AXI Immo has released its latest report on the Warsaw office market for the first half of 2025, showing the city’s continued resilience amid changing economic conditions. Despite a modest level of tenant activity, with total take-up reaching approximately 300,000 sqm, leasing remained steady and focused largely on central locations. Around 85,000 sqm of modern space was delivered in the first six months, with 93% located in central zones, primarily through flagship projects like The Bridge and Office House. The vacancy rate across the city stood at 10.8%, with 140,000 sqm under construction by the end of June.
New leases and expansions made up 57% of transactions, while renewals and renegotiations accounted for the remaining 43%. The Central Business District and City Centre together attracted 55% of total leasing activity. Służewiec, the most active non-central zone, generated 24% of overall demand, with a higher share of renewals. Tenants from finance, technology, manufacturing, and business services led leasing activity, favouring offices that balance cost-efficiency with modern amenities.
The report notes a significant drop in development pipeline volume, with 140,000 sqm under construction—down 48% year-on-year. Major ongoing projects include Upper One, V Tower, Studio A, and Skyliner II, with most new developments concentrated in the Śródmieście and Wola districts.
The vacancy rate in central zones fell to 7.8% year-on-year, although it edged up slightly compared to the previous quarter. In contrast, older office areas such as Służewiec and Jerozolimskie continue to struggle with higher vacancies, prompting owners to consider modernisation or functional repurposing.
Rents in prime central locations remained stable, ranging between €19 and €26.50/sqm/month, and exceeding €30/sqm/month for the most prestigious addresses. In non-central zones, rates started from €9.50/sqm/month. The report also highlights growing interest in sublease options with flexible terms, as tenants seek quicker and more cost-effective solutions.
Jakub Potocki of AXI Immo notes a growing polarisation in the market, with strong interest in premium city centre offices, as well as flexible, ready-to-use spaces. Relocations remain cautious, with many companies opting to renew existing leases.
