Jacek Kostrzewski, Managing Director, Gleeds in Poland, and board member of the British Polish Chamber of Commerce, talks to Contact Magazine Online.
Poland’s construction market appears to be sending mixed signals: strong output, but weaker sentiment among developers, contractors and investors. From Gleeds’ perspective, what is the real state of the market today – and where is the gap between perception and reality widest?
Poland’s construction market remains resilient, with activity supported by ongoing infrastructure and energy projects. However, sectors like residential, PRS, PBSA [private rented sector and purpose-built student accommodation] are still growing significantly. We also observe signals that market sentiment toward the office sector is becoming more optimistic, nevertheless it is still cautious due to high financing costs, margin pressure and limited local capital. While current output is still relatively strong, much of it reflects earlier investment decisions shifting toward infrastructure, energy transition and more selective private development, resulting in less dynamic growth.
The BPCC’s Real Estate & Construction working group has repeatedly heard about rising materials prices, long permitting procedures, labour shortages and insufficient guarantees as barriers to project delivery. Which of these factors is now causing the greatest friction for clients – and which are becoming easier to manage?
Labour shortages and lengthy permitting procedures remain the main challenges for project delivery in Poland, driving delays and cost overruns across both public and private developments. Labour availability is particularly difficult outside major cities, while permitting processes sometimes are hard to be predicted, nevertheless it appears to be much favourable than in other European countries.
In contrast, material price volatility has eased compared with recent years, making costs easier to forecast and manage. Overall, the industry is adapting to higher costs, but labour and administrative constraints remain the biggest source of uncertainty.
With capital still selective, and financing costs higher than in the pre-pandemic years, how are investors changing their approach to cost planning, risk allocation and project phasing? Are clients becoming more disciplined – or simply more cautious?
Investors are taking a more disciplined approach to cost planning, with greater focus on early-stage accuracy, contingency management and regular re-forecasting throughout projects. Risk allocation is also being addressed earlier, however nowadays in such rapidly changing environment flexibility and fast approach appears to be more desired attitude. Clients are placing stronger emphasis on better project control, data-driven decisions and proactive risk management.
Gleeds has identified data centres, energy and infrastructure and defence as sectors where demand is rising globally. How does Poland fit into that picture, and which of these areas offer the strongest pipeline for the Polish construction market over the next two to three years?
Poland is benefiting from growing investment in data centres, energy and infrastructure, which is reflected in the projects we support at Gleeds. We are supporting Port Polska / CPK by providing cost management expertise to the architect’s team from Foster + Partners. Defence sector is also becoming more important, mainly in strategic infrastructure, manufacturing and logistics. Overall, the strongest growth is expected in sectors driven by long-term economic and geopolitical trends rather than short-term market cycles. We are managing confidential data centre projects across Poland and the EU; Gleeds is even involved in the defence projects, benefiting from the strong experience in UK.
Data centres are seen as one of Poland’s fastest-growing real-estate segments, but they bring major challenges around grid connection, energy security, water use, cooling and local planning. What needs to happen for Poland to convert current interest into a sustainable long-term data-centre market?
Poland has strong potential to grow as a long-term data centre market due to its location, digital growth and rising demand for cloud and AI infrastructure. However, this will depend on energy supply, infrastructure readiness and a stable regulatory environment.
Key priorities include expanding renewable energy, improving grid connections and ensuring access to low-carbon, predictable energy. Energy security, water use and efficient cooling solutions will also be important.
Better communication with local communities will be needed to address environmental concerns and support project delivery. Poland’s potential is significant, but long-term growth will require coordination between government, grid operators, local authorities and the private sector.
Towarowa22 is an example of a large mixed-use Warsaw scheme combining offices, residential, public space and strong sustainability credentials. Gleeds team was engaged in the realisation of AFI Office House and now is supporting the construction of AFI Tower. What lessons from projects such as this are now becoming standard practice for developers – and what remains genuinely difficult to deliver?
Developers are increasingly expected to look beyond the building itself and consider its impact on the wider urban environment, user experience and long-term sustainability.
Many features once seen as differentiators are now standard, including stronger sustainability targets, higher energy efficiency, mixed-use design, better public spaces and occupier well-being.
The focus on placemaking is also growing, with projects judged not only on location and technical quality, but on how well they create active and attractive urban areas. The main challenge remains balancing these expectations with cost pressures and regulatory limits, as higher standards often increase both budgets and delivery timelines.
The market talks a great deal about ESG, but clients ultimately need to know what pays back. Where do you see the clearest business case for sustainable construction today – lower operating costs, easier financing, higher asset value, occupier demand, regulatory compliance, or futureproofing?
Lower operating costs remain the most instant and measurable benefit of sustainable construction. Improvements in energy efficiency, building systems and materials directly reduce utility and maintenance expenses, especially in a high and unpredictable energy-price environment. At the same time, sustainability is increasingly influencing investment decisions. Assets with strong environmental performance often benefit from better financing terms and attract more institutional investors, reflecting lower risk and better long-term stability. Occupiers are also becoming more selective, particularly in office and mixed-use segments, where sustainability is linked to ESG commitments. This can support higher retention and, in some cases, stronger rental performance.
Many Polish cities are now moving beyond the era of easy greenfield development. Brownfield redevelopment, refurbishment and change-of-use projects are becoming more common, but they are also more complex. Are Polish investors, designers, contractors and local authorities ready for this shift?
Poland is increasingly shifting toward urban regeneration, with more focus on brownfield sites, refurbishment and adaptive reuse rather than greenfield development. Investor interest is growing, although these projects are still seen as higher risk and more complex than new builds. Designers are relatively well prepared, with increasing experience in more complex projects. The main challenges lie in delivery, as refurbishment requires more flexible contracting and stronger due diligence, while permitting and coordination with local authorities can still be slow. Overall, the market is moving in this direction, but brownfield development is not yet fully standard practice.
Gleeds Polska works across several Polish offices and sectors. From your vantage point, are regional markets outside Warsaw becoming more mature in terms of investor expectations, project-management standards and sustainability requirements – or does Warsaw still set the tone?
Regional markets outside Warsaw are maturing, with higher investor expectations, more structured project management and clearer sustainability requirements. This is most visible in larger regional cities, where developers are adopting more consistent delivery and ESG standards.
Warsaw remains the benchmark, driven by international capital and a more advanced project portfolio. Regional cities are gradually catching up, but they still tend to follow Warsaw’s lead rather than set new trends, with most innovation in ESG, design and delivery models originating in the capital.
Looking ahead to future Real Estate and Construction issues of Contact Magazine Online, what would you tell a UK-based investor or developer considering Poland today: where are the best opportunities, what are the main risks, and what should they understand about the Polish market before committing capital?
For UK investors and developers, Poland offers solid long-term growth but requires disciplined execution and realistic delivery expectations. The strongest opportunities are in logistics and industrial, supported by Poland’s role as a regional hub, as well as in energy, infrastructure, and selected office, residential and data centre projects in larger cities. The market still depends heavily on relationships and processes, so local knowledge, strong partners and patience with timelines are important. Overall, Poland offers high potential, but it works best for long-term investors focused on managed risk.
