First, it is worth explaining the concept of commercial real estate. What exactly is it? Commercial real estate is a facility where you can run a business or make profits from renting it. Commercial real estate includes: offices, warehouses, galleries, shopping arcades, etc. For a property to be called commercial, two conditions must be met:
- first: it must remain uninhabited
- secondly: it must be used to conduct business activities.
In the case of modern construction, you can often come across combined buildings, i.e. buildings that perform several functions. It may be that there are commercial premises on the ground floor and residential premises on the remaining floors.
Types of real estate on the commercial market
Commercial properties are among the most frequently sold properties (right after residential buildings). Potential investors have plenty to choose from. What are the most popular types of real estate on the Polish commercial market?
- Service and utility premises
- Warehouses
- Production halls
- Real estate intended for offices
- Entire buildings (e.g. shopping malls, office buildings, hotels)
- Plots intended for commercial development
Based on the above examples, it is clear that commercial properties are those that are purchased in order to make profits: from renting or running a business.
Sale of commercial real estate in Poland – what does it depend on?
The situation on the Polish commercial market is closely related to what is happening not only in Poland, but also globally. Sales of commercial real estate decreased, which was undoubtedly influenced by the outbreak of the war in Ukraine , but not only that. The persistently high inflation and increasing interest rates by central banks are also important. All this resulted in an increase in real estate prices, but also in all expenses that companies have to incur in connection with the use of the premises (e.g. rent, electricity or internet fees). It is therefore not surprising that investors are a bit more cautious about purchasing real estate and wait until the market returns to balance. In the meantime, it is worth keeping your finger on the pulse and tracking the properties that are already available.
Commercial real estate market in Poland – what influences it?
The factors that have the greatest impact on commercial real estate prices include three: location, stay and supply, and the economic situation.
Location
Location is a factor that largely determines the price of a commercial property. It is assumed that facilities located in the center are usually much more expensive than those located on the outskirts. The central location attracts investors due to convenient access and proximity to service points.
Demand and supply
The price of real estate depends on demand and supply. If a region is developing economically, the demand for commercial real estate increases. However, the supply depends on the number of available premises and the willingness of investors to sell or rent them.
Economic situation
Inflation and an economic slowdown may cause investors to be more cautious in making decisions. In turn, companies whose budgets will be limited will look for savings, e.g. by choosing smaller and cheaper premises.
The commercial real estate market is a dynamically developing sector of the economy that provides opportunities to invest as well as run a business. The price of commercial real estate depends on many factors. Before making a decision to buy or rent, it is worth analyzing them all carefully.