Warsaw's office market is entering a mature phase, characterised by concentration of new supply in central zones and historically low vacancy rates in the city centre. According to Savills Poland's latest report, 88,700 sqm of new space was delivered from the beginning of the year to the end of the third quarter, while the volume of projects under construction dropped by 50%.
Warsaw's total modern office stock has stabilized at 6.24 million sqm, with 46% located in central zones. Most notably, 90% of newly delivered space was in central areas, confirming the long-term trend of shifting development activity to downtown locations. For comparison, this share was below 45% in 2015-2019, rising to almost 80% in 2020-2024.
Currently, less than 140,000 sqm of offices are under construction (down 50% year-on-year), with 90% also being developed in central locations. The largest projects being realized in the capital include Upper One (35,500 sqm), V Tower (31,000 sqm), Studio A (24,000 sqm) and Skyliner II (23,000 sqm). "Warsaw's office market is entering a mature phase. Decreasing supply of new projects and the growing role of central locations mean that the center is once again dominant," says Daniel Czarnecki, Director of Landlord Representation at Savills.
Tenant activity between Q1 and Q3 reached nearly 487,000 sqm, a result close to the average of recent years. Central zones accounted for 52% of total transaction volume (262,800 sqm), while 223,800 sqm was leased outside the center. High tenant activity in the center translated into a drop in the vacancy rate for all of Warsaw to 9.7%, the lowest level since Q4 2020. The center recorded a 200 basis point year-on-year drop to 6.9%, while outside the center the vacancy indicator remained stable at 12.1%.
With limited new supply and falling space availability, rental rates are rising. In the center, asking rents range from €22.50-27.00 per sqm per month, reaching €28.00 in the best prime projects. Outside the center, Class A building rates are €14.00-18.50 per sqm per month, representing a €0.50 increase since June. "Record low vacancy levels in the center are a clear signal to tenants that they must compete for the best space," comments Jaroslaw Pilch, Director of Tenant Representation at Savills.
