C&W: weak outlook for Warsaw office market

The outlook is generally positive in the Central European office markets of Czech Republic, Hungary, Romania, Poland and Slovakia, however Warsaw is anticipating the weakest rental growth, a report by Cushman & Wakefield indicated. The best performing CE markets are expected to be Prague and Budapest, with 0.8% per annum rental growth each. In Prague, this modest rental growth is likely to be back loaded with stability over the next few years while Budapest is set for some moderate increases in 2015-2016 on the back of little rental movement seen recently. The weakest rental growth outlook is for Warsaw at -4.1% per annum over 2015-17, where supply-driven concerns are the most apparent.