New retail supply in Poland amounted to approximately 420,000sqm in 2018, pushing Poland’s total retail stock up by 3% to 14.7m sqm, according to Cushman & Wakefield.

The firm reported that nearly 30% of the new supply was completed in small-scale shopping centres and retail parks (sized below 20,000sqm), while extensions of existing shopping centres and retail parks delivered approximately 60,000sqm of new retail space.

Aleksandra Sierocińska, consultant for capital markets at Cushman & Wakefield, said: “In 2018, over €7.2bn was invested in the Polish commercial real estate market with €2.5bn transacted in the retail sector. Last year’s retail investment volume was the highest since 2006.

“Prime shopping centre yields hardened to 4.25%. While prime high street locations are valued at 5%, prime yields for retail parks as well as retail warehouses hold firm, at 6.75% and 7% respectively.”

Shopping centres continue to dominate the Polish retail market, accounting for nearly 75% of the country’s total retail stock. At the end of 2018, Poland had 460 shopping centres totalling almost 11m sqm of floor space.

More than 600,000sqm of retail space is currently under construction or has a valid building permit. Nearly 75% of that total is expected to be handed over by year-end 2019. The largest retail scheme underway is Warsaw’s Galeria Młociny (more than 70,000sqm), which is scheduled for delivery in April 2019.