Associate for Weil, Gotshal & Manges in New York and Warsaw, specializing in M&A and capital markets. Witold earned his LL.M. from the University of Warsaw (1998) and Columbia Law School (1999), and completed real estate executive courses at Harvard Business School. He also holds a Certificate in English and European Law from Cambridge University and the University of Warsaw. Witold was admitted to legal practice in New York (2000) and Poland (2004).
Exclusive Interview on page 14
Svetlana Fedosova
Founder
of Entralon Club
Tom McGrath
Principal, British Primary School of Wilanow
A native of Ireland, Tom McGrath has over 25 years experience in international education with successful headships in Poland, Portugal and the Caribbean. A graduate of University of Limerick and Trinity College Dublin, he has also completed advanced studies in Applied Linguistics, International Education and International Relations. He joined British Primary School of Wilanów in 2017 and has seen it grow to over 350 pupils. He has overseen its accreditation with the Council of British International Schools, its accreditation with Cambridge International Education and its joining with International Schools Partnership.
Interview on page 30
Svetlana founded Entralon Club in 2022 and has been active in European real estate since 2016. She launched the GRI Club Chapter in Central and Eastern Europe (CEE), where she organized member events, and played a significant role in the 2022 relaunch of the CEE Quality Awards. Svetlana collaborates with leading institutional investors to promote the CEE region as a prime spot for real estate investment. She organizes events like the CEE Business Retreat and the CEE & SEE Summit in London. Beyond work, she is an advocate for gender equality and work-life balance, coaching young female entrepreneurs in her free time.
Svetlana is quoted in the article starting on page 48
Contributors Beata Socha Svetlana Bagheri (Fedosova)
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
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IN REVIEW
WARSAW UNVEILS LANDMARK PEDESTRIANCYCLIST BRIDGE
Warsaw celebrates the inauguration of its groundbreaking pedestrian and cyclist bridge, spanning 452 meters and connecting the city center to Praga. Completed two years ahead of schedule, the bridge offers not only convenience but also scenic views of the Vistula River and Warsaw's historic UNESCO World Heritage Site. Mayor Rafał Trzaskowski led the inaugural evening walk, marking a significant milestone for the capital. Designed with both transportation and leisure in mind, the bridge features wide stretches for relaxation, complete with wooden seating, promising a seamless journey for pedestrians (6 minutes) and cyclists (2 minutes) alike.
DOMESTIC FOOD
Ukrainian grain exports spark concerns
Ukrainian farmers plan to export the remainder of this year’s grain harvest by the end of May, sparking concerns about effects on domestic and global markets. Mykola Gorbachev, president of the Ukrainian Grain Association, expects a slight price increase due to reduced supply. Despite logistical challenges, he is optimistic about future opportunities, such as potential alliances with France and Poland. However, legislative restrictions could hinder Ukrainian grain access to the European market. Gorbachev emphasizes Ukraine’s resilience and ability to adapt, looking forward to strengthening its position in the global grain market in the coming years.
JOB MARKET
Almost half of Poles plan to change jobs due to low salary
Nearly half of the surveyed individuals (47%) plan to change jobs due to low wages. 78% of employers intend to maintain the current number of employees but are concerned about rising costs and an uncertain future.
Companies are trying to retain employees through diverse solutions rather than just financial incentives. In Poland, the number of foreign workers, mainly Ukrainians, is increasing, but their expectations regarding work conditions are rising, and many see Poland as a transit country. The problem of the insufficient number of Ukrainians in the workforce is becoming visible, especially in small towns.
Gi Group Holding, an international employment agency present in many
countries, has been operating in Poland since 2007.
EXPORTS
Lidl Polska reports record export of Polish goods worth PLN 6.5
billion
Włodzimierz Wlaźlak, president of Lidl Polska, announced that Polish suppliers exported goods valued at PLN 6.5 billion in 2023, marking a significant increase from the previous year’s PLN 5.4 billion. Lidl Polska has played a pivotal role in facilitating these exports, serving as the largest platform for agri-food goods. The exports encompass various products, including dairy, meat, milk, and meat products, with major markets in Eastern and Western Europe.
Lidl’s collaboration with approximately 300 Polish companies has contributed to the remarkable growth
of domestic enterprises. The network, operating over 850 stores in Poland, offers customers access to a wide range of over 440 products bearing the “Polish product” mark. Lidl Polska is part of the international Lidl group, comprising independent entities across Europe, collectively operating over 12,000 stores in 31 countries.
SOCIETY
GUS: eastern Poland will depopulate the fastest
By 2060, Poland’s population is projected to decline to 30.9 million, with Warsaw being the exception, expecting a population increase of 95,000. The overall decrease, nearly seven million from the current state, is evident across all regions except Warsaw. The Silesian, Łódź, and Lublin voivodeships will experience the largest absolute declines. Eastern Poland, particularly the Lublin and Subcarpathian voivodeships, will face significant depopulation. This trend is attributed to a continuous decrease in the natural growth rate, with forecasts indicating a substantial drop in births and a peak in deaths between 2042 and 2050.
SOCIETY 83% of Poles consider war in Ukraine threat to Poland
83% of Poles believe that the war in Ukraine poses a threat to Poland’s security, marking a 9 percentage point increase since November 2023, according to a CBOS survey. This level closely resembles the sentiment at the beginning of the Russian invasion. Concerns are notably higher among older, bettereducated, and more religious individuals. Additionally, support for accepting Ukrainian refugees remains relatively stable at 61%.
However, opinions are divided on NATO’s response to the conflict, with 39% considering NATO’s actions too cautious. Regarding a potential armed attack by Russia on NATO countries in the next 3 to 8 years, 57% deem it
IT/CLOUD
Polish cloud market set for strong growth
The Polish cloud data processing market is set for substantial growth, with a forecasted 24% y/y increase to PLN 4.8 billion in 2024, following a 34% surge last year, according to research firm PMR. The market’s value reached PLN 3.9 billion in 2023, marking a 34% rise. Projections suggest expansion, nearing PLN 13 billion by 2029. Although cloud services currently represent a small portion of total IT spending, PMR anticipates a steady increase. Polish companies’ accelerated adoption of cloud solutions emphasizes its role in digital transformation, with 73% planning to increase spending this year.
DOMESTIC Poland prepares measures to avoid migrant relocation mandate
Prime Minister Donald Tusk declared that Poland has devised strategies to shield itself from the migrant relocation mechanism adopted by the European Parliament. Tusk emphasized his intent to form alliances to prevent the implementation of the relocation or payment system for rejecting immigrants in Poland. Despite the Parliament’s approval of asylum and migration management regulations, with 322 votes in favor, Poland aims to avoid the relocation mechanism.
Tusk hinted at potential adjustments to the European Parliament’s political landscape post-election, suggesting a revisit of the migration policy. The government, under Tusk’s leadership, reaffirms its stance against forced migrant relocation, reinforcing Poland’s commitment to managing its immigration policies independently.
SECURITY
Prime Minister Donald Tusk pushes air defense
probable. The survey was conducted through mixed-mode methodology, involving face-to-face, telephone, and online interviews with 1,089 Polish adults in March 2024.
SOCIETY
Mental health sick leaves surge in Poland, pandemic impact suspected
Sick leave due to mental health issues surged in Poland in 2023, totaling 26.1 million days, a 9.5% increase from 2022. Stress and adjustment disorders were the primary reasons, with 8.9 million days taken off, predominantly by women. Experts attribute the rise
partly to pandemic-related stress and loneliness.
Depressive episodes and anxiety disorders also contributed to the spike, indicating heightened awareness and willingness to seek help. Women were more likely to seek assistance, facing challenges such as domestic violence and work-life balance issues.
Experts warn of continued increases in mental health problems, necessitating proactive measures from employers and the state to provide psychological support and improve psychiatric care funding. Comparisons with international data underscore the significance of addressing mental health concerns in Poland.
Prime Minister Donald Tusk emphasized the need for Poland to enhance its air defense systems to secure its skies, drawing lessons from recent conflicts in Ukraine and the Middle East. He highlighted Israel’s successful defense, where over 90% of rockets, drones, and missiles were intercepted by the Iron Dome system, compared to Ukraine’s 30% interception rate.
Tusk aims for Poland to achieve similar safety to Israel’s while avoiding Ukraine’s vulnerability. Poland plans to work with Denmark, Germany, and the UK to build an effective European anti-missile and anti-aircraft defense system. President Andrzej Duda supported strengthening Poland’s air defense through the Patriot system and collaboration with the US and UK but is cautious about joining a German-led Iron Dome project.
ECONOMY AT A GLANCE
2.6% in 2024
GDP growth rate in Poland
4.1% Into the future
Expected GDP growth rate in 2025
3.6%
Average food price increase
4.6% in 2025
Inflation because of electricity bills
5.3%
Unemployment rate in the next two years
12.3% Wage growth in 2024 (Polish Economic Institute (PIE)
Tomasz Bardziowski, the new president of the Warsaw Stock Exchange (GPW), anticipates a potential rise in Initial Public Offering (IPO) transactions in 2024, provided geopolitical conditions stabilize. Despite subdued IPO activity in 2023, secondary offerings (SPO) witnessed positive economic conditions. Notably, companies like Polenergia, CCC, and Atal raised significant capital for further development through the WSE Main Market. Bardziowski remains optimistic about attracting more IPOs to the GPW, reflecting on the resilience of the secondary market amid challenging global circumstances.
ECONOMY EU Accession boosted Poland’s GDP
Poland’s GDP per capita is 40% higher due to its EU membership, according to a report from the Polish Economic Institute. Central European countries saw an average increase of 27%, emphasizing the benefits of open borders and access to the EU single market. EU integration led to a five-fold rise in foreign direct investment and a surge in exports, positioning Central Europe as an export
hub. Despite challenges, the report highlights the importance of enhancing innovation, education, and quality of life across the region. Poland, Slovakia, and Lithuania lead in growth, with real GDP per capita substantially higher than without EU accession.
JOB MARKET Survey: employees expect change
Out of 10 surveyed employees, six prefer raises over other employer benefits, with over half desiring bonuses, and 30% opting for a four-day workweek, according to the study, "Polish Job Market Barometer." Companies accustomed to offering bonuses like holiday packages, private healthcare, or gym memberships now face shifting employee preferences.
Among respondents, 62% favor raises, 56% desire bonuses, and 31% seek commuting subsidies. Other expectations include remote work 2-3 times a week (18%), a four-day workweek (30%), and free workplace meals (28%). Currently, 37% utilize non-wage benefits, a 7% increase from last year.
FINANCE/STOCKS Allegro’s share price surges
Investment funds Permira VI and Cidinan have sold a 4.7% stake in Allegro, continuing their reduction of influence over the past year. Despite expectations of a decline due to the sale, Allegro’s
Quote of the month
share price soared by 6.3% to PLN 29.25 per share, increasing its market capitalization and making it the eighth largest company on the Warsaw Stock Exchange. The sale has prompted speculation about new shareholders. Allegro’s strong performance, with turnover exceeding PLN 242 million, has captured significant market interest, nearly half of the turnover of WIG companies.
DOMESTIC ECONOMY
Economic slowdown spurs layoffs
Recent trends show a surge in collective layoffs across Poland, notably in the northern regions. LM Wind Power Blades plans to lay off 200 employees in Goleniów, while concurrent layoffs in nearby Stargard raise concerns. TE Connectivity Industrial’s plant closure in Nowa Wieś Lęborska impacted 140 workers, adding to challenges in Pomerania. Michelin Polska SA’s halt of truck tire production in Olsztyn, with relocation plans, eased immediate concerns with job offers for employees. Although economic challenges drove workforce reductions, experts emphasize Poland’s resilient labor market, supported by low unemployment rates and foreign investments. However, long-term implications arose from automation and technological advancements, particularly affecting roles susceptible to automation.
“Our databases are increasingly secure, with a high level of cybersecurity. We’re implementing elements of artificial intelligence.”
Mirosław Skowron, CEO of PERN, emphasizing the importance of strategic preparedness amid unsettling developments in the east.
SEARCH FOR VALUE
Markets across Poland wait for investors to put a price tag on commercial real estate. With the absence of foreign capital, Polish investors are once again launching the discussion on domestic investment vehicles – REITs, to bring much needed liquidity into the market. Founder of Syrena Real Estate, Witold Zatoński, talks to WBJ about creating value in office schemes and market trends.
INTERVIEW BY MORTEN LINDHOLM PHOTOGRAPHS BY ANIA STARKEY
WBJ: Why did you decide to launch Syrena Real Estate?
Witold Zatoński: I would say it was a need to capitalize on the knowledge I gained throughout my career. I started as an attorney, focusing on M&A transactions and public equity listings in Poland during the early 2000s. Later I transitioned to working with GTC, where I spent a decade as a board member. I found myself immersed in the world of real estate, despite having little prior knowledge of the field. I’ve been part of transactions in various sectors, including office, residential, and retail, even in markets like Ukraine and Russia. Through my tenure at GTC, I witnessed both boom times and the aftermath of economic downturns like the financial crisis of 2007-2008. This experience exposed me to the intricacies of real estate investment and development, from successful projects to those that faltered. It was during this
period of growth and learning that I began contemplating the idea of starting my own business.
Since founding Syrena in 2016, we succeeded in attracting investors who shared our vision and believed in the potential of our business ideas. Today, our focus remains on executing deals and realizing our long-term ambitions, while also exploring opportunities to expand and create platforms.
Where do you see opportunities now?
In the past couple of years, the real estate market has faced challenges such as rising costs of capital, inflation, and change of tenant expectations, which have impacted our activity level.
Initially, our approach involved providing institutional services and acting as co-investors in projects. As our track record grew, we began attracting interest from international partners like PineBridge Benson Elliot and
Starwood Capital. This collaboration helped us expand our reach and establish credibility in the industry.
We have also successfully raised local capital, allowing us to invest in projects using funds sourced within the country. This represents a shift in our business model, as we aim to utilize locally raised capital to acquire projects independently, rather than relying solely on foreign investors.
What do you expect in the coming years?
Looking ahead to 2024, we are excited about the prospect of acquiring projects with our own locally raised capital – a significant milestone for Syrena. This new approach reflects our growing confidence in the Polish real estate market and our ability to attract investment domestically.
While our journey has been challenging at times, it has also been immensely rewarding. We take pride in the progress we have made by creating a company from scratch and remain optimistic about the future of Syrena as we continue to pursue our business vision.
How do you approach building value of a project?
I always sensed a divergence between where the industry’s priorities lay and where I believed they should be. Rather than solely focusing on profitability and efficiency, I wanted to infuse our projects with a deeper sense of purpose and community resonance. With a few exceptions the prevailing model seemed fixated on standardized developments, driven by maximizing returns with little regard for innovation or local context.
What fueled my passion for projects like HOP was the opportunity to challenge this paradigm. We aimed to introduce a new narrative to real estate development, one that prioritized thoughtful design, community integration, and lasting value. Our approach wasn’t about reinventing the wheel but rather about infusing famil-
A postmodernist gem
HOP represents a fascinating case study in our approach to value creation and revitalization. Initially, the building wasn’t exactly a jewel in Warsaw’s skyline; it was considered one of the least appealing office spaces in the city, and its discounted price reflected that sentiment. However, we saw untapped potential and an opportunity to reimagine its purpose.
It has a very strong post-modernist design. We could not undo that. There is no way to change the shape that is so large and solid. Instead, we decided to double down on its postmodernism and create an iconic postmodernist gem. Our strategy was to leverage the building’s strengths, such as its expansive atrium and sunny plaza, and transform its weaknesses into unique selling points.
At the time, coworking was a rising trend, but we recognized its limitations in providing stable, longterm leases. Instead of merely following the trend, we decided to integrate elements of coworking into the building’s design while ensuring the security and stability of traditional office leases.
Despite initial apprehensions from investors, we remained steadfast in our belief that our vision would pay off. And it did. The final result exceeded expectations, earning praise from tenants and the market alike.
HOP isn’t just about aesthetics; it’s about creating spaces that invite interaction and engagement with the surrounding community. Whether it’s through hosting events, providing inviting outdoor areas, or incorporating striking design elements, our goal is to foster connections and enrich the urban experience.
FOR MORE ON HOP
iar concepts with fresh perspectives and a commitment to excellence.
What did you change about the design of the projects you acquired?
Moving forward from HOP, our investment journey with our trusted partner PineBridge Benson Elliot led us to Diuna, a project that represented a departure from our previous endeavors. In 2019, our focus was primarily on architectural quality, tenant spaces, and the versatility of the building. However, Diuna presented us with a new set of challenges and opportunities.
HOP was all about improving design and functionality. Then, in 2020, just before the pandemic hit, we acquired a new project. At the time, it became apparent to me that ESG wasn’t just about saving the planet; it was also about your human sensitivity to the world you live in. I’ll admit, I was one of the strongest ESG skeptics. I thought it was all greenwashing and didn’t make economic sense. But as we started our project, I had to change my perspective.
I was forced to change my approach and embrace ESG as something that truly matters. As we delved into ESG, we realized it wasn’t just about improving design and functionality; it was about so much more. In Diuna we aim to limit energy consumption by 50%.
“
Investors are reaching a tipping point where they may need to reassess their positions and potentially cut their losses
At the heart of our endeavors lies a desire to contribute positively to the urban fabric and enrich the lives of those who inhabit these spaces. We see ourselves not just as developers but as custodians of the built environment, entrusted with the responsibility to create environments that inspire, uplift, and endure.
Working alongside creative minds and artists wasn’t just a strategic decision; it’s a reflection of our ethos. We believe in the transformative power of art and creativity to imbue spaces with meaning and foster a sense of connection. It’s about more than just aesthetics; it’s about creating environments that resonate emotionally and leave a lasting impression.
Did you apply the same approach in your next endeavor – Diuna (previously known as Marynarska Business Park?)
One of the key principles we applied to Diuna, much like HOP, was the idea of connectivity. We wanted to create a space that facilitated interaction and engagement, both within the building and with the broader community. This meant incorporating features like inviting outdoor areas, communal spaces, and amenities that encouraged people to pause, connect, and engage with their environment.
Both HOP and Diuna are examples of assets that some would once consider distressed, maybe even consider redeveloping the land completely. You chose to preserve the existing developments, why?
While some structures may appear outdated, the economic feasibility of demolition often doesn’t align with reality. In order to demolish a building that was developed e.g. 20 years ago, its value would have to be almost nil,
“
It will take a lot of thought to structure REITs properly to address the significant inherent risks involved
down to the value of the land itself. It’s rarely the case. A comprehensive analysis of office-to-residential conversions proves that there is often an alternative route, even in case of distressed properties.
Tearing down and rebuilding incurs substantial environmental costs, particularly in terms of energy consumption and CO2 emissions. Refurbishments, on the other hand, offer a more sustainable approach, minimizing environmental harm while preserving functional assets.
Refurbishing existing buildings also mitigates risks associated with groundup development. By avoiding the uncertainties and complexities of new construction, we ensure a safer investment with high returns while contributing to long-term sustainability.
Our approach as active investors is to create value through refurbishments and eventually sell the improved assets. Despite recent market challenges, we remain committed to this strategy.
Do you think we are about to see challenging times in the office market segment? Investment volumes have almost dried up entirely. The office market is indeed facing challenging times, primarily driven by two key factors. Firstly, regional office markets are experiencing significant pressure due to the nature of their tenant base, which largely consists of back office and Shared Service Center (SSC) operations. These tenants have adapted well to remote work arrangements, leading to downsizing and reduced demand for office space in regional cities. This has put consider-
able strain on these markets, resulting in a lack of spectacular transactions and downward pressure on pricing.
Secondly, the cost of financing has also contributed to the market’s challenges. With interest rates on new loans ranging from 5% to 6%, there’s substantial financial pressure on investors and developers. This has further dampened investment activity and exacerbated the market’s woes.
Why haven’t we seen a pricing correction in Poland yet?
The market in Poland has proven quite resilient. Investors here aren’t breaching lending terms, allowing them to weather market downturns and await recovery. This lack of distress means fewer forced sales, keeping banks and investors relatively calm.
Foreign investors, however, are reaching a tipping point where they may need to reassess their positions and potentially cut their losses. Despite these challenges, there are still attractive opportunities available, especially in regional cities where market dynamics may present unique investment prospects.
Where do you see the office market headed in terms of long-term value? While interest rates are expected to lower in the forseable future, they are unlikely to return to the historically low levels seen in previous years. This has prompted a reassessment of real estate valuations, with core yields settling above 5%, significantly different from the sub-5% levels seen in Western European markets.
In Poland, achieving a long-term top yield of 5-5.5% within the next 2-3
years could lead to a soft landing for the real estate market. However, compared to other European markets, Poland’s resilience to market corrections may make it less attractive to investors seeking higher returns. The driver of growth of the Polish market will not be distressed assets but a strenght of our growing and diversified economy.
Given the current challenges and market dynamics, how do you see commercial real estate’s role in Poland’s economy evolving?
The evolution of commercial real estate in Poland has been closely intertwined with its economic develop-
ment over the past 25 years. Initially driven by creating value for foreign investors through new developments, the market has transitioned towards maintaining the value of existing assets. This shift is particularly evident in cities like Warsaw, where fully builtup locations are becoming increasingly valuable.
The predominance of foreign capital, accounting for 98% of commercial real estate investments, presents a notable challenge for market stability. The market is simply more exposed to the moods of foreign investors.
While interest from Eastern European investors has increased, West-
ern investors remain largely absent. We have, however, seen activity from Czech, Hungarian and Lithuanian investors, who see no more risk in Poland than in their own markets. Their own proximity to Russia is why they are less likely to withdraw, which is also why Scandinavian investors have remained active in Poland.
In times when foreign investors leave a market, it usually falls onto domestic investors to improve market liquidity. Poland has not seen much domestic investment in real estate.
Could the recently revived discussion about REIT (Real Estate
Investment Trust) legislation bring that around?
REITs offer an avenue for Polish investors to access real estate assets with a reduced tax burden, akin to direct investment. REITS are a great idea. I myself initiated the first attempt to introduce REIT with WSE in 2015. But it will take a lot of thought to structure them properly to address the significant inherent risks involved. REITs are no child’s play.
It's very important that the conditions are right when you create REITs. The planned introduction of REITs during periods of high prop-
EXCLUSIVE INTERVIEW
erty valuations, such as five years ago in Poland, could have been disastrous for domestic investors. It could have potentially exposed investors to inflated asset values that subsequently declined. The decision by the National Bank of Poland to halt the REIT program at that time appears prudent in hindsight. Historically, REITs have been most successful when introduced during a down market. They infused much needed liquidity into it.
The second issue with REITs is: how to preserve their value over time. After all, unlike when you invest your own money, where you can reinvest the profit, in REITs you need to pay out the returns to investors on an ongoing basis, which leaves you with little cash flow and limited ways to grow. If REITs are introduced, it will be a great burden for Polish real estate professionals trying not to disappoint their investors. I am very worried that everyone seems to focus on liquidity it will bring to the market rather than how to make it safe and attractive for investors.
Is it easier to maintain value in residential real estate to rent?
The commercial real estate sector demands significant reinvestment to keep tenant bases through significant fit out commitment and rent frees. In Poland, this is especially true, with high competition from new developments and market customs. This necessitates a cautious approach to investing and managing assets to ensure sustained cashflow levels. Residential real estate operates differently. As long as apartments continue to rent well, it's much easier to maintain and grow cashflow.
Do you expect to see more investment interest in the residential market in the future, e.g. through PRS?
The Private Rented Sector (PRS) in Poland is still relatively new, prompting various opinions on its return on investment (ROI) potential, especially considering factors like cur-
rency fluctuations and interest rates. We remain confident that it offers substantial value for investors. While the current inventory of PRS assets is limited, there is significant interest from international investors, although their readiness to invest remains constrained. Our operating experience with Habitu platform is very positive.
In comparison to other real estate sectors like Purpose-Built Student Accommodation (PBSA), PRS appears more attractive and robust. Over the next couple of years, we anticipate that PRS in large Polish cities will outperform markets in Western Europe and elsewhere, making it an appealing prospect for foreign investors.
With our own capital reserves, not solely reliant on third-party funding, we are actively exploring opportunities in PRS, office spaces, green office conversions, and other avenues that hold promise for investors. Importantly, we are focused on ensuring a clear exit strategy for any investment undertaken.
“
Over the next couple of years, we anticipate that PRS in large Polish cities will outperform markets in Western Europe
Groundbreaking ESG refurbishment
Diuna, formerly known as Marynarska Business Park, was a significant undertaking. It was initially built in 2007 and was one of the largest office projects in Poland, boasting 40,000 square meters.
The project was characterized by its size and an abundance of parking spaces, with 1,200 spaces underground. However, over time, the value of the building declined, and each subsequent transaction saw diminishing returns. The initial investment of around €180 million dwindled, with the last transaction falling well below €100 million.
We recognized the need for change and set out to transform the building’s purpose. We realized that the excessive focus on cars had to shift. Instead, we prioritized public transportation and created a park where parking lots once stood. This transformation aligned with our commitment to ESG principles.
The removal of the parking spaces allowed us to create conference areas, fitness facilities, and other amenities. Also, we reduced the heat island effect caused by the parking lot, leading to
a decrease in the temperature in Diuna courtyard by around 15-18 degrees Celsius during summer months.
We also focused on improving the building’s energy efficiency by revamping outdated systems. Our goal is to reduce energy consumption by 50%, a substantial step toward sustainability.
This project represents a groundbreaking approach to office refurbishment, setting a new standard for the industry. It proves that ESG initiatives not only benefit the environment but also yield tangible economic returns.
FOR MORE ON DIUNA
Virtual reality meets real needs
To train and recruit drivers, Raben Group uses innovative technologies – VR Truck Simulator
Trying out technological innovations is an everyday occurrence at Raben Group. The fleet, warehouse infrastructure and IT systems used in the company not only meet the highest standards but in many cases set the direction for the entire industry. This is also the case with the VR Truck Simulator, an innovative device that has recently started supporting the recruitment and training of truck drivers who work on domestic and international routes every day.
Virtual reality meets real needs
VR technology itself is no longer considered a novelty. Perfected over several decades, it is most often used in the entertainment industry (in the form of realistic computer games), culture (e.g. by enabling one to “step into” the paintings of famous painters), or tourism (allowing one to “visit” monuments currently in ruins). It is all the more noteworthy that its origins (dating back to the 1950s) were in the training sector—it was when the first flight simulators were developed. From today’s perspective, we would describe them as imperfect; however, at the time, they were the only safe way to train future pilots (and later astronauts).
The Best Truck Driver project returned to its roots when constructing the VR Truck Simulator. Our experts at Raben Group discovered it while testing another product. Having seen the potential of the device, they entered into a partnership with its developers to best meet the needs of the transport and forwarding logistics (TFL) industry. Specifically, for training and testing the skills of truck drivers.
A comprehensive, safe and ecological driver’s test
Obviously, obtaining a licence to drive a truck requires knowledge and practical skills, but it is rare for a trainee to be confronted with every potentially dangerous situation during an exam, or even throughout the course of learning. In addition, an experienced driver, of 20 years, smay have developed bad habits, translating into either less safe or lessergonomic driving. The VR Truck
Simulator addresses these limitations by providing a platform to test and improve driving skills in various scenarios—though not all scenarios can be predicted with certainty.
The simulator accurately depicts the interior of a Raben truck and features the original seat and steering wheel. The actuators of the platform captures the haptic experience of the ride. Observation of conditions on the virtual road is facilitated by the use of VR goggles or three LCD screens. The scenarios take into account different vehicle and road types,including motorways, urban areas and even mountain roads. Drivers have the opportunity to assess the accuracy and speed of their reactions under different circumstances, such as day and night driving, as well as in windy, snowy, rainy and foggy conditions, as well as in varying traffic volumes. The simulation also takes into account variants for moving with a semi-trailer or swap body, as well as maneuvering in parking lots and terminals.
The VR Truck Simulator can be used in many situations. It enables the creation of reliable and tailored recruitment assessments and facilitates efficient onboarding processes, introducing new drivers to the company’s specific work environment. The VR Truck Simulator is also an invaluable training tool, allowing drivers to improve their skills even under extreme conditions, without risking harm to themselves or others, without generating exhaust or noise, and without the risk of damaging expensive equipment. There’s no denying that the VR simulator is an intriguing innovation, poised to promotethe truck driving profession, which consistently faces shortages, as indicated by the Occupational Barometeryear after year.
“The VR Truck Simulator is an ideal tool for us for many reasons. Not only does it streamline work and respond to practical needs in the area of recruitment and training, but it does it in a way which is close to Raben Group’s idea of operation: innovative, ecological, economical and safe,” says Magdalena Szaroleta, Sales Director at Raben Transport.
The VR Truck Simulator addresses limitations in driver training, providing a comprehensive, safe, and ecological solution for the transport and forwarding logistics industry
Mobile training centre
Use of the simulator is not limited to one location. It is fitted inside a container so that it can be transported conveniently and without problems. Initially, it will serve mainly in the company’s Polish and Czech depots. However, if it proves successful (as indicated by pilot tests conducted in 2023), it is very likely that further units will be sent to other locations.
The implementation of the simulator coincided with the creation of a training team at Raben Transport, for whom the device will be a huge support. The VR Truck Simulator will allow new and experienced drivers alike to prepare for emergencies, including rare but highly dangerous situations. In real-life scenarios, while one may theoretically know the safety procedures, the speed of events can lead to confusion and stress, making it easy to forget even basic safety rules. Regular training under realistic conditions, facilitiated by the simulator, is crucial for developing coping mechanisms against stress.
However, the use of the VR Truck Simulator is not just limited to preparing drivers for road emergencies. It is also an effective tool for learning new systems and technologies used in trucks,as well as systems that are not completely new but used infrequently or incorrectly. The device will help in training drivers to drive economically and ergonomically, resulting in health, financial and environmental benefits. Thus, it can be said with confidence that the solution introduced by Raben will not only benefit the company itself, but also society as a whole.
Kraków’s tech hub future
Kraków, a well-established tech hub in Poland, attracts international companies with its highly skilled workforce, academic excellence, and quality of life. WBJ sat down with Katarzyna Wysocka, Kraków’s Director of the Department of Entrepreneurship and Innovation to talk about the city’s future as an investment destination.
Photographs clockwise from above: City view, (photo by Ela Marchewka), ICE Kraków Congress Center, Unity Center, Tertium Business Park, Collegium Novum UJ
PARTNER
WBJ:
Kraków has been a well-established investment destination for multiple global corporations.
From Cummin’s Master Rebuild Centre for high-powered engines, to a number of new R&D centers for global brands, international companies are looking to Kraków as the best location for hightech and highly skilled jobs. What do you think drives the city’s success?
Katarzyna Wysocka: When it comes to its economic success, Kraków’s primary assets are its people, namely its welleducated workforce and professionals, which is largely what attracts businesses and investors. Multinational corporations choose Kraków not because it is cheaper, but because of the value it offers.
Numerous corporations develop their R&D centers in Kraków, with access to specialists and experienced managers, as well as an abundance of graduates in specialized fields of study. Kraków as an academic center is continuously developing a best-in-class and highly skilled workforce. New fields of study are being launched to meet market needs.
At the same time, given unfavorable demographic trends, Kraków also attracts students and talent from other parts of the region, as well as from abroad. Kraków is still one of the few Polish cities with a growing population.
What makes the city a good place to live?
The city provides a high quality of life, offering an array of cultural, educational, sports and recreational opportunities, while ensuring a sense of security. Kraków offers high-quality municipal services and efficient public transport, and is conveniently located near transport routes, with a modern, international airport. On top of all this, Kraków enjoys a good global reputation, recognized as a business and cultural center.
Which industries and sectors are the most important for the city? Kraków has long been one of Poland’s top tourist destinations, especially for international travelers.
Kraków's primary assets are its people—its well-educated workforce and professionals—largely attracting businesses and investors for the value it offers, not just cost efficiency
Tourism has traditionally played an important role in Kraków’s local economy, but we strive to support economic diversification. As such, a significant portion of the city’s income is still derived from manufacturing, as well as construction, creative industries, education and culture.
Both the local economy and residents have coped very well with the challenges of the pandemic and war crises. Through diverse and complementary activities of public and private institutions, academic centers and social organizations, Kraków is steadily developing its potential, particularly in the modern technologies.
In addition to hosting numerous multinational corporations over the years, the city fosters an ecosystem that supports innovation and entrepreneurship. This is evident in the rapid international recognition achieved by successful startups like Estimote, Brainly, Callpage, Synerise and Silvair, which are already well-known brands.
Indeed, Kraków has gained a reputation as a vibrant start-up center. What specific tech niches are located there? Kraków is one of the main centers for tech and innovation companies in Poland, with many firms in this sector establishing their headquarters or branches here. This has accelerated the already dynamic pace of economic development of the city. Some notable ex-
amples include Motorola Solutions, IBM, Google, Cisco Systems, EPAM Systems, and Comarch.
In the life science sector, in biomedical and pharmaceutical research, Selvita is a leading player. As one of Poland’s largest biotech companies, Selvita is a key contributor to the Life Science Cluster, fostering cooperation and knowledge exchange among various partners.
Technology transfer centers operate at all major universities in Kraków, where innovative ideas and technologies are generated. This not only contributes to a highly skilled workforce across sectors but also enhances Kraków’s competitiveness in the global business landscape.
How do you see Kraków’s future as an investment destination? What are your strategies to attract the next largescale investment projects?
One of the city’s strategic goals is to develop a knowledge-based economy. This approach refers to an economic transition where knowledge, information, innovation and human skills are the main sources of growth and competitiveness. Key aspects such as a highly skilled workforce, and expertise, research, infrastructure facilitating technological development, and creativity are crucial.
The development of Kraków’s economy hinges on the dedication of top-ti-
er research and business professionals, alongside the ever-expanding accessibility of scientific facilities. Intersectoral cooperation between science, business and the local government, as well as the promotion of innovation, are accompanied by a well-tailored educational system.
Fostering the development of both a knowledge-based economy, and more traditional sectors focused on the manufacture of material goods, is important in view of the principle of sustainability.
Kraków promotes smart city solutions while equally supporting small and medium-sized enterprises, art as well as protecting the environment, improving air quality, expanding green areas and adapting to climate change. We also invest in quality education, research, and technology transfers. All while keeping an open and cooperative environment, because we know how important it is for the development of the city.
In a highly competitive global market, Kraków still attracts investors, young people and professionals from all over the world, offering them the opportunity to develop their talent here. Our city is a modern metropolis of international importance, focusing on innovation and new technologies, which not only stimulate the economy but also translate into a high quality of life.
What are Kraków’s priorities and plans when it comes to the direction of the city’s urban development plans?
On the one hand, the priorities of Kraków’s development plans reflect the city’s current needs, but on the other, they rely on the strategic development goals as provided for in policy documents, such as zoning plans, city development strategies or more detailed urban renewal programs.
The fundamental principle is to balance the directions of development: in Kraków, when planning and implementing development goals, we consider environmental, social and economic aspects, resulting in the promotion of public transport, energy savings, protection of green areas and preservation of cultural heritage, while continuous-
PARTNER SPOTLIGHT
Kraków fosters an ecosystem supporting innovation and entrepreneurship, evident in the rapid international recognition achieved by successful startups like Estimote, Brainly, and Callpage, positioning it as a vibrant start-up center
ly strengthening social integration and supporting all initiatives aimed at building social ties. We engage residents in this process in order to meet their needs and preferences.
With regard to urban infrastructure, we focus on the further development of roads, bike paths and the public transport network, as well as the modernization and development of power, sewage and heating systems.
How do you address the city’s housing needs?
An important challenge for our city is, of course, the need to develop residential areas and facilitate the construction of more housing. Combined with the polycentricity principle and the preservation of multi-functional districts, the “New City” project revitalizes the concept of a modern, multifunctional district that is pivotal for Kraków and for neighboring municipalities’ future growth.
How do you balance it with the commercial and office functions?
The need to create spaces with new residential, commercial and office functions seems obvious. In addition, the development of industrial and business areas, along with the infrastructure required for the growth of the tourism, recreation, culture and leisure sectors, are among the main goals of local companies, such as Kraków Nowa Huta of the Future, Arena Kraków and Kraków
Development Agency.
Currently, we are also preparing the Kraków Program for Supporting Entrepreneurship and the Economic Development of the City for 2024–2029, which – within current legislation and effective opportunities – provides for the systematic promotion of entrepreneurship. The vast majority of economic operators are small and medium-sized enterprises, and it is these companies that strongly influence economic development, including employment growth. Economically active cities are known to have lower unemployment, higher income, and are more successful in attracting outside investors.
Katarzyna Wysocka
Director of the Entrepreneurship and Innovation Department of the Kraków City Hall
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Polish architectural prowess shines at the
POLAND EUROPE’S FUTURE
POLAND HAS SHOWN REMARKABLE RESILIENCE AMIDST HEADWINDS AND MULTIPLE CHALLENGES. WE HIGHLIGHT THE AREAS THAT SHOW THE BIGGEST POTENTIAL AND ATTRACT THE MOST INTEREST: TECHNOLOGIES, GREEN ENERGY AS WELL AS POLAND'S DRIVEN AND SKILLED WORKFORCE.
Karlowicz Philharmonic hall in Szczecin, recipient of the prestigious Mies van der Rohe Award in 2015.
BECOMING THE SCHOOL OF CHOICE
Tom McGrath, Principal, British Primary School of Wilanow, Reflects on the changing role of school principals in international education, highlighting the need for diverse skills beyond education.
Interview by Morten Lindholm
WBJ: How has a school principal’s role changed in your 25 years in international schools?
Tom McGrath: I have had the honour and privilege of leading schools in Poland, Portugal and in The Cayman Islands and each role was somewhat different given the age, character and focus of the particular school. In addition to being an educational leader, a principal also needs a certain commercial understanding, a knowledge of risk management, certainly construction and project management; I have picked up a working knowledge from various tasks and experiences. Perhaps the most important change is that the principal is now the conductor of a very large orchestra with an aptitude to see the whole picture and with the ability to guide and mentor colleagues. Thus communication skills, empathy and motivation are the key assets.
You first worked in Poland in the late 1990s in international education. How has this sector evolved?
One needs to consider that private edu-
cation in Poland was a novel concept in the 1990s as the communist regime held a monopoly over educational provision until 1989. Among the first tentative steps into the unknown were the pioneering international schools who defined themselves as providing a British education primarily for the expatriate British families attached to international companies and brands. These families had arrived in Poland due to a shortage of skills in some executive roles especially in newly established subsidiaries of international brands.
Now international schools have a greater diversity of families, local, locally based international staff and a smaller percentage of the classic expatriate. The other main change was that in the 1990’s Warsaw and Poland were seen as much more of an unexplored and unknown destination. This has changed completely with Warsaw now a far more prestigious, safe and valued place to live. This is true for attracting foreign investment but also for attracting high quality teaching staff. There are also far more embassies and many of
these embassies have grown to respond to growing trade links. International schools respond to this changing marketplace.
In the 1990s, Miasteczko Wilanów did not exist. Do you remember it from this time?
Back then, I explored this whole area of rural lanes and agricultural land on two wheels. The pace of change into such a wellplanned and thoughtfully designed town is stunning. We will soon have a completed tramline that will connect us to the rest of Warsaw. Wilanów has become a very desirable place to live, to work and to study. It remains a relatively easy commute to the City Centre or Mokotów business district and we are very fortunate in our location.
How has British Primary School of Wilanow grown across your 7 years? I sometimes joke that we have more
Visualizations of the upcoming extension of BPSW, slated to open its doors in the Fall of 2024
We wish to be the School of Choice for the internationally minded community in Warsaw. We are well on our way to achieving this distinction “
employees now than we had pupils back in 2017. The school began in 2015 and was still a fledgling enterprise on my arrival. We have now grown to over 350 pupils. We have added many facilities. We have gained a reputation for academic excellence and are now about to expand.
Tell us about the construction work. We have been very fortunate to acquire an adjacent plot of land. This allows us to expand in two directions and our Lion has grown wings. We are opening a new preschool building, with 9 classrooms in September this year as well as a new Upper primary building with 8 classrooms. We have a very large sportshall being finished and we will have a number of outdoor sports facilities. These new wings will allow our school to grow to 500+ pupils. We’ll have a number of specialist teaching spaces and custom designed teaching spaces for our youngest pupils.
How has joining International Schools Partnership improved your school?
We were the first school in Poland to join ISP and we were attracted by its educational philosophy, its reputation and its eagerness to listen and interact with us. With ISP we accelerated construction plans and networked with regional teams and schools in Europe. We have also enhanced professional development. Overall, we’re really benefiting from this collaboration.
What next in Warsaw and in Poland?
We wish to be the School of Choice for the internationally minded community in Warsaw. We are well on our way to achieving this distinction. We’re very confident that we will continue to flourish in Warsaw.
British Primary School of Wilanow Prymasa Augusta Hlonda 12, bsw.com.pl
AI IN CHARGE OF ENERGY SECURITY
R-GRID: Artificial Intelligence for Power Grid Security – a project supported by NATO under the Science for Peace and Security Programme
Following Russia’s attack on Ukraine, NATO and its allies became aware of the vulnerability of Europe’s energy security and therefore resolved to do something about it. “In the R-GRID project, we will build tools to identify critical elements of the power grid and to increase their resilience and stability,” said Maciej Kluczyński, President of the Polish Society for National Security, serving as NATO Country Project Director.
The R-GRID project will focus on building tools to identify critical elements of the power grid that need reinforcement and stabilization, “Russian assaults on Ukraine’s power
infrastructure inflicted significant harm, leading to disruptions in energy supply and the adoption of unconventional operational measures within the power grid system,” said Dr. Andrian Prokip, Director of the Energy Program at the Ukrainian Institute for the Future and serving as Partner Country Project Director. Repair crews struggle to restore network functionality, grappling with a scarcity of specialized equipment.
Aligning the Ukrainian power system with European counterparts has played a crucial role in stabilizing it. Nevertheless, additional measures are imperative to fortify the power systems against diverse forms of attacks.
Protection against blackouts
Contemporary energy systems are susceptible to various forms of attacks. “The task of the R-GRID simulator will be to support strategic decision making regarding the identification of critical components of the power grid and modeling improvements to energy infrastructure elements,” said Dr. Tomasz Michalak, leader of the “AI for Security” research team at IDEAS NCBR, codirector of the R-GRID project.
In April 2023, Finland joined NATO. Finland’s border with Russia makes it particularly vulnerable. There are two underwater energy connections to Estonia, whose power system, much like Lithuania and Latvia, are also connected to Russia’s power system. “The war in Ukraine shows us that energy infrastructure is one of the main targets of Russian attacks. Therefore, I believe that the R-GRID project will contribute to improving the energy security of NATO allied countries and partner states,” said Dr. Päivi Mattila, Director of the Security Research Program at Laurea University of Applied Sciences, co-director of the R-GRID project.
The R-GRID system will utilize AI to prevent disruptions in key areas to prevent blackouts. R-GRID simulations help identify critical elements of the grid and their influence over the system as a whole. This analysis takes into consideration not only traditional power supplies but renewables as well.
The project is anticipated to take two years and will pave the way for the implementation and utilization of R-GRID in practice. This is yet another area in which AI is being implemented in order to safeguard NATO assets, and one which is of particular interest to those countries sharing borders with Russia and Belarus.
WHY DO COMPANIES NEED AN ENERGY STRATEGY
Energy efficiency, cost optimization, changing legal regulations, and market expectations are on every company’s agenda. A wellconstructed energy strategy is necessary.
Planning is crucial. Separating from coal is essential. Decarbonization goals are aimed at both large energy-intensive corporations and small and medium-sized enterprises. This year, reporting obligations on ESG have been imposed on the largest companies. Over the next three years, 70% of small and mediumsized enterprises listed on the stock exchange will have to file ESG reports. Eventually, every company will have to create an energy strategy. Anticipating and executing ahead of time helps companies maintain a competitive edge.
“An energy strategy is an action plan that enables a company to effectively manage energy efficiency, resources, and the development of new technologies in the energy sector. However, it primarily helps monitor the company’s impact on the environment,” says Justyna Wysocka-Golec, leader of the ESG, decarbonization, and diversity team at KPMG in Poland.
Planning an energy strategy is crucial for companies to efficiently manage energy consumption, resources, and technology development while caring for the environment. Reducing CO2 emissions is not only necessary from a legal standpoint but also as a way to achieve financial savings. It’s also attractive to both customers and investors. Being flexible, considering the dynamics of the market and its technological/regulatory changes, helps meet both economic and environmental goals.
The cost savings resulting from zeroemission initiatives are intricately tied to long-term energy consumption planning. Maximizing revenue while concurrently minimizing costs remains the overarching objective for companies of all sizes.
EU mandates and zero emissions
The impetus for change stems either from EU mandates or a desire to offer zero-emission products. Customer, stakeholder, or investor expectations exert influence as well. By formulating energy strategies, companies foresee multiple paths forward, enabling them to
assess the business environment and evaluate investment opportunities in real-time.
Embarking on the journey to crafting your own energy strategy, as suggested by the KPMG expert, is akin to charting a course through a dynamic landscape filled with opportunities and challenges alike. It all begins with a thorough assessment of your company’s resources, current efficiency levels, and available energy sources. Delving deeper, it’s crucial to scrutinize your consumption patterns while considering the environmental factors that influence them. But it’s also important to remember to explore available technologies and alternative energy sources while keeping an eye on competitors.
Only after traversing these initial checkpoints can companies begin to chart their course forward, both in the short and long term. The effectiveness of their strategy can then be gauged by key performance indicators such as ROI, emission reduction levels, and shifts in employee attitudes.
Constructing an energy strategy is not a one-time endeavor; it’s an ongoing process that demands adaptability to market shifts, technological advancements, regulatory changes, and evolving customer demands. However, the dividends reaped from its effective implementation extend beyond mere economic gains, encompassing environmental and social benefits as well. While the journey may be fraught with complexities and challenges, the rewards far outweigh the efforts invested in its development and execution.
DIGITAL SERVICES ACT
The first weeks of full implementation of the Digital Services Act (DSA), which came into effect in mid-February in all European Union countries, brought many new challenges for businesses. Consequently, a series of questions and doubts arose. To support Polish entrepreneurs providing access to content, products, and services in this initial phase of the new regulations, the DSA Group at IAB Poland addresses the most frequently raised issues. Who is subject to the new regulations, how
do EU provisions relate to Polish legal norms, and how does liability for published content change?
“The introduction of the Digital Services Act is primarily to create a safe, predictable, and trustworthy online environment. For digital entrepreneurs, this means the need to adapt to legal regulations that harmonize the conditions for intermediary services, across the entire EU. IAB Poland has been involved in the work on the act at both the national and EU levels,” said Włodzimierz Schmitd, President of IAB Poland.
Who does the DSA apply to?
The Digital Services Act primarily pertains to intermediaries involved in accessing userposted content on the internet.
Lidia Zamecka from the DSA Working Group at IAB Poland notes, “New regulations raise various concerns not only regarding the subjective scope of the Act but also fundamental concepts such as hosting services, intermediary services, or online platforms.”
These new regulations enable more effec-
Experts at IAB Poland answer questions about the Digital Services Act.
tive oversight of global services and search engines. Many intermediaries are uncertain about whether the DSA applies to micro and small businesses. The majority of obligations stemming from the Act do not extend to them. However, smaller entities must align their regulations with the new provisions, implement a notice-and-action mechanism for addressing illegal content, and furnish users with notifications and justifications for content moderation decisions. Furthermore, the provisions of the Digital Services Act encompass intermediaries from outside
New regulations raise various concerns about hosting services, intermediary services, or online platforms
the EU offering services to users within the European Union.
New obligations, new responsibility
The Digital Services Act does not fundamentally change the rules of liability of online intermediaries for content transmitted by users. The regulation does not impose a general obligation on providers of intermediary services to monitor content to verify whether it’s illegal or violates the terms of
service. There is an obligation to moderate illegal content if it’s reported. The Act also imposes a range of reporting obligations on various categories of providers, excluding micro and small businesses.
“Among the 34 most frequently asked questions are doubts about what constitutes illegal content under the new provisions, how one defines content that violates the terms of service, what content moderation entails, and what the notice-andaction mechanism looks like. Entrepreneurs are also interested in the consequences of non-compliance with the DSA,” says Lidia Zamecka from the DSA Working Group at IAB Poland.
DSA and existing legal frameworks
Many entrepreneurs wonder whether the Digital Services Act affects other regulations governing the digital sector, whether it requires implementation into Polish law, and how it relates to existing laws and directives. “The DSA is an EU regulation that is fully binding on each member state. However, the Act will be supplemented by a so-called competence act, which will define, among other things, the rules for the functioning of the supervisory authority for compliance with DSA regulations and other procedural issues,” explains Xawery Konarski, Head of the DSA Task Force at IAB Poland.
The e-commerce directive remains in effect, with the Digital Services Act (DSA) only revoking a limited number of its provisions governing the liability of online intermediaries. The new regulations do not annul key existing legal frameworks, including GDPR regulations, the Platform-to-Business regulation, EU copyright law, or consumer protection and product safety regulations.
CEE INVESTORS EYING
RESIDENTIAL MARKET
Poland’s institutional rental housing market is set for significant growth. Challenges include high construction costs and interest rates, yet growing demand for student and senior housing offers investment potential.
The nascent institutional rental housing market in Poland is poised for a remarkable ascent, offering a promising glimpse into the future of residential investment. A recent study by CBRE, dubbed the “European Investors Intentions Survey 2024,” reveals that 24% of investors across Central and Eastern Europe are eyeing opportunities in the residential sector. However, despite this burgeoning interest,
institutional rental properties currently constitute a mere one percent of the housing inventory in Poland’s largest cities.
Nevertheless, the winds of change blow favorably for this budding market, propelled by the need for housing. CBRE experts anticipate a substantial uptick in household numbers across major urban centers, with projections suggesting an average increase of 1.7% over the next half-decade. Warsaw, could see a surge in household growth of up to 3.2%.
Home ownership falling
Yet, beneath the surface of this housing revolution lies a complex tapestry of challenges and opportunities. Spiraling construction costs have fueled double-digit price hikes in recent years, casting a shadow over housing affordability. Agnieszka Mikulska, a seasoned expert in the housing market at CBRE, underscores the gravity of this situation, warning of looming financial constraints akin to those witnessed in the aftermath of the 2009 economic downturn.
“The expense of building a square meter in a multifamily building have increased by over half in the past seven years. We estimate that construction costs will significantly slow down. But in Warsaw, we expect inflation to reach reach 5 percent. The availability of
owner-occupied housing has been reduced by higher interest rates on loans, which we have not seen since 2009,” she said.
Rent it
As interest rates on loans remain high, the allure of traditional homeownership dims, paving the way for a potential resurgence in rental demand. Interestingly, the rental landscape has undergone a significant transformation following the influx of refugees from Ukraine in 2022, leading to a more balanced market dynamic.
In this evolving ecosystem, the enticement of institutional rental housing gains further traction, particularly in segments catering to students and seniors. With a burgeoning student population and a dearth of modern, private facilities, the demand for student housing continues to soar. Similarly, the budding senior housing sector holds immense promise, buoyed by Poland’s rapidly aging demographic.
As the housing market veers towards transformation, investors and stakeholders alike stand poised to navigate the choppy waters of change. The journey ahead promises both challenges and triumphs, with the potential to reshape the very fabric of Poland’s residential landscape.
INVESTMENT TO PICK UP IN H2 2024
Investments in commercial real estate are set to accelerate in Poland. Challenges include high inflation and interest rates, but strong fundamentals and tenant activity sustain the market’s resilience.
This year, investments in commercial real estate in Poland will gain momentum and may even increase by 10 percent year-onyear, according to the “Market Outlook 2024” report by CBRE. The trend will be particularly visible in the second half of the year in the industrial, logistics, and residential sectors. In the office market in the largest cities in Poland, tenant activity will maintain, with retail being market stimulated by lower inflation and growing consumer purchasing power. Geopolitics and high base inflation are risk factors working against growth.
From a broader perspective, the economy has nowhere to go but up. Commercial real estate looks to be in a good position for an upward tick, however, there are negative winds that inhibit development. The downward trend of GDP growth, high inflation and interest rates, put a crimp on forward momentum. Yet there remains hope for an end of year recovery.
Where it’s at
“According to the our investor survey, Poland ranked third among the top ten countries expected to have the highest return on real estate investment in 2024. Additionally, Warsaw was the only capital in Central and Eastern Europe that made it to the list of the ten most attractive European investment destinations,” said Katarzyna Gajewska, Director of Market Research and Analysis at CBRE.
According to CBRE’s forecasts, in 2024, the volume of investments in Europe as a whole, including Poland, may increase by up to 10 percent annually. The most desired sectors will be industrial and logistics, as well as residential, as indicated by over one-third of respondents surveyed in the CBRE “Investor Intentions Survey 2024.”
Stable warehouses
The industrial-logistics market has proven to be one of the most stable, thanks to solid fundamentals. Tenant activity in Poland during this period exceeded expectations, with 5.7 million square meters rented. This is the third-highest value in the market’s history, despite a 15 percent decrease compared to 2022.
LOKALE IMMOBILIA
COMMERCIAL
Cushman & Wakefield implements energy optimization system at The Warsaw Hub
Cushman & Wakefield has introduced an energy management and optimization system at The Warsaw Hub, aimed at reducing CO2 emissions, conserving energy, and cutting costs for tenants. The initiative aligns with the digitization of the real estate sector, focusing on precise data collection and processing to optimize building functions and meet energy performance directives.
Utilizing the BMSCare solution, key modules like the Virtual Manager and Virtual Technician were integrated into The Warsaw Hub, enabling advanced monitoring, control, and data analysis. This system offers real-time energy consumption monitoring, identifies areas of high usage, and detects device operation errors. Artificial intelligence enhances the system’s capabilities, finding optimal operating points and improving building performance.stem enhances ESG assessments, simplifies data preparation for reports, and demonstrates measurable savings even with partial optimization module deployment.
LOKALE IMMOBILIA
Shopping malls aren’t dead
A new study by GfK and PRCH reveals shopping centers are thriving in the age of online shopping. The report finds that 61 percent of shoppers use shopping centers in their online shopping journeys. This includes “reverse ROPO” (checking in-store before buying online), click-and-collect (picking up online orders), and even in-store returns of online purchases. Remarkably, these omnichannel behaviors account for 16 percent of all spending in shopping centers.
The study proves stores within shopping centers are highly effective. Across most product categories, over half of visits lead to a purchase. For clothing, the conversion rate jumps to a whopping 64 percent. Despite online shopping’s rise, Poles report spending over 60 percent of their shopping budget in physical stores. E-commerce captures just 1-20 percent. This highlights the enduring appeal of physical shopping experiences.
The study, the largest of its kind in Europe, underscores the immense potential of shopping centers. They offer brands a crucial growth space with high conversion rates and strong customer spending.
RESIDENTIAL
New housing developments in Warsaw: Harmonia Mokotów and Przy Fortie
Dom Development has initiated apartment construction in the second phase of the Harmonia Mokotów estate, located at the junction of al. Polska Walczej and al. Józef Beck. Additionally, they’ve commenced the Przy Fortie project in Ursus.
With a focus on achieving record sales, Monika Perekitko, a member of Dom Development’s management board, highlights their commitment to expanding their offerings. The company has begun construction on 337 units in two Warsaw districts since March, with nearly 700 units initiated since the start of the year.
The Przy Fortie estate in Ursus comprises five-story buildings, totaling 124 apartments, featuring various room configurations. Meanwhile, Harmonia Mokotów’s second stage involves three buildings with 196 apartments and 17 service premises. Apartments in both developments start from PLN 11,900 and PLN 15,400 per square meter, respectively, with completion targeted for 2025.
RESIDENTIAL
Warsaw studio apartment prices set new records
Recent data from Otodom Analytics revealed a significant milestone in Warsaw’s real estate market: studio apartment prices on the secondary market surpassed PLN 20,000 per square meter for the first time. This marks a 3.4% increase from January and a staggering 32.4% surge compared to February 2023. Similar trends were observed in Kraków, Gdańsk, Wrocław, and Poznań, with prices soaring over 20% year-onyear.
The rise in micro-studios and microapartments is fueled by dwindling housing availability, as highlighted by the Housing Affordability Index. This scarcity, compounded by increased transaction costs and limited creditworthiness, leads many Poles to opt for smaller, more affordable accommodations. Despite the steep prices, demand remains robust, especially among singles, students, and couples, as these compact units offer affordability and convenience.
RETAIL
Jysk expands lease at Galeria Rumia
Jysk, renowned for its interior design offerings, has extended its lease at Galeria Rumia, increasing its space to 1.3 thousand square meters. The enhanced store will adopt the 3.0 concept, featuring three model rooms showcasing seasonal arrangements and a refreshed mattress studio with advisory services. Situated on the ground floor of Galeria Rumia, the store promises customers an immersive shopping experience. Galeria Rumia, centrally located at ul. Sabata 1, spans 39,000 square meters and is owned by GT, managed by IMV Polska. Jysk, with Scandinavian origins, operates over 3,300 stores across 48 countries, including approximately 300 in Poland.
“GROEN” MEANS GREEN IN DUTCH …
… whilst Ghelamco embodies perfectly executed real estate investments. This could only result in one thing –creative approach to modern residential housing units, born out of a pursuit of functional solutions, nested in breathtakingly designed greenery. All in Konstancin Jeziorna, all in the immediate vicinity of the city.
Too good to be true? Independence, freedom, greenery, safe neighbourhood right on the border of Warsaw – for the price of a city apartment? Not at all. The perfect mix of unique location and creative estate solutions allow for price points, starting at 1 690 000 PLN for house with a garden, with units ranging from 113 to 141 m2. Inspired by the Dutch building tradition, Groen’s terraced houses represent the culture and heritage of the former habitants of the area, their love of openness, simplicity and order. Bright facades stand out thanks to wooden or brick detailing, sloping roofs are both functional and charming and large windows highlight the spacious interiors: the houses are almost 3-meter height of the ground floor and first floor.
The Kabaty Forest, the Powsin Culture Park and the Botanical Garden are incredibly close and showcase the most beautiful views and nature gems the Warsaw region has to offer. But even the common space of the estate is an outstanding meeting of idyllic design, greenery and safety. With its grassy pitch and ponds with piers, complex shopping and everyday services infrastructure, as well as proximity of best schools (e.g. American School of Warsaw), Groen is a true enclave of modern lifestyle and the only such attractive offer on the local market.
Looks like dreams do come true after all. And now they’re within your reach.
Want to know more? Contact our sales office: Warszawska Street, Konstancin - Jeziorna Entrance from the Warszawska Street 171, next to Carefour BIO +48 600 113 113 www.groenkonstancin.com contact@groenkonstancin.com
POLES BUY THE MOST APARTMENTS FROM DEVELOPERS IN EUROPE
The developer sector accounts for over half of the housing market in Poland.
Developers hold almost a 52% share in the housing market— according to the latest Eurostat data. This is almost a record result in the European context. We choose new apartments not only because they offer a higher standard but also because there is simply a shortage of properties in Poland.
Over half of the money spent “beyond the Vistula” on apartments went to developers—according to Eurostat data. The domestic result is almost a record compared to other European countries. Only in two small countries (Malta and Cyprus) do new houses and apartments account for a larger share of the housing market than in Poland. However, we are talking about islands small enough that it would be more appropriate to
compare them to a large city rather than the entire area of Poland. And if that wasn’t enough, the European average is 2.5 times lower than our domestic result.
POLISH DEVELOPERS LEADING THE WAY
Right after Poland, we find Estonia, where also a lot, almost 44% of the money spent on buying apartments goes to developers‘ accounts. In the entire housing market, developers also have a share exceeding 1/3 in countries such as Lithuania, Greece, Bulgaria, and Romania.
For comparison, in the Czech Republic, Spain, Italy, Germany, Sweden, or France, the share of the primary market in the entire housing market is even several times lower than in Poland. At
the bottom of the table for years, however, Denmark remains—this time with a result not exceeding 1%. This suggests that Danish developers consistently sell a symbolic amount of apartments.
SOMEONE HAS TO BUILD THESE APARTMENTS
Why are developer properties so popular in Poland? Undoubtedly, the reason is the housing shortage. It should be known that to meet current needs, about two million more apartments would have to be built beyond the Vistula. So it’s hardly surprising that Poles more often buy new apartments than residents of countries where there are more properties per capita than in Poland.
In addition, the standard of the properties themselves is important. The average apartment in Poland is already clearly over 40 years old. About one in seven existing apartments was built before the end of World War II, and in provincial cities, from 20% to 35% of apartments are in panel blocks—according to GUS data. Therefore, it’s no secret that the standard of properties offered by developers is simply higher than what the average secondary market property entices us with.
IN 2022, THE DEVELOPER MARKET HELD RELATIVELY STRONG
It’s also worth noting that the latest domestic result is also record-breaking when compared to data from recent years. Never before in the history of the European office’s research has it been the case that developers accounted for over 50% of the housing market in Poland.
“In recent years, it has usually been from 42 to 48%, and in the years 200911, Poles spent about 1/3 of all money spent on buying apartments on developer apartments. The result for 2022 is all the more surprising because during this time, property sales plummeted. Developers reported a 50% drop in sales. The latest Eurostat data suggests that the downturn in the secondary market must have been even more severe in 2022 than in the primary market,” stated Bartosz Turek, Chief Analyst at HRE Investment Trust.
LOKALE IMMOBILIA
NEW ESG REGULATIONS FOR LANDLORDS AND TENANTS
Landlords are in store for major renovations to reduce building efficiency and comply with EU standards. Some may look to pass the cost onto tenants.
, which stands for environmental, social, and governance, has become a leading topic of discussion in business circles in the past year. This trend is particularly important for the real estate market, as properties are responsible for 40% of global greenhouse gas emissions. So far, the European Commission has focused its efforts on creating regulations for the largest global emitters, such as industry and energy. In 2023, the EU shifted its focus to the real estate sector.
WHAT IS THE RENOVATION WAVE?
To stimulate the transforma-
tion of economies towards sustainable development, the European Union has developed the “Renovation Wave” program. Its goal is to impose an obligation on building owners to reduce energy demand from fossil fuels.
The EU Taxonomy, CRREM (Carbon Risk Real Estate Monitor), which is a tool for showing a building’s emission pathway, and the new Energy Performance of Buildings Directive (EPBD) are solutions designed to support the implementation of the renovation program. “They force owners to increase building efficiency, i.e., reduce electricity, heat, and gas consumption, apply newer
technologies, and retrofit buildings,” said Aleksandra Trojanowska, Sustainability Transformation Lead, Associate Director at Colliers.
WHAT IS IMPORTANT FROM THE PERSPECTIVE OF TENANTS?
The Directive on Corporate Sustainability Reporting (CSRD) and the European Sustainability Reporting Standards (ESRS), released in 2023, are crucial from the tenants’ perspective. These directives mandate approximately 50,000 EU companies and 3,500 Polish companies to report their environmental, social, and governance standards. Emissions must be reported as well. Failure to comply may lead to criminal and financial liabilities, says Aleksandra Trojanowska.
HOW DOES THIS RELATE TO RENTAL RATES?
In the longer term, actions that save energy, heat, and
gas consumption will allow tenants to save money and reduce consumption in common areas, thus also reducing this fee.
“In the shorter term, over the course of several years, it will depend on individual buildings and their owners. Some, by modernizing the building, will try to pass some of the expenses onto tenants, for example, additional charges related to the installation of photovoltaic panels on the roof, changes in cooling/heating systems, BMS expansion, contracting green energy, or other tariffs,” said Izabela Makowska-Kwiecińska, Associate Director in the ESG department at Colliers. On the other hand, tenants may try to negotiate lower rates for transitional inconveniences during changes or renovations, she added.
In some buildings, rental rates may include charges for utilities, such as water and waste, calculated not based on actual consumption but proportionally to the rented area. When tenants want to receive their actual consumption data for internal ESG reports, building owners will have to change the measurement system and use additional sub-meters and waste weights.
“ESG reporting will force building owners, through regulations and directives, to make technical changes in buildings that will ultimately lead to tenant savings. “Collecting data for the report, through year-to-year data analysis and more accurate measurements, will lead to reduced costs for both parties,” explained Izabela Makowska-Kwiecińska.
POLISH REPRESENTATION AT MIPIM 2024
Once again, at MIPIM 2024, Poland highlighted the nation's dynamic real estate sector. Developers, investors, and various Polish companies from different regions and cities stood out on the global stage.
BY MORTEN LINDHOLM
COMPANIES
Many prominent Polish companies participated in MIPIM 2024, highlighting an array of innovative city projects and investment prospects. Echo Investment gave updates on their new flagship project T22. Alta presented their city creation project for the Silesian region, and several great panels were organized from several Polish cities, giving Polish developers a chance to showcase their own projects in commercial, residential, and mixed-use developments.
REGIONS AND CITIES
Poland was well-represented at MIPIM 2024. Each developer offered unique investment incentives and development potential. Warsaw, Poland’s capital, stood out as a dynamic hub for commercial projects, attracting attention with its skyline-changing developments and thriving business environment. Additionally, cities like Krakow and Katowice represented their city’s potential with emphasis on local talent, economic growth, investment opportunities (especially in tourism), infrastructure, and urban revitalization.
GENERAL PERSPECTIVE ON THE INDUSTRY
The Polish real estate industry has shown greater resilience compared to other European markets, supported by robust economic fundamentals and growing investor confidence. Poland continues to be a favorable investment destination, providing stability and promising long-term growth opportunities. Sustainable design, mixed-use developments, and technology integration are key trends shaping Poland's real estate future, fostering innovation and improving the built environment.
SIX QUESTIONS ARVI LUOMA OF BLACKBROOK
1.
What can you tell us about Blackbrook?
Blackbrook launched in March 2020 and is a specialist real estate investment firm focusing on futureproof supply chain infrastructure across Europe. Today we have over €1 billion AuM across 8 countries in Europe.
“Future-proof supply chain infrastructure” encompasses three key investment themes:
• Future-proof is ensuring the real estate is operationally relevant in the long run
• Supply chain relates to all real estate involved in the product lifecycle, enabling the production and movement of essential goods e.g., industrial & logistics and retail
• Infrastructure emphasises how critical the real estate is, both to the occupiers as well as wider society We invest through two verticals: net lease acquisitions, including sale-leaseback and build to suit financing, as well as the speculative development of logistics assets in core locations.
2.
What investments has Blackbrook made in Poland?
We have two Class-A logistics assets totalling c.145,000 sqm in Poland. Both are located in Poznan and situated near key arterial routes. One is a speculative development project completed in 2023, and the other was a net lease acquisition in 2020.
Poznan is a core logistics location with a significant supply-demand imbalance for standalone facilities with top specifications. At the time of our investments, Poznan had the highest logistics take-up in the country and among the highest in Europe.
As a result, we have quality longterm tenants in both of our assets. One is a major logistics company serving one of the world’s largest clothing companies, and the other is a well-known global leader in ecommerce.
3.
What is driving the growth of Europe’s logistics sector?
Occupational drivers include the steady growth of e-commerce, the trend towards “near-shoring” and “friend-shoring” of critical production, processes and stock, ESG requirements, and the transition from “Justin-Time” to “Just-in-Case” supply chain strategies. These trends are unlikely to change for the foreseeable, and each require a substantial increase in efficient logistics stock.
The lack of construction resulting from the current economic environment has exacerbated the supply issue. Combined with increasingly challenging land availability, permitting and ESG hurdles, logistics looks set to be a strong performer over the long term.
4.
What impact has the economic environment had?
The inflation spike and interest rate moves have had a major impact on everyone in our sector with a new cost of capital and risk appetite. Consumers are more cost conscious. Production costs have increased. Developers have to deal with a higher cost burden while levered buyers have seen cost of borrowing double or treble and valuations have declined materially.
What has that meant for us? Our portfolio is broadly split half long-let net lease assets with market-leading tenants primarily in logistics and grocery retail, and half speculative logistics developments in core European markets.
Our net lease assets benefit from long-term secure income with inflation indexation. We also invest with long-term fixed rate financing on a relatively conservative basis to balance returns and refinancing and rate risk. Managing the impact of valuations is always a component of portfolio management, however our investments have fundamentally performed without issues.
On our speculative developments we continue to see demand and rent growth offsetting the higher cost of capital. However, occupiers are taking more time to make decisions on leases which is pushing out business plans. One needs to be patient and focussed on strong asset-level fundamentals in the first place.
What has not changed materially are the drivers for logistics in core markets. There is still significant demand for more space, more efficiency, more ESG optimisation, and more power supply. The case remains strong for logistics, and this is why it remains one of our core strategies.
5.
What is Blackbrook’s approach to ESG?
From inception, we have been committed to achieving and maintaining an ESG optimised portfolio. ‘Doing what we can with what we know today’ is part of our investment strategy – not just a tick-the-box exercise. Our team is constantly and proactively working to ensure that our ESG investments will create meaningful impact in the long run.
The majority of our investments are ESG-certified and at the forefront of energy efficiency with clean energy solutions. We always strive for the highest-ranking green credentials, and our development assets typically benefit from net zero carbon construction, significant employee well-being
amenities, as well as local community considerations.
For assets that we acquire, we undertake ESG audits to find ways that they can be improved so they do not require reconstruction. We also advise and provide capital to our occupiers to help reduce their carbon footprint in our assets.
The Blackbrook Impact is our charitable initiative supporting communities around our portfolio assets.
6. Looking ahead, where do you see opportunities?
The logistics sector, particularly speculative development in core locations, remains our highest conviction strategy. However, with the lack of construction, there will be opportunities in the Build to Suit space as industrial companies look to grow. While the high-rate environment would suggest a flood of sale-leaseback activity as an alternative source of capital for companies, this has not materialised at scale, but we could see more opportunities over the next 12-24 months. Should the prevailing rate environment continue ‘higher for longer,’ investors with debt challenges may present opportunities to acquire standing assets on an attractive basis. That said, I believe the rate cycle has peaked and there will be pressure to reduce rates over the next 6-12 months bring much needed optimism to our industry.
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
DON'T PANIC, AI BRINGS
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
If you believe what you see in the media, we are living in the age of AI. What is AI and how will it impact the commercial real estate industry?
By Tom Ogrodzki
There is no doubt about one thing – artificial intelligence is not just a media phenomenon, but a real trend that the world’s largest companies are embracing. The clearest evidence of this is the market performance of the company which has made the design and manufacture of AI-optimized chips its flagship business. Nvidia’s revenue has grown 265% this year and the company’s market cap continues to exceed expectations.
Even in industries as mature as real estate, the widespread and universal use of AI-based tools is beginning to be noticed. As an indication of the pace of change being driven by artificial intelligence, the Emerging Trends in Real Estate® Europe report, which summarizes sentiment and trends in the real estate industry for 2023, says nothing about this particular technology, while in the corresponding 2024 report, up to 95% of professionals surveyed say AI will impact their business in the next decade.
So, as it looks like AI is going to change our world, so deeply and so fast that it can be seen even in something as stable as real estate, it’s worth considering what those changes will be.
AI: FOURTH REVOLUTION OF THE THIRD CHIMPANZEE
“Technology is miraculous because it allows us to do more with less, ratcheting up our fundamental capabilities to a higher level,” Peter Thiel, one of the founders of PayPal, wrote in the introduction to his book Zero to One. This quote is a good summary of the view that technology is a tool – another in a long line of tools with which humans have changed the world. In the history of mankind, it is easy to identify moments that have had a transformative effect on human life and that are the source of successive revolutions. Each time, it has been
AI is a tool that, like a javelin with a stone spearhead, an ox harnessed to a plow, or a steam engine, allows you to ‘do more with less,’ freeing up time and energy for other tasks
closely linked to the invention and diffusion of technology that has opened up new possibilities for our species. African hominids were able to spread across the planet by mastering fire and making stone tools and clothing. The Industrial Revolution, which began with the conquest of steam power, electricity, and the splitting of the atom, led us to where we are today – global communications, mass production, and unprecedented mobility. It seems that we may be on the cusp of another revolution, this time brought about by the mastery of AI.
AI is a tool that, like a javelin with a stone spearhead, an ox harnessed to a plow, or a steam engine, allows you to ‘do more with less,’ freeing up time and energy for other tasks. This is true both for the student using ChatGPT to sift through the source material and for the government official modeling the economic impact of introducing the new legislation.
AI IN REAL ESTATE – QUO VADIS?
And where does real estate fit into all of this? Is there a need for such a tool, what can it do for the industry,
and will the industry be able to make use of it? Starting from scratch – yes, there is. And it’s a great need.
As the world increasingly experiences the effects of the climate crisis and the international community searches for ways to reduce its magnitude, construction is responsible for 40% of CO2 emissions. This is a huge potential for reduction. The first step is to understand that most of these emissions are generated by construction and demolition.
So the real estate industry has no choice but to build wisely, to carefully consider whether a building should be built, to design it in a purposeful and thoughtful way that will allow it to last as long as possible. This requires advanced modeling, effective extrapolation of trends, and prediction of upcoming changes – and this is where AI excels over humans.
Sure enough, we have to keep in mind that AI-based solutions bring with them challenges that the industry and the experts are well aware of. Summing up the recent panel discussion at the CEE Summit in London, Svetlana Fedosova, founder of the Entralon Club, said: “The panel
also acknowledged the challenges associated with AI, such as the potential risk of intellectual property leaks when feeding AI with confidential information and concerns about job displacement as automation reduces the need for human labour.”
As Radek Zaleski, partner at Netguru, adds, “The slow death of routine office work being taken over by AI will change the need for businesses to have offices. And this will change in general what the office is for the new generations: maybe they will be small, elite, high-quality clubs for top managers?”
That being said, experts who know the ins and outs of this market can rest easy. AI is supposed to be used to give them superpowers, that is, to provide them with reliable data in a timely manner.
FASTER. MORE. BETTER. AND WITH GREATER SATISFACTION
In any case, artificial intelligence makes it possible to achieve the desired result faster and to reduce the number of errors. In business, this means a quantum leap in the potential of an employee with such a tool – and we’re talking about actual differences that can be observed and measured.
According to a study published by Github, as many as 88% of software developers who use an AI tool say they are more productive – though it should be noted that ‘productivity’ goes beyond the simple metric of the amount of code written per unit of time and includes elements such as the feeling of having more mental potential for other tasks or greater satisfaction with the work done.
Aleksandra Przegalińska and Konrad Sowa came to very similar conclusions in a study published in the book Digital Transformation of Collaboration. Namely, the managers in the study who were supported by a virtual AI assistant performed their work more than half as effectively
Needless to say, the employer’s costs can be reduced due to the increased efficiency of employees and the ability to fully automate some tasks
(measured by the number of tasks completed) and reported higher job satisfaction than the control group who worked without the tool’s support.
Needless to say, the employer’s costs can be reduced due to the increased efficiency of employees and the ability to fully automate some tasks. It’s also something we already know from history, because it happened with the proliferation of each successive tool. Weaving machines virtually eliminated the profession of weaver, but at the same time there was a need for mechanics, a need for laborers, a logistical chain necessary to keep the machine running that did not exist before, or a huge demand for laborers in the trade that suddenly became massive.
I am convinced that we will soon see both of these effects – the disappearance of some jobs and the emergence of entirely new ones. The use of AI will increase prosperity, both at the level of societies and at the level of individual organizations or systems, where decisions will be made faster and more accurately, as is already the case on Wall Street, where more and more trades are made automatically, yielding higher profits.
Brent Watkins, One Consulting s.r.o., accurately sums up the relationship between the human factor and AI
in the real estate: "Technology has always been a part of real estate, in fact from a human-centric view, buildings are technology and just serve a purpose (and necessity for humans), therefore better tech is good. I think the best buildings in near future will be run by AI but curated by an experienced human. Living buildings still need that human hand on the controls and interface with the users".
Tools made of flint did not destroy mankind but helped it to evolve. The same goes for growing crops or building railroads. This will also be the case with AI, a tool that will advance humanity by allowing us to draw conclusions faster so we can make decisions that are more costeffective, greener and better for both investors and the world.
The conversation about AI in RE will continute at the Entralon CEE Business Retreat 2024. Scan for more details.
MC:
CONSULTATIONS ON AI IMPLEMENTATION ACT BEGIN
The Ministry of Digital Affairs initiates consultations on implementing the EU’s Artificial Intelligence Act into Poland’s legal system. It seeks feedback on whether to establish a new regulatory body for AI and how existing bodies might adapt.
Stakeholders are asked four questions, including whether current institutions should handle AI oversight and notification roles. This effort aims to align national laws with EU regulations, considering the Act’s risk-based approach to AI governance. Responses are due by April 23 via email, marking a significant step in addressing AI’s legal framework in Poland.
HACKING
Sophisticated spam attacks targeting Polish companies on the rise
ESET analysts have uncovered a surge in sophisticated spam attacks targeting Polish companies, with 26,000 incidents thwarted in the latter half of 2023, the highest reported globally. Criminals impersonated legitimate companies and employees, crafting convincing emails to steal sensitive data. These emails, often offering B2B cooperation, utilized fake domains closely resembling genuine ones. Even genuine email accounts were compromised to lend credibility to the scam.
GAMING
Paid DLC for “Gas Station Simulator” recovers costs in 7 days
The paid add-on to the computer game “Gas Station Simulator” titled “DLC Tidal Wave” for PC premiered on digital game distribution platforms Steam and Green Man Gaming on March 21,
IT JOB MARKET
Turbulence in Poland’s IT job market: shifting salaries and specializations
Despite rising salaries, Poland’s IT job market faces challenges, with increased competition for positions and fluctuating demand. Specializations like Backend, Frontend, and Testing experienced decreases in job offers and salaries since late 2023. Salaries for Backend and Data specialists dropped significantly, while roles in game development, data analysis, and artificial intelligence are on the rise. Hybrid work options are becoming more prevalent, replacing fully remote positions. However, uncertainties persist due to evolving technologies like artificial intelligence, leading to unpredictable job market trends. According to industry experts, ongoing observation and adaptation are crucial for navigating the shifting landscape of Poland’s IT job market.
2024, at 5:00 PM. Production and marketing costs totaled around PLN 450,000, fully covered by gross revenues from Steam sales within nearly 7 days.
Drago Entertainment released the DLC under its publishing account. Steam sales reached 11.6 thousand units with a player rating of 44% based on 81 reviews. Refunds, allowed within 14 days per Steam policy, accounted for about 2% of sales. Sales data from Green Man Gaming wasn’t available at the time of the report. Drago also noted increased sales of the base game and previous add-ons
during the reported period. Established in Krakow in 1998, Drago Entertainment transitioned from NewConnect to the main GPW market in 2023.
GAMING
Huuuge Games‘ gaming revenues in March amounted to approximately $14 million In March, Huuuge Games’ revenue from games on Apple and Google platforms reached approximately $14 million, according to Sensor Tower. The top-grossing game, Huuuge Casino, earned about $8 million USD, split equally between
iOS and Android, with around 330,000 downloads. Billionaire Casino, the secondlargest title, generated roughly $5 million USD, with $2 million USD from iOS and $3 million USD from Android, and had about 220,000 downloads.
“Billionaire Casino” is now published on iOS by a subsidiary. Sensor Tower calculates mobile game revenue based on player payments, deducting a 30% commission to store owners.
FINANCE
DataWalk signs deal with Polish Bank Association for analytics platform DataWalk has signed a contract with the Polish Bank Association (ZBP) for the sale of DataWalk’s analytical platform licenses, the company announced. The project aims to utilize DataWalk software for various analytical purposes, including antimoney laundering efforts.
DataWalk is a technological entity that has developed its own analytical product to tackle global security issues. Its platform integrates billions of objects from multiple sources and finds applications in investigative analytics in both public and financial sectors, combating crime (U.S. agencies), fraud (insurance companies), and abuse identification (government).
ECOMMERCE
Poland’s payment system evolution: embracing diversity and innovation
The expansion of payment methods in Poland fosters market competition and innovation, reducing dependency on a single dominant system. The country’s monetary structure is shaped by both supply factors, such as the attractiveness of various forms of money, and demand, influenced by economic shifts and technological advancements.
The Polish central bank’s strategy ensures universal cash acceptance alongside digital initiatives. Amid a global trend towards cashless transactions, defending the role of physical currency remains pertinent. However, regulations like the EU’s Instant Payments Regulation challenge traditional norms, promoting real-time euro transfers.
Central Bank Digital Money (CBDC) emerges as a potential avenue, balancing financial inclusion with privacy concerns. While Poland’s payment landscape evolves, preserving cash’s credibility and exploring digital innovations reflect a nuanced approach to modernizing financial systems.
NANOPRINTING/TECH
Nanoprinting XTPL with forth US client XTPL will deliver a Delta Printing System (DPS) to a new client in California in the first half of 2024, marking the fourth DPS sale in the USA. This aligns with XTPL’s strategy for 20232026, including the opening of its first
TECH NUMBERS
Infrastructure vulnerabilities PLN 300 mln to PLN 400 mln
Poland’s annual oil and fuel investments (PERN)
26,000
hacking incidents thwarted in the latter half of 2023 (ESET)
2 years
Time to implement R-GRID (AI tool used to ID energy infrastructure vulnerabilities.) (NATO’s Science for Peace and Security Programme)
IT industry Salaries PLN 16,500-21,300 Net
Lower/upper median salary for intermediate IT specialists (B2B) PLN 19,000-24,000 Net
Data specialization salaries (B2B) PLN 12,600-20,000
Gross
IT Data specialist salaries (contract) (No Fluff Jobs)
GETTING A LEG UP
Can a junior employee skip the initial part of the learning curve, gliding over the bumps in the road on feather-and-wax AI wings? Or will they forever remain just that: juniors with really cool tech at their disposal?
BY BEATA SOCHA
The job market is in flux. On the one hand, employers are expecting new hires to bring an ever expanding AI skillset to the table, on the other, jobs for junior- and in some cases mid-level positions seem to be getting scarcer.
It is no secret that AI automation will require a significant shift in how the workforce is utilized. The writing
is on the wall: junior jobs are disappearing, and junior employees are expected to fill mid-level specialist jobs with the aid of Artificial Intelligence. Entry-level workers are expected to use AI to jumpstart their careers and skip a crucial level of early skill acquisition. What does it mean for the generation entering the job market?
WHO FEARS THE AI AX THE MOST?
Employees already feel AI breathing down their necks. According to a D2L study, 43% of full and part-time workers in the US are apprehensive about being replaced by employees with stronger AI skills within the next year. The youngest generation in the workforce, Gen Zs are the most worried: more than half of young employees (52%) fear for their jobs because of the AI revolution. Millennials follow them closely with 45% expressing similar concerns. The older generation, Gen X (aged 44 and above), shows far less trepidation about the future of their employment, with only a third of them expressing fear of being replaced.
It may seem puzzling that the youngest employees, often referred to as “digital natives” are the most worried about what the AI revolution has in store for them. Perhaps they understand the technology well enough to see its true potential, beyond the current scope of image generators and Large Language Models.
They may also realize what their Achilles’ heel is: they have not yet had the time to acquire real professional experience and the skills that come with it. And what’s worse – no one is willing to teach them.
How do we climb the ladder if the first few rungs have been removed?
SKILLED JOBS WITHOUT SKILL
Skills are built over months and even years. Some specific tech know-how can be taught over a single two-hour webinar, but broad-scope skills accrue over thousands of hours of diligent work, a trial-and-error approach, and reinforcing the pathways that produce the best results.
Can we really devote all those hours to honing a single skill these days? The
first problem is that with the fast pace of change in technology, few have the luxury to bet on a single skill to propel their careers. We have had to learn to be adaptable above all else, being ready to switch from one technology or platform to the next and the next after that. However, frequent switching is not conducive to in-depth understanding.
edit for grammar, style and punctuation, many of the skills that took years to master become outdated in an instant. Was it worth spending all those hours to learn them?
Then came the realization that gen-AI is not infallible and it makes mistakes, not to mention sometimes pulls data and sources out of thin air. Not for nothing did Dictionary.com name “hallucinate” the word of the year 2023.
Many professionals heaved a breath of relief when they realized there is still room for them in the newly minted “AI quality assurance jobs.”
LLM QUALITY ASSURANCE – AI SKILLSET IN USE
ChatGPT caming online gave copywriters, journalists, translators, editors and software engineers around the world serious reasons to be fearful. It dawned on them that the skills they’d poured countless hours into mastering were no longer marketable, because a gen-AI model could outperform them, at least in terms of volume if not value. Was there still demand for all of the hard-earned experience and skills? If a Large Language Model can produce marketing copy in an instant, translate between any pairs of languages, and
Many professionals heaved a breath of relief when they realized there is still room for them in the newly minted “AI quality assurance” jobs. And this is where we are now. We use AI on a daily basis, we keep finding new applications for the technologies available, we learn new ones, switch back and forth until we find the best fit for our task. We are uptraining existing models and testing new ones. We are getting comfortable with gen-AI.
There is one caveat. The “we” in that example refers to employees with significant experience to lean back on. How good at spotting errors and correcting LLMs are people who have never had the chance to learn writing, editing, translating or coding the hard way, making errors and correcting them?
Once you’ve spent years poring over your own and other people’s work you instinctively know where errors may occur. Switching to curating and editing AI-sourced content is not that far removed. You quickly learn where AI tools trip up and put those bits under a microscope. A seasoned editor will instinctively know where an AI translator can fail and which language structures can lead to misunderstandings or hallucinations. With enough experience in correcting human errors, recalibrating the toolbox to search for AI screwups is relatively easy.
The key word is experience.
AI CRUTCH
What if your resume lacks the years of editing, coding or doing research the old-fashioned way? You get your first or second job, which comes with a suite of the latest gen-AI models and your boss says “go.” What then?
There’s no need to panic. Studies show that with an AI aid, productivity will jump very quickly. According to Business Insider, gen-AI tools are the great equalizer in the workplace. People who were underperforming in their jobs suddenly caught up to their more productive colleagues when given gen-AI tools.
Gen-AI is great at writing copy and code, translating, summarizing, sifting through data sources etc. Occasionally it will fail, but on average it speeds up simple, repetitive work tenfold or even more. Junior jobs are where gen-AI shines the brightest.
COMMON SENSE BENCHMARKING
AI can give a junior employee a leg up and make them more efficient very quickly. But it won’t teach them the basics, it will do the work for them. It’s like always copying your friend’s homework and getting straight “As.” But when you finally want to strike it on your own, you realize learning advanced skills without mastering the basics is oftentimes impossible.
It takes skill to realize when an AI is underperforming. It takes experience to know where to look and how to assess the work product AI tools deliver. When we see an artificially created copy or code, we contrast it with a human-made benchmark we have in our minds to see if it passes off as “acceptable.” But we need to acquire the benchmark first.
If all you ever learn from is AI output, how are you supposed to learn what is good code or good copy? How would you know if a novel you’re reading is good if you’ve only read plot synopses?
As the use of AI for entry level jobs expands, we may have to devise an alternative training scheme for the new generations entering the job market.”
APPRENTICE WANTED
Knowledge that comes from experience allows us to look at the world with a critical eye, discerning what is valuable from what is a clear waste of time.
We learn a lot by doing, by trial and error, by failing and trying again. We go through a series of jobs to acquire skills that education alone could never provide. And this process starts with entry-level positions.
As the use of AI for entry level jobs expands, we may have to devise an alternative training scheme for the new generations entering the job market. Perhaps something more structured than “on-the-job training” that used to work in the past.
Maybe we will see the return of apprenticeships: seeking out promising individuals and expending time and energy to teach them all the intricacies of a profession based on the promise that they will become proficient. Alas, this also implies that the less fortunate ones will be given AI crutches and will remain at their entry to mid-level positions without much hope for advancement.
Artificial intelligence promises to make our tasks easier, work more productive, and companies more efficient. New research conducted by Slack has shown that 80% of employees using generative AI tools experience increased productivity – and this is just the beginning. AI assistants like Salesforce Einstein Copilot can already answer questions, generate content, and dynamically automate actions. One day, these assistants will become digital sales and service agents, predicting our needs and acting on our behalf.
However, with every advancement in artificial intelligence comes new ethical concerns. What if an AI assistant offers a wrong product recommendation? What if it takes erroneous actions in critical matters like personal finances or medical information? In such cases, the stakes suddenly become much higher. Therefore, an important question arises: how can we harness the power of AI without exposing ourselves to risks?
HUMANS AT THE HELM
We must acknowledge that AI itself is an evolution. Every day, we take steps forward, but we’re not always able to explain why artificial intelligence does what it does. We also can’t eliminate every case of inaccuracy, toxicity, or misinformation. Therefore, this article was sourced from Salesforce, artificial intelligence needs humans at the helm. For these reasons, it’s important for people to have full control over AI systems. However, as artificial intelligence becomes increasingly sophisticated, it may be challenging to imbue it with human-like characteristics. With the
IS AI STEALING OUR JOBS?
While the vast majority of employees see a bump in productivity when using gen AI, the tech still needs humans at the helm
next generation of artificial intelligence, it’s sometimes unrealistic for us to engage in every interaction with it or review every result generated by AI.
This is why artificial intelligence needs humans at the helm. Instead of asking people to intervene in every individual interaction with AI, we design more efficient, systemic control mechanisms that put humans in charge of the outcomes generated by artificial intelligence. In other words, people don’t always row the boat – but largely steer where it goes.
With humans at the helm, we can design AI systems that leverage the best of human and machine intelligence. For example, we can unlock incredible efficiency by assigning tasks like browsing and summarizing millions of customer profiles. At the same time, we can build trust by enabling people to scrutinize the results and use them in ways that artificial intelligence cannot.
ARTIFICIAL INTELLIGENCE AS A CO-PILOT, NOT AUTOPILOT
There’s a reason why AI products of this generation are called co-pilots, not autopilots. As artificial intelligence becomes more powerful and autonomous – making decisions or taking actions on behalf of individuals – keeping humans at the controls becomes even more crucial. By combining the capabilities of artificial intelligence with the strength of human judgment, we can make it more effective and trustworthy.
EXAMPLES OF HOW HUMANS STEER AI
The questions or instructions we send to generative AI models are crucial. A single, human-generated prompt can help achieve accurate results – but only when carefully constructed. It’s necessary to create tools that show changes in near-real-time through various editing modes. This way we can customize
and improve prompts to provide more helpful, accurate, and relevant results.
A PIONEERING APPROACH TO THE AI ERA
As the AI era unfolds, it’s crucial for both humans and technology to evolve alongside it. The AI revolution is not just about technological innovation – but also about enabling people to effectively sit at the controls of AI and use its capabilities in a trustworthy and effective manner.
With humans at the helm, we can combine the best of human and machine intelligence, leveraging the capabilities of artificial intelligence and unleashing the potential of people to do what they do best: be creative, make judgments, and deeply connect data. Through the collaboration of AI and humans, we can build more productive companies, empower employees, and ultimately create trustworthy artificial intelligence.
Life + Style
IT’S TIME TO WINE DOWN
We sit down with Head Sommelier at Nuta, Mateusz Dobrzykowski to talk about the colorful world of Polish wine
PHOTOGPAPH AND INTERVIEW BY KEVIN DEMARIA
WBJ: Tell me about the regions Polish wines come from.
Nowadays, leading producers come from the regions of Dolny Śląsk, Zachodniopomorskie, Małopolskie, Podkarpacie, and Lubelskie. When you consider these regions, it is important to remember to focus on the southern part of the country because the vegetation period is the longest there. The warmest region of them all is the general southern part of the country, with its rolling hills and almost microclimate, but it is also important to remember the western and northwestern parts of the country like Lubuskie and Zachodniopomorskie, with the iconic producer Turnau now being the biggest producer with 34 hectares, having a huge area of production. Actually, now the 2nd new upcoming producer, Dwór Charbielin, within 27 hectares.
Why are the better tasting wines from Poland mostly white?
Well, it has to do mostly with the fact that red wines need to come from a more mature vine, and the ones here in Poland are not there yet. We are looking for a sort of perfect gateway for the red wine to improve. We have beautiful wines from the Pinot Noir or Zweigelt grapes, which is a popular variety in Central Europe, but we are seeing stylish Polish Rondo and Regent grapes which almost have a veggie earthy taste that is very familiar among all the sommeliers in Poland when we do blind taste testing. Often we know this varietal because we can taste something of fermented beetroot. It is kind of a thing that is okay, but we always look for something a little bit more advanced in their style, which is the point of reference for the quality. Personally, I see big potential in Cabernet Cortis grape.
Tell us about making a tasting menu with a Michelin star chef?
The idea of Andrea is to smash your palate with an explosion of flavor. Rich and complex experience. So every wine has to have an amplified position. For example, for our borscht soup with caviar and duck broth, it is a challenge to match the main ingredient and the beetroot which is generally not a friend to sommeliers because it is sweet and veggie. Something light red wine, but remember the duck stock with a sort fatness which needs a higher level of alcohol, as well as silky tannins to match. Something not too oaky because it will kill the structure of the dish. And especially Andrea, he brings a lot to our conversation when we discuss pairing wines with his dishes. He is expressive and the wines need to be iconic as well by
the label or the backstory or unusual fragrances.
You were a judge at Wino.pl in Poznan, can you tell us more about it?
The city of Poznan is known for its international fairs and the organizers saw the popularity of Polish wine, so they created the opportunity to invite together a large class of sommeliers, sellers, bloggers from all around Poland to see the different points of view come together to paint a picture of Polish wine culture. It is a really fascinating event where we are tasting different subgroups, red wines, sweet wines, rose wine, and white made from hybrids. Tasting is blind with black foil so that there are no biases.
Is there a best in show?
We judge the wines based on the Robert Parker rating system which gives wines a score between 50 and 100 points. The higher the score, the better the wine. Wines with ratings between 80 and 100 points are considered to be good quality wines worth trying, although, for questions of prestige, wineries tend to only publicize ratings of 90 points and over. One thing to consider is that the ratings change because the vintages change in quality and winemakers are experimenting, but often times for the better.
Who would you keep an eye out for?
If you look in the Lubelskie, you will see Kamil Barczentewicz, a young producer from the new wave, with a precise character and good expression. Two guys: Guillaume Dubois, Jean Thierry Smolis who came from France who are producing the best sparkling wine in Poland.
How do you account for trends?
There are producers making individual series or lines of production like orange wine, petit naturals which are still working and producing carbon dioxide inside and with nice labels. These are perfect for the upcoming consumer or even the business person who wants something more edgy and different.
Would you say there is a wine revolution like there was a craft beer revolution?
People going to wine bars or shops buy wine based on a recommendation and the seller needs to be knowledgeable as well as making a profit and with wine bars in big cities like Warsaw, until the knowledge of the beginning stages of wine is evolved and more informed then it will take some time before it becomes a big thing.
EVENTS
The WBJ relives or looks forward to the most important events in the world of business and economy
20TH JUBILEE INTERNATIONAL MBA CONGRESS
AI Powered Management – Evolution or Revolution?
From May 17-19, 2024, the International MBA Congress, organized by Krakow Business School at Krakow University of Economics, is Poland's largest event integrating MBA students, graduates, and middle to senior managers from diverse industries. With over 200 participants annually, this year's milestone edition focuses on "AI-Powered Management: Evolution or Revolution?"
The event will delve into pressing topics concerning artificial intelligence, which has become increasingly intertwined with both our professional and personal spheres in recent years. Participants at the Congress will engage in thought-provoking discussions on AI's role in management, alongside practitioners, experts, entrepreneurs, and scientists. Through panel discussions, attendees will exchange insights on utilizing machine learning tools, pose challenging questions, and collaboratively seek solutions.
This year's edition of the International MBA Congress will be opened by Jarosław Królewski (CEO/Co-founder of Synerise and CEO/Owner of Wisła Kraków Football Club) with his speech "Why We Need Inhuman AI".
The 20th Jubilee International MBA Congress includes 3 thematic panels:
I. AI Powered Innovations in the Digital Transformation
II. Beyond the Hype: Real-World AI for Marketing Success
III. The Strategic Issues of People Management in AI context
But the International MBA Congress is not only about panels!
Participants can expect:
Workshops: led by experienced trainers, offer participants a chance to enhance their skills and broaden their horizons. This opportunity allows attendees from diverse industries to engage in activities aimed at skill improvement and personal development.
Networking & Gala Dinner: Participants will engage in free discussions on ideas and establish valuable business connections. A highlight of the first day is the Gala Dinner, featuring a charity auction. This year's auction will showcase artwork and items of special artistic significance, with proceeds benefiting the Psychiatry Clinical Department for Adults, Children, and Youth at the University Hospital in Krakow.
The closing event for the Congress will be a family picnic organized at the Royal Kraków Golf & Country Club in Ochmanów, near Krakow. The picnic is both a great opportunity to strengthen integration between Congress participants and an opportunity to perhaps take those initial steps in learning how to play golf. There will also be a tournament to win the KSB KUE Director's Cup.
Announcements
DETAILS OF INFOSHARE 2024
This year’s Infoshare features over 150 top speakers worldwide, showcasing the latest global technological trends. Leading companies, international investors, and hundreds of startups will gather on May 22-23 for Infoshare 2024. Registration is ongoing, with thousands expected to attend. This year's 18th edition offers eight thematic stages, with discussions on business innovation, effective sales, marketing trends, AI, and the future of the global technology market. Presentations include Henrik Von Scheel, Jeff Gothelf, Natalia Hatalska, and Zuzanna Skalska.
AI challenges will be discussed by Steve Nouri and David Barnes, among others. Future scenarios will be presented by Dr. David W. Wood, Magda Bigaj, Simon Anderson, and Janina Bąk.
The conference also features marketing futures and global technological trends with Paweł Tkaczyk, Łukasz Kosuniak, Artur Jabłoński, and experts from Github, Spotify, Netflix, Google, Microsoft, and Nvidia.
The Startup Contest winner will receive €30,000 and earn a place in Sebastian Kulczyk's prestigious acceleration program. The conference includes specialized workshops and training sessions.
Infoshare 2024 promises to be a vibrant space for business leaders, investors, and startups to connect. Grzegorz Borowski, CEO of the infoShare Foundation, stressed the importance of Infoshare as a meeting ground for international corporations, and banks, seeking cutting-edge technological solutions from startups.
Ticket details are available on the organizer's website.
ANNOUNCING THE 16TH EDITION OF THE EUROPEAN ECONOMIC CONGRESS
We are only a month away from the 16th edition of the European Economic Congress (ECC) scheduled for 7-9 May. Respected authorities, decision-makers, managers of major companies, entrepreneurs, pundits, scientists and academics will gather in Katowice to discuss matters critical to Poland, Europe, and the world.
Central Europe's largest business event, strives to provide a broad, diversified and open forum for debate about the future of the Polish and European economies, while at the same time addressing key social challenges.
This year’s edition will be no different. The themes of this year’s ECC are: Europe, geopolitics and economy; Energy, transition and security; Climate and a sustainable economy; Digital economy and new technologies; Investments and finance; Law, economy, Migration, diversity, and the labor market.
These themes will lead to more than 160 debates accompanied by galas, announcements of the results of the debates and banquets. The slogan of this year’s edition of the event is: Transform today, change tomorrow.
According to Wojciech Kuśpik, president of the PTWP Group, and initial organizer of the European Economic Congress, this year's edition will be one of the most interesting in EEC’s history.
“There’s a new government in Poland and we’re facing serious geopolitical challenges. This year’s EEC will coincide with the 20th anniversary of Poland’s accession to the EU, and mark six months into the term of the new government. The EEC follows local Polish elections and is a month ahead of elections to the European Parliament. There is a huge interest in the event with hopes for an open dialogue. The EEC has always been a platform for open debate,” says Wojciech Kuśpik.
This year, Katowice will host politicians, scientists and academics as well as business people, some of whom are members of the management boards of Poland's largest companies.
The WBJ relives or looks forward to the most important events in the world of business and economy
Highlights from past events
POLAND & CEE RETAIL SUMMIT 2024
The Poland & CEE Retail Summit 2024, held in Warsaw on April 9-10, attracted over 3,000 participants, earning a remarkable post-event rating of 9.1 out of 10. Within the first week after the summit, 600 attendees registered for the next edition, underscoring its success. The Club of 369 expanded to over 400 industry experts, driving transformative discussions on retail and CPG. Sustainability and retail excellence were highlighted, with various companies receiving awards. The summit has cemented its position as a pioneer in retail innovation.
15TH EDITION OF "POLISH INFRASTRUCTURE AND CONSTRUCTION"
The March 19, 2024 conference at the Sheraton Grand Warsaw Hotel featured three panel discussions and presentations on public procurement, infrastructure construction, and the industry's future. Piotr Bujak's keynote speech emphasized the industry's dependency on the macroeconomic environment. Case studies on CAR/EAR insurance and ESG criteria implementation were presented. Panels discussed public procurement, road construction, and industry challenges. The event concluded with an awards ceremony honoring sector leaders for their performance and efficiency.
POLISH-GERMAN CHAMBER OF INDUSTRY AND COMMERCE – SURVEY RESULTS 2024
Entrepreneurs are increasingly optimistic about their business and the economy, with government decisions also receiving positive views. Poland ranks among the top three investment locations, with EU membership seen as a key factor for foreign investment. The "Poland in the Opinion of Foreign Investors" survey, conducted in February/March 2024, indicates improved economic and industry conditions compared to last year. Dr. Lars Gutheil, Managing Director of the Polish-German Chamber of Industry and Commerce, sees the results as a sign of economic recovery and positive sentiment for future developments.
