Developers more careful when starting new office builds: JLL

The total stock of office space in Poland amounted to 11.7 million sqm at the end of last year, of which 5.8 million sqm were offices outside of Warsaw. Throughout 2020, 700,000 sqm was completed on the Polish office market, including over 390,000 sqm on regional markets in 36 office buildings.

“Currently, 1.2 million sqm of the surface is under construction. Over 700,000 sqm is being built outside Warsaw and this result is lower than in the previous years when the value ranged from 800,000-900,000 sqm. This is mainly due to the fact that developers are continuing the construction work they have already started, but are not launching many new projects, which may lead to a supply gap in some cities within 2-3 years. Interestingly, developer activity outside Warsaw is currently concentrated very strongly, as much as 27 percent in Katowice, which is only the fifth-largest office market in Poland,” Hanna Dąbrowska, Market Analyst, JLL, explained.

The largest projects completed in Poland in 2020 include, among others The Warsaw Hub multifunctional complex (89,000 sqm, Ghelamco Poland), the Mennica Legacy Tower in Warsaw (47,900 sqm, Golub GetHouse), and two Face2Face buildings in Katowice (45,800 sqm, Echo Investment).

(WBJ)