Poland as a strategic hub for logistics and industrial investment

Amid ongoing geopolitical and macroeconomic uncertainty, Poland remains one of the most attractive investment destinations in CEE, as evidenced by our data for the first quarter of this year. While the commercial real estate sector has yet to experience a full rebound, logistics, industry, and data centres are clearly emerging as key sectors. This is driven by Poland’s excellent location, the availability of high-quality space and a skilled workforce, international dynamics such as the growing importance of friendshoring, regulatory changes within the EU (such as the Clean Industrial Deal and Omnibus I and II packages), and competitive investment incentives. All of this positions Poland as a key location on the radar of investors seeking stable and future-proof destinations.

Investment landscape: selective recovery
In Q1 2025, Poland attracted €600m in commercial real-estate investment – a 50% increase year-on-year. Although the Czechia led the region with €1.5 billion, Poland maintained a strong second position in the CEE region and is likely to reclaim the top spot soon. Macroeconomic analyses show that Poland stands out in the region with the highest projected GDP growth in 2025. With a forecast growth rate of 3.3%, it outpaces the Czechia (2.0%), Hungary (1.8%), Romania (1.5%), Slovakia (1.7%), and Bulgaria (1.8%). Additionally, in May 2025, the National Bank of Poland began a cycle of interest rate cuts in response to declining inflation and slower wage growth, improving financing conditions and encouraging further investor activity.

The investment market recovery in the CEE region is selective – while the residential and PRS sectors are growing dynamically, investors in the office and retail sectors remain cautious, although signs of recovery are emerging. In Poland, an increasing number of transactions are being initiated in three key sectors due to capitalisation rate adjustments, improved access to bank financing, and an investment thesis based on sustained economic growth. We are seeing growing interest from CEE-based capital, as well as a selective return of global and Western European investors.

Warsaw stands out as a mature market, with yields of 6.25% for logistics and offices, and 6.50% for shopping centres. Activity is also increasing in the data-centre sector, driven by the development of AI and the need to locate IT infrastructure closer to end users.

Logistics and industry – foundations of growth
Poland boasts the largest warehouse market in the CEE-6 region – 34.1 million m² of modern space, with an additional 1.7 million m² under construction. The vacancy rate remains healthy at 7.4%, and prime rents – averaging €4.20/m² – are competitive compared to Czechia (€7.45/m²) and Hungary (€5.50–€5.74/m²).

Poland’s extensive transport infrastructure – motorways, three seaports, numerous airports – and central location in Europe make it a natural logistics hub. Furthermore, the availability of skilled labour and the development of regional urban centres enhance location flexibility for investors.

Investment incentives – a systemic advantage
Importantly, Poland offers some of the highest levels of investment support in the EU, often playing a decisive role in location selection. Public aid intensity for large companies ranges from 15% to 50% of eligible costs. In less developed regions, cash grants of up to 15% are available, and investors can also benefit from CIT exemptions for up to 15 years and job creation grants – up to €9,500 for R&D projects. And under the EU’s European Green Deal, the Temporary Crisis and Transition Framework (TCTF), adopted to support member states’ economies in the context of Russia’s full-scale invasion of Ukraine, offers support of up to 35% of costs for strategic sectors (batteries, solar panels, wind turbines, heat pumps). Other instruments include the Green Credit (FENG.03.01) and Energy Efficiency (FENX.01.01) programmes, supporting the energy transition.

Geopolitics, friendshoring, and new EU regulations
Shifting geopolitical realities, including trade tensions between the US and China, and EU regulations (such as the Clean Industrial Deal), are influencing companies’ location strategies. Friendshoring – relocating production to politically stable countries with shared values – is gaining importance. As an EU and NATO member, Poland is seen by many investors as a safe and predictable location. Despite bordering war-torn Ukraine, this has not deterred investment in Poland.

Additionally, new non-price criteria in public and private procurement – including low emissions, supply chain resilience, and European preference – promote local production. This presents an opportunity for Poland, given its strong industrial and warehouse base. Companies investing in low-emission technologies can benefit from a ‘green premium’ and improved competitive positioning.

Who is investing and where?
In recent months, Poland has strengthened its position as a strategic industrial hub in Central and Eastern Europe, attracting a number of high-value investment projects in sectors such as offshore wind, electromobility, advanced materials processing, and renewable energy. A key catalyst for this wave of announcements was the introduction, at the end of 2024, of national legislation implementing the TCTF, which allows for public support of up to 35% of eligible costs. This new support instrument has significantly reshaped Poland’s investment competitiveness map – many of the announced projects would likely not have been located in the country without such attractive public aid.

In Szczecin, Spanish company Windar Renovables is building its first Polish factory for components used in offshore and onshore wind turbines. This 600 million złoty investment is crucial for the development of the offshore sector and will employ over 400 people. Meanwhile, American corporation Ascend Elements plans to invest over 5 billion złotys in a battery materials plant in Opole, receiving a record 1.22 billion złotys in public support under the TCTF. In Nysa, Ionway (a joint venture between Umicore and PowerCo) is carrying out a €1.7 billion investment in cathode materials for electric vehicles, supported by €350 million in aid. In Bielsko-Biała, Flex has launched a new facility for data-centre infrastructure, while Kingfa is investing in advanced polymer materials in Szprotawa. At the same time, Mercedes-Benz is expanding its Jawor plant with a new electric-vehicle factory, with an investment exceeding €1.3 billion, supported by workforce development grants. LG is also expanding its energy-storage systems production at its campus near Wrocław. The FMCG sector is not lagging behind – Philip Morris is modernising its Kraków plant with an investment of nearly 1 billion złotys, establishing strategic production capabilities for European and Asian markets.

Hungary – Poland’s key regional competitor
Within the region, Hungary remains Poland’s main competitor in the race for major industrial investments. The country has been highly effective in attracting Chinese investors, often leveraging close diplomatic ties and a targeted economic policy. Hungary offers simplified procedures, a flexible administrative approach, and competitive support packages, which are particularly appealing to Asian firms seeking production footholds within the EU. We are currently observing a marked increase in interest from Chinese investors, driven by geopolitical tensions, the trade war with the US, and the need to diversify global supply chains. Poland and Hungary are natural beneficiaries of this trend, but it is the quality of the investment environment and the predictability of processes that ultimately determine which location secures the project.

Challenges and outlook
Despite its many strengths, Poland still faces several challenges. High energy costs and the country’s continued reliance on coal are among the most significant barriers for some investors. Although the energy transition is progressing, Poland still lags behind many EU countries in this regard. Rising labour costs and workforce shortages in certain regions may also influence location decisions.

On the other hand, administrative processes – including obtaining environmental and construction permits – are often faster and more transparent in Poland than in many other countries in the region, providing a significant operational advantage.