COVID-19 has slowed the activity of office developers, intensified competition in the residential land market, and shrunk the supply of land for warehouses.
The pandemic verified forecasts regarding an increase in prices for land designated for office projects. In the case of Warsaw, the best opportunity to maintain value despite COVID-19 was for land on the outskirts and in the very heart of the city, where average values invariably fluctuate from PLN 3,000 to 4,500 per sqm of usable area.
Average transaction prices per sqm for residential usable areas in Warsaw were about PLN 2,000, with values exceeding PLN 5,000 in the most prestigious districts, including Powiśle, the central zone of Śródmieście and Upper Mokotów. In the largest regional cities, average transaction prices in relation to the residential usable area ranged between PLN 700 and 2,000.
Average prices of undeveloped land for retail parks ranged between PLN 150 and PLN 500 per sqm in Poland. An upward tick was seen for land situated on the outskirts or within the city limits of the largest regional cities. In Warsaw land for this category was up to PLN 1,000 per sqm or more.
The growth of the logistics sector in recent years and the high demand for investment land directly affected the increase of transaction prices of land designated for warehouse and production developments in the most popular locations. This trend has been reinforced during the COVID-19 pandemic. Warsaw remains the most expensive market with prices reaching PLN 700 – 800 per sqm. The further away one goes from Warsaw’s city borders, the lower the land prices, dropping to PLN 100 – 120 per sqm. Prices on equally attractive regions of Upper Silesia, Wrocław and Poznań remain steady at PLN 150 – 300 per sqm.