Total new office supply in Poland’s mine largest markets rose by 125,000 sqm during H1 2024 compared to the same period of last year, with Warsaw, Wrocław and Krakow commanding the biggest share of new deliveries, according to a report by Cushman & Wakefield.
At the same time, the combined office stock of Poland’s nine largest markets amounted to nearly 13 million sqm at the end of H1 2024.
“Although a handful of office projects broke ground in this period, development activity remains subdued. For example, there is approximately 215,000 sqm of new office space under construction in Warsaw - almost the same as in regional cities. The office development pipeline in the largest regional cities stands at approximately 210,000 sqm compared to the pre-pandemic 850,000 sqm,” says Ewa Derlatka-Chilewicz, Head of Research at Cushman & Wakefield.
During H1 2024, the structure of demand in Warsaw was dominated by renewals which accounted for approximately 51% of all deals. New leases and expansions made up 42% and around 7% respectively. Regional cities posted a similar structure of demand, with renewals accounting for a large share of take-up at 49%, followed by new leases and expansions making up 46% and 5% respectively.
At the end of Q2 2024, Poland’s overall vacancy rate was 14.4%, down by 0.1 pp over the quarter but up by 0.3 pp year-on-year.
Meanwhile, average monthly prime office rents in central locations in regional cities were €12.50 to €16.50 per sqm, with new office buildings in prime locations commanding above average rental rates.
