The land market disrupted by Covid
Covid-19 has slowed the activity of office developers but intensified competition for residential land, but the land available for warehouse development has shrunk due to increased demand, JLL says in its latest report on land prices.
The real estate market has responded to the pandemic more calmly than our research initially anticipated. At the same time, however, it should be noted that the past year has seen the performance of different market segments diverge significantly.
Tomasz Lewandowski, Land and Mid-Sized Investments Manager at JLL
By the fourth quarter, office developers had reduced what they offered for land by 15-30%. The decline in residential sales has not dampened demand for land. Residential land is changing hands at prices similar to 2019 or even higher. Average transaction prices for residential areas in Warsaw were around PLN 2,000 per m². Although retail has been hit hard by the pandemic, investors are still looking for land on which to build business parks, especially in regional cities in Poland. Average prices of undeveloped land for business parks varied between PLN 150 and PLN 500 per m². For storage land, Warsaw remains the most expensive area with prices reaching 700-800 PLN per m².