Pan-European real-estate investment in logistics and living sectors

Poland is an interesting destination for pan-European real estate investment, demonstrating a unique combination of macroeconomic resilience, market maturity, and geographic centrality. As the largest market in Central and Eastern Europe by population, Poland offers scale and depth that few regional competitors can match. This demographic advantage is paired with a relatively mature and well-regulated real estate sector, which continues to evolve in response to both domestic needs and global investment trends.

According to data from EY, Poland’s volume of investment transactions in real estate sector in 2024 reached €4.8 billion, representing a 46% increase year-on-year. A particularly strong fourth quarter saw transaction volumes hit €2.3 billion, accounting for nearly half (48%) of the total annual volume and reflecting a 130% year-on-year increase. Investment capital in 2024 was predominantly European in origin (48%) but also included significant contributions from the US (21%), South Africa (11%), and local investors (16%).

Among the many sub-sectors of Polish real estate, logistics and living have emerged as the most attractive for pan-European investors, each driven by distinct demand fundamentals and long-term structural growth potential.

Logistics: anchoring Poland’s role as a regional distribution powerhouse
The Polish logistics sector has experienced a remarkable transformation, evolving into one of Europe’s fastest-growing industrial markets. According to EY, the total stock of modern warehouse space in Poland reached 34.5 million m² by 2024, with an additional 1.8 million m² in the development pipeline. Cushman & Wakefield projects that this figure will surpass 35 million m² in 2025, reflecting a more than 80% increase over just five years. Although development activity has declined since the post-pandemic boom of 2022-2023, supply remains high.

This demand is becoming increasingly diversified. Although logistics operator activity has normalized, it has been offset by growing requirements from retail, e-commerce, automotive, and light industrial tenants. Notably, e-commerce remains a critical driver. The surge in online shopping, evidenced by growing parcel volumes, continues to boost demand for last-mile distribution centres and cross-docking facilities. The rise of cross-border e-commerce is further enhancing Poland’s role as a gateway to Western European markets. Western Poland, in particular, is seeing the emergence of large-scale logistics hubs, as companies seek proximity to Germany and other key markets.

Additionally, nearshoring trends are benefiting Poland significantly. As manufacturers bring production closer to end markets to mitigate supply chain risks, Poland is increasingly viewed as a strategically located and cost-efficient alternative to Western Europe.

The growth of Poland’s transport infrastructure further amplifies this momentum. Expansions to the expressway network – including routes such as the S3, A1, S5, S7, and Via Carpathia – as well as substantial investment in seaport infrastructure, have elevated Polish ports into regional trans-shipment hubs. Looking ahead, mega-projects such as the Centralny Port Komunikacyjny (CPK) are expected to significantly bolster national and international connectivity, creating long-term tailwinds for the industrial sector.

Living: long-term growth in institutional housing and hospitality
Alongside logistics, the living segment – comprising institutional rental housing (PRS), student accommodation (PBSA), and hospitality – is emerging as a strategic focus for pan-European real estate capital.

PRS: early days, high potential
Poland’s Private Rented Sector (PRS) remains in its infancy but is demonstrating strong upward momentum. As of October 2024, PRS stock across six major cities stood at approximately 18,000 units, with over 11,000 units under construction, according to Cushman & Wakefield. This still accounts for less than 1% of the national rental housing stock, indicating a large untapped opportunity.

Despite structural barriers such as limited land availability, elevated construction costs, and a cultural preference for home ownership, several factors support future growth. These include improving macro-financial conditions, rising institutional-investor interest, and a chronically undersupplied residential market that has failed to meet housing demand for years.

PBSA: academic growth outpaces accommodation supply
The purpose-built student accommodation (PBSA) market in Poland is gaining traction, driven by a steadily growing student population. In the 2023/24 academic year, Poland hosted over 1.2 million students – a figure expected to rise to 1.4 million within five years, according to Cushman & Wakefield. At present, university and private dormitories can accommodate only around 10% of this population.

This gap presents a significant investment opportunity. Over 10,250 new PBSA beds are planned for delivery in the next two to four years, as demand rises not only from Polish students but also from an increasing number of international enrollees. New institutional investors are entering this segment, recognising the stability and long-term yield potential of student housing.

Hospitality: a mature segment with new international momentum
Within the living vertical, hospitality has become a particular area of focus for pan-European initiatives. Poland’s hotel market is entering a period of stabilisation following a period of robust post-pandemic expansion. In 2024, average room occupancy across Poland’s five largest cities increased by three percentage points to reach 70%, according to EY. The number of foreign tourists rose by 7% year-on-year, further underpinning strong demand fundamentals.

International hotel chains continue to expand their footprint. Over 37 new properties are planned by brands such as Marriott, Accor, IHG, and Arche. Notable brand entries include Tribe (Accor, Kraków), Mövenpick (Wrocław, Karpacz), Voco (IHG, Katowice), and Leonardo Limited Edition (Warsaw). The total supply of modern hotels in Poland now exceeds 2,583 properties, with 33 openings recorded in 2024 alone.

While the conference and the meetings, incentives, conferences and exhibitions (MICE) segment has yet to fully rebound to pre-pandemic levels, signs of recovery are visible. However, the sector still faces operational challenges, including high energy and maintenance costs, wage pressures exacerbated by labour shortages, and constrained financing options.

Conclusion: logistics and living lead Poland’s investment outlook
Poland’s real estate market stands out in the pan-European context not only for its size and maturity, but also for its sector-specific growth potential. The logistics sector, driven by the structural tailwinds of e-commerce, nearshoring, and infrastructure development, offers scale and momentum that appeal to institutional investors seeking long-term returns.

Simultaneously, the living sector – despite being at an earlier stage of development – presents a compelling proposition. The need for purpose-built rental housing, student accommodation, and branded hotel supply aligns closely with demographic trends and underpins sustainable growth.

As capital continues to flow into Europe’s most promising real estate markets, Poland is well-positioned to remain a key beneficiary – particularly in the logistics and living segments, where opportunity, demand, and investor appetite converge.