Development land values in Poland are finally on the way up. There has been a significant improvement on both the demand and supply sides and the trend is likely to continue.
The development boom in the decade before the financial crisis fuelled a spiralling rise in land values. But the Lehman Bros collapse of 2008 and the subsequent shortage of bank loans led to a pause in land purchases and a drop of up to 50% in prices achieved on sale.
In subsequent years the market began to slowly recover and today we are witnessing sustained growth much of it thanks to decreasing construction costs.
However, despite the recovery, current development land prices are still some 30% below 2008 peak values with the exception of Warsaw where prices have now reached their former peak levels.
There is a large land price range of 400 zł/m² to over 12 000 zł/m², or even to over 34 000 zł per 1 m2 of office development sites in central Warsaw. The wide variation in the price of land is mainly results from their destination and location. The cheapest land tends to be zoned for warehousing and the most expensive for offices or retail purposes.
Development land values in Poland are finally on the way up. There has been a significant improvement on both the demand and supply sides and the trend is likely to continue.
The development boom in the decade before the financial crisis fuelled a spiralling rise in land values. But the Lehman Bros collapse of 2008 and the subsequent shortage of bank loans led to a pause in land purchases and a drop of up to 50% in prices achieved on sale.
In subsequent years the market began to slowly recover and today we are witnessing sustained growth much of it thanks to decreasing construction costs.
However, despite the recovery, current development land prices are still some 30% below 2008 peak values with the exception of Warsaw where prices have now reached their former peak levels.
There is a large land price range of 400 zł/m² to over 12 000 zł/m², or even to over 34 000 zł per 1 m2 of office development sites in central Warsaw. The wide variation in the price of land is mainly results from their destination and location. The cheapest land tends to be zoned for warehousing and the most expensive for offices or retail purposes.