Less and less offices being built in center of Warsaw

The first three months of this year on the office market, especially in the regions, were characterized by stable demand and high level of new supply. However, clearly less offices are being built in the center of Warsaw, which may mean that from the end of next year tenants will have a limited choice. The supply gap may last until 2025, which may be an opportunity for the capital's non-central locations.

"The first quarter of this year started optimistically, the market signed almost 430,000 sqm of new leases, of which about 65 percent fell in Warsaw. So we see a definite increase in the decision-making of tenants. In total, we recorded six contracts of more than 10,000 sqm each, including two exceeding 30,000 s m," Agnieszka Giermakowska, director of Market Research and Advisory Services at Newmark Poland, said.

As she pointed out, in the whole Poland relatively many offices are being built at the moment. At the end of the first quarter of this year, the new supply amounted to approximately 330,000 sqm, of which more than 100,000 sqm were in Katowice. In turn, more than 800,000 sqm remained under construction, of which 30 percent was in Warsaw.

(Newseria)