Cushman & Wakefield has released a report summarizing the first quarter of 2022 on the Polish industrial market. According to its data, total warehouse take-up in the first three months of this year reached 1.56m sqm, while the development pipeline hit a record 4.8m sqm.

In January-March 2022, Poland’s economy expanded by over 8% year-on-year, revealed the National Bank of Poland. However, Poland is currently struggling with shortages of raw materials and manufacturing components, as well as high inflation, which is likely to result in an economic slowdown.

Poland’s inflation rate continued its upward trend, climbing to 12.4% in April 2022. The average annual price growth is expected to remain in double figures for the whole of 2022 and to reach 10.9%. According to data from Poland Statistics (GUS), Poland’s industrial production rose by 16.7% compared to 7.8% in Q1 2021.

In January-March 2022, total warehouse take-up in Poland reached 1.56m sqm, down by 5% on the same period last year but up by over 50% on the first quarter average for 2018-2020.

Both rising construction costs and the shrinking warehouse availability pushed rental rates up on most regional markets across Poland. The strongest year-on-year growth in prime headline warehouse rents of 16% was reported in Krakow and Tricity.