Poland is rapidly positioning itself as a critical logistics and production hub in Central and Eastern Europe. A recent report by Savills highlights Poland’s strategic role in the region, driven by its robust infrastructure, economic growth, and proximity to Western European and Scandinavian markets. The country is becoming an increasingly attractive destination for global corporations seeking to diversify operations and mitigate risks associated with reliance on Asia.

Economic Growth and Rising Consumer Demand

Poland has experienced remarkable economic growth, recording the fastest GDP increase among OECD countries since 1990. Household incomes have surged by 31.2% over the last decade, significantly outpacing the EU average of 5.5%. This growth has fueled consumer demand, which rose 46% over the past 10 years and is forecasted to grow an additional 13% by 2029.

The e-commerce boom has been a key driver, with online retail accounting for 8.7% of total retail sales in 2024 and projected to reach 23% in the coming years. Companies like Amazon, Zalando, Shein, and VidaXL have chosen Poland as a base for Western European and Scandinavian markets, thanks to its strategic location and advanced transport infrastructure.

Infrastructure Investments Power Growth

Poland’s logistics infrastructure has been bolstered by €229 billion in EU funding allocated between 2007 and 2027. Key developments include:

• Extensive road networks, enabling seamless transport across Europe.
• Port of Gdańsk, which handled 79.6 million tonnes of cargo in 2023, a 26.1% increase from 2022, establishing it as a major hub in the Baltic Sea region.

“Poland’s strategic location and modern road infrastructure make it the ‘centre of gravity’ for logistics facilities serving Western, Central, and Eastern Europe, as well as Scandinavia,” explains Katarzyna Pyś-Fabiańczyk, Director, Head of Industrial Services Hub at Savills.

Cost Advantages and Foreign Direct Investment (FDI)

Poland’s competitive labour costs, averaging €14.5 per hour, are 54% lower than the EU average, making it a cost-efficient choice for businesses. Over the past three years, the country has attracted an average 3.8% of GDP in FDI annually, far exceeding the European average of 0.2%.

These investments are largely focused on manufacturing, which accounts for 33.1% of total expenditure, further reinforcing Poland’s role as a key production and logistics hub.

Strong Demand for Warehousing Space

Poland’s warehousing market consistently ranks among the top four in Europe. In 2023, logistics leasing reached 3.37 million sqm, demonstrating a 31% increase compared to pre-pandemic averages, despite a temporary slowdown. The first half of 2024 saw a 19% year-on-year rebound, with stable rental rates ranging from €54 to €60 per sqm per year.

Upcoming Land Market Restructuring

Poland is set to undergo significant changes in its land market with the Spatial Planning Act taking effect in 2026. This legislation will introduce general plans designating industrial and service zones, creating a more predictable environment for investors. However, it may limit the availability of new land for logistics development, particularly in high-demand regions like Warsaw, Kraków, and Gdańsk/Gdynia (Tricity).

“We maintain a competitive advantage over neighboring Central European countries in terms of land availability, especially within Special Economic Zones,” says Rafał Bochenek, Land Acquisition Manager, Industrial Agency.

Poland’s Role in Europe’s Logistics Landscape

Poland’s emergence as a logistics powerhouse is driven by its proximity to Western markets, increasing domestic consumption, and stable operating costs. With companies focusing on nearshoring to reduce reliance on distant supply chains, Poland is expected to remain a leading growth market for logistics in Europe.

Thanks to its strategic location, modern infrastructure, and business-friendly environment, Poland is not just a gateway to Central and Eastern Europe but a crucial link in the global logistics chain.