Warsaw Focus on Business
A Window on the region:
Due to its location in the centre of Europe Warsaw provides investors with easy access both to the Western markets and to the dynamically developing countries to the East. It is an excellent starting point for making investments in the region. Great logistic facilities make starting cooperation with domestic and foreign companies extremely easy. Being the country’s capital, Warsaw possesses the best communication junction in Poland, both on the national and international level. It is the only city in Poland that disposes of a modern international airport. For companies a Warsaw address automatically means higher prestige and better image. The capital of Poland is perceived as a modern place where the most important events take place, the most recent trends emerge, the most important meetings and conferences are held and the most vital decisions are made. Out of all Polish cities Warsaw is the most widely recognisable one around the world. It is in Warsaw that the most important state institutions have their central offices.
Warsaw is a recognised service centre, especially in the field of finance, advisory and consulting services, marketing, advertising, hotel industry and telecommunications. It has the biggest number of inhabitants and registered companies (and therefore potential clients) and generates the biggest demand for products and services in Poland. Warsaw’s strength can be very clearly seen when we look at the results of a ranking of the most attractive places for investors in Europe entitled “European Cities & Regions of the Future 2008/2009” prepared by experts from “Financial Times”. In the category of costs of running business activities Warsaw came first, outstripping not only other big Polish cities, but also Prague in the Czech Republic, which has always been perceived by the investors as a very attractive place to invest their capital.
A significant part of foreign investments to be made in Warsaw or in the vicinity of Warsaw in the nearest future include projects pertaining to the BPO sector. The Polish capital is one of the most frequently selected locations for off shoring centres of large multinational corporations. In the coming years Warsaw expects to welcome foreign investments in various areas. The representatives of the construction, hotel, banking, financial and technology sectors as well as developers are planning to invest in the capital city of Poland. The majority of foreign companies which are already active in Warsaw think that the Warsaw market is an attractive one and plan to expand and develop their activities in this city.
Warsaw Stock Exchange
The Polish stock exchange is a major European capital market and one of its leaders in the Eastern and Central Europe. Until the end of May this year a total of 172 companies debuted on the European stock exchanges, out of which nearly 30% in Warsaw. The past year turned out to be an exceptional one for the Warsaw Stock Exchange in terms of the number of newly-listed companies and the turnover volume – the trading floor welcomed 81 new companies and the value of offers soared up to 18.2 billion PLN. The value of share deals amounted to over 482 billion PLN, which is the best result in the whole history of the Stock Exchange in Warsaw. According to data provided by the Federation of European Stock Exchanges (FESE), WSE occupies the second place in Europe in the category of IPO debuts, preceded only by London.
Supporting Entrepreneurship
Warsaw cares for investors. The most important organisations of entrepreneurs and employers, sector organisations and chambers of commerce have their head offices in the capital city. In cooperation with non-profit organisations the municipal authorities undertake large-scale activities to promote development of entrepreneurship and to help young and promising companies. Numerous business clusters concentrating companies, specialist suppliers, service providers and companies operating in related sectors are active over the territory of Warsaw. Companies operating in clusters compete with each other, but at the same time cooperate in the areas where common goals may be reached. Thanks to this they are able to increase their productivity, attract new resources, exchange experiences and stimulate their innovation potential. Presently there are 7 large clusters in Warsaw. owners of SME’s in Warsaw may count on assistance provided by credit guarantee funds and loan funds. They make it easier for them to gain access to financing in the form of bank credits and loans. The funds provide guarantees to entrepreneurs who are creditworthy and grant loans to companies experiencing difficulties in obtaining a bank credit due to the inability to provide required collateral. In 2007 the Mazowsze Credit Guarantee Fund provided 231 guarantees for the total amount of about 42 million PLN and granted loans amounting to about 70 million PLN to Warsaw entrepreneurs. Newly-created companies are supported by academic incubators of entrepreneurship which offer premises for rent, provide office services and other business- supporting services and offer assistance in acquiring funds. Thanks to them young companies may mature more easily and stand on their own feet outside of the incubator environment.
Warsaw Real Estate Market
Warsaw real estate market which covers the capital city itself and other locations situated in its close vicinity constitutes the biggest market of new flats in Poland. Nearly one third of all flats built in Poland are erected and sold in Warsaw. As far as its value is concerned, the Warsaw market outclasses all real estate markets from other parts of Poland. Investing in the real estate sector in the capital city offers a potential of the highest profit, as compared to other Polish cities. The development of the real estate market in Warsaw is facilitated by the condensation of capital, the banks’ willingness to finance the purchase of land and the interest rates on loans which are maintained on an advantageous level. Favourable demographic situation, good condition of the Warsaw labour market and growing income of the society also constitute quite important growth factors. long-term perspectives of real estate market development in Warsaw are good. Irrespective of some cyclical sways the scale of the market should experience a slow growth – until 2010 the average annual volume of transactions should exceed 20 thousand flats within Warsaw’s administrative borders (and 25 thousand in the metropolis area). Warsaw is a leader as far as the volume of logistic real estate is concerned. According to the Goodman’s report Poland offers the best development perspectives in this sector in the whole region of Central and Eastern Europe. In the first quarter of 2008 the storage centres disposed of surfaces amounting to 4.2 million meters square. Most of real estate of this type is located in the vicinity of the capital city - in Warsaw itself we can talk about nearly 475 thousand meters square, and in the closest proximity of the city we can find storage surfaces of about 1.4 million meters square. At the beginning of 2007 office space resources in Warsaw amounted to about 2.56 million meters square. According to the current forecasts in the coming years the number of office buildings handed over for use will increase in a significant way. Developers are now particularly active in the Mokotów district where about 188 thousand meters square of modern office spaces will be handed over for use in 2008. A large number of new investments will also be completed on the outskirts of the city centre. The supply of modern retail spaces in Warsaw amounts to over 1 million meters square, spread over 30 commercial centres. All possible types of retail outlets are located in Warsaw. They include hypermarkets, large commercial and outlet centres, and commercial parks. Warsaw outstrips all the other Polish cities as far as the area of commercial centres is concerned – it is almost 600 meters square per 1000 inhabitants.
Warsaw like the other cities in Poland has also thrown its hat in to achieve the prestigious title of European Cultural City of Europe for 2016, another show of the confidence and sheer desire to be recognised as a dynamic and established member of the family of capital cities in Europe.
Article elaborated using data from the following reports: Jones Lang LaSalle 2007 and Reas konsulting 2007
The coming years will constitute a period of great investments for Warsaw. New communication infrastructure, redevelopment of the city centre or building a number of scientific centres will cost billions of zlotys. Another billion will be spent on investments related to organising Euro 2012 Football Championship.
NORBERT JAŹWIŃSKI
Head of the Investor Service Office of the Investor Service Department