Poland
RE_Guide_2016_final
RE_Guide_2016_final
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Polish Real Estate Market<br />
Office market in <strong>Poland</strong><br />
5 000 000<br />
25<br />
4 500 000<br />
Supply m 2<br />
4 000 000<br />
3 500 000<br />
3 000 000<br />
2 500 000<br />
2 000 000<br />
1 500 000<br />
1 000 000<br />
12,3<br />
5,5<br />
10,8<br />
8,6<br />
15,9<br />
6,9<br />
13,2<br />
18,4<br />
10,4<br />
20<br />
15<br />
10<br />
5<br />
Rents in EUR/m 2 /month<br />
500 000<br />
-<br />
Warsaw Krakow TriCity Wroclaw Poznan Lodz Katowice Szczecin Lublin<br />
Supply Rents Vacancy rate<br />
0<br />
Source: EY<br />
Focus on Warsaw<br />
The modern office market in Warsaw<br />
started to develop rapidly at the beginning<br />
of the 1990s in response to the Polish<br />
political transition and economic reforms,<br />
followed by a growth period during recent<br />
years, in which the Warsaw area played a<br />
major role.<br />
Because of its central functions and<br />
convenient location, the Polish capital<br />
city has received a significant share of the<br />
inflow of foreign capital. Large foreign<br />
companies, including various financial<br />
institutions, consulting companies, as<br />
well as international firms, usually choose<br />
Warsaw as a location of their headquarters<br />
in <strong>Poland</strong>. In addition, Warsaw has<br />
traditionally been the most important<br />
administrative and business center for<br />
domestic companies. This led to rapid<br />
growth of demand for modern office space<br />
in the city, which in the period from 1990<br />
until the first half of 1998 resulted in 98%<br />
to 100% occupancy rates as well as one of<br />
the highest rental levels for office space<br />
among European cities.<br />
Supply<br />
The end of 1998 marked the first dramatic<br />
date for modern office space, when over<br />
the course of one year the modern office<br />
supply doubled from the 300,000 m 2<br />
completed between 1989 and 1997 to<br />
680,000 m 2 . Two years later, stock rose to<br />
approximately 1,360,000 m 2 and although<br />
54% of this was in the city center, 2001<br />
marked the end of the central location’s<br />
dominance in new annual supply. With<br />
the exception of 2003, annual delivery<br />
of modern office space in non-central<br />
locations exceeded central, and the trend<br />
continued through 2013. At the end of first<br />
half of 2013, the total modern office space<br />
in Warsaw has exceeded 4 million m 2 , with<br />
non-central locations accounting for around<br />
70%. Warsaw remains the most mature<br />
4 | <strong>Poland</strong>. The real state of real estate
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