HIGH RETAIL INVESTMENT POTENTIAL IN SEVEN OF POLAND’S SECONDARY MARKETS2011-11-25 20:41:32

High retail investment potential in seven of poland’s secondary markets

25 November 2011, Warsaw - Seven smaller cities in Central Poland offer high retail investment potential according to recent analysis by Colliers International for their quarterly report, Where to Invest in Poland – Map of Retail Gaps.

The report identifies the retail investment gaps in smaller cities of Poland with populations between 30 and 100 thousand inhabitants. Cities are analysed in terms of both existing and planned modern retail supply, as well as economic indicators, such as unemployment rate and purchasing power.

Pruszków, Otwock, Grodzisk Mazowiecki and Sochaczew were identified as the most attractive smaller cities for retail investment in the Mazowieckie voivodship. In the Łódzkie voivodship the cities included Zgierz, Kutno and Wieluń.

The report will be released in six parts. The first part covers Central Region and analyses the cities in two voivodships -  Łódzkie and Mazowieckie.

Based on the results of this analysis the map of retail gaps iscreated. The map defines new trade routes, which cover the cities with high potential due to the combination of limited supply of modern retail space and favourable economic parameters.

Retail markets in smaller cities differ significantly from each other, both in terms of their degree of development as well as local circumstances, and it can, therefore be quite difficult to compare them and obtain conclusive results. However, there are certain key elements that determine the success of a planned investment in a particular location, such as local authorities’ attitude and infrastructure development. These can be important factors that may facilitate the investment process, or, on the contrary make it almost impossible.

“Such potential gaps represent an interesting alternative to larger cities, which are already relatively well served in terms of existing retail space.  Smaller cities can present an interesting option for investors who wish to gain exposure in new and prospective locations,” said Dominika Jędrak, Head of Research at Colliers International in Poland.

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