Prosperity on the office market in Lesser Poland’s capital continues, as is evident from the number of new schemes delivered to the market and those under construction and in the pipeline as well as the volume of transactions completed. Experts at BNP Paribas Real Estate Poland highlight that the market dynamics are not to any significant degree affecting rents or the vacancy rate which remain at a stable level.
“The high demand for office space in Kraków means quick absorption of newly developed offices by the market. The foundation on which the optimistic outlook for the growth of the sector is based is the business support services industry that has for so many years now been doing exceedingly well near Wawel. And indeed, it is companies from this particular industry that generate the greatest demand for modern office space”, says Małgorzata Fibakiewicz, Head of Office Agency at BNP Paribas Real Estate Poland.
Kraków has strong global position on the list of top destinations for businesses from the specialized business services sector. It is supported by, amongst others, its second place in the European ranking of most attractive locations for running BSS operations and eighth place in the global Tholons Services Globalization ranking.
“Maintaining the strong momentum as regards growth of the shared services sector in Lesser Poland’s capital is and will be inextricably linked to availability of qualified workforce. People are the greatest value for the industry. Which is also an extremely important factor – in combination with the still attractive cost of labour – that is taken into account when taking the decision on new investments and upgrading existing projects in the sector”, adds Tomasz Skrzypek, Senior Consultant, Office Agency at BNP Paribas Real Estate Poland.
Due to the mass influx of organizations from the shared services, business support services, IT and telecommunications as well as research and development sectors, the boom on Kraków’s office market has continued for several years now. The forecast increase in employment in businesses running this type of operations means the prospects for the future are extremely good. The only element that could potentially hinder further growth is low unemployment, i.e. availability of workforce, and the cost of labour.
Recognizing the potential held by the market, BNP Paribas Real Estate Poland is now expanding its local division responsible for, amongst others, coordination of the processes relating to management of Kazimierz Office Center, and which as of August this year has been in charge of finding new tenants for the Class A Diamante Plaza office building.