Kraków's booming market

Kraków's authorities have presented their estimates concerning the anticipated supply of modern office space to be delivered in the city over the next few years. According to the data from City Hall, Kraków could soon see over 20 new office buildings. With a number of projects now under construction and many more on the drawing board or awaiting construction permits, Kraków is strengthening its position as an attractive office market.

"This trend is going to continue since the demand for office space in Kraków still exceeds the supply," said Paweł Skałba from the office space department of consultancy Colliers International Poland.

According to a recent report by real estate advisory DTZ, Kraków's existing office stock amounted to 263,800 sqm in mid-2007. Almost 40,000 sqm of office space was delivered in the first half of the year alone, due to the completion of projects such as Newton, Kraków Business Park 400 and the first phase of Rondo Business Park. In 2008, office space delivered in Kraków could amount to a record-breaking 90,000 sqm, the report said.

Kraków has seen a growing demand for office space in recent years, a substantial proportion of which has been coming from international technology companies. Firms such as Motorola, IBM, Comarch, Hitachi and Google have already established service centers in the city. In consequence, Kraków has also seen a falling vacancy rate, with the majority of new office space being leased before its completion.

"Kraków is a very attractive place for large international companies to locate their BPO centers. With a large population of university students, the city offers easy access to well-educated workers who are looking for jobs in the neighborhood rather than elsewhere," said Skałba.

Work places

Major office projects in the pipeline in Kraków

Project Office area (sqm)         Due for completion

Centrum Biurowe Azbud         22,000 2008/2009

Cystersów Gallery       22,000 2009

Zabłocie Business Park            15,000 2009

Galeria Kazimierz Office Building         12,600 2008

Kraków Business Park 800     12,500 2008/2009

Kraków Business Park 1000   12,500 2008/2009

Edison  10,300 2008