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European Grocery Market Expected to Grow Significantly
Savills’ “European Grocery Market 2024” report predicts strong growth for Europe’s grocery sector in the coming years, driven by improving consumer confidence, inflation nearing target rates, and rising retail sales. The Czech Republic and Belgium are expected to see the highest retail sales growth in 2025, at 6%. In the Czech Republic, food retail sales have increased for six consecutive months, leading to expansion by major chains like Lidl and Kaufland. The market is also seeing shifts towards convenience stores and city-centre express shops, as consumers favour more frequent, smaller purchases closer to home.
James Burke, Director of Global Cross Border Investment at Savills, says: “While a lack of stock may limit the number of transactions, sale & leaseback deals and mergers & acquisitions will support activity in the market. We expect to continue to see consolidation of portfolios as the big grocery players look to grow their market share.”
Czech Republic Warehouse Rents Peak Amidst Declining Demand
Warehouse rents in the Czech Republic have doubled over the past five years but have now peaked, driven by a drop in demand and high costs. Many companies are opting for shorter-term leases or moving operations to neighbouring countries with cheaper rents. The vacancy rate in the Czech Republic stands at 2.9%, compared to 5% outside the country. Experts predict a gradual price correction, especially around Prague, where rents have reached approximately €7 per sqm. The trend towards short-term leases is growing as companies seek flexibility amid economic uncertainty.
“In the current dynamic environment, it is crucial that companies plan well in advance and constantly monitor the market,” comments Miroslav Kotek of Colliers.
Poland’s Industrial Market Shows Resilience Amidst Challenges
Poland’s industrial market recorded a lease volume of 2.7 million sqm in H1 2024, with extensions making up 40% of contracts. Despite a 33% drop in investment value compared to H1 2023, the market is gradually rebounding. Developers are focusing on acquiring existing buildings due to high construction costs, while moderate new supply and stable vacancy rates indicate a balanced market. The most active regions were Dolnośląskie, Mazowieckie, and Śląskie, with significant new contracts and renewals driving demand. Rental rates remained stable, with slight declines in some competitive areas.
Renata Osiecka, Managing Partner at AXI IMMO, comments: “Despite a slower consumer recovery and a reduction in output, Poland’s industrial market will grow gradually in the second half of 2024.”
Harden Completes Poland’s Largest City Logistics Warehouse
Harden Construction has finished the City Logistics Poznań III project, Poland’s largest last-mile logistics facility, covering nearly 44,000 sqm. Built for Raben Logistics Polska, the facility includes 41 loading docks and advanced equipment like VNA system trucks. The warehouse, completed in under seven months, supports Raben’s contract logistics and warehousing services, with sustainability features aligned with BREEAM Excellent certification. The site has been fully leased by Mars Wrigley underscoring the project’s strategic importance for the region.
“Thanks to the efforts of our entire team and the dedication of our subcontractors, we were able to deliver a top-quality warehouse space that meets all of the investor’s requirements in a short time,” said Łukasz Kozerski, Operations Director at Harden Construction.
