Thursday, 28 August 2025
In the first quarter of 2025, demand for office space in Poland’s key markets increased by 25% compared to the same period last year, despite a continued slowdown in new office development. Tenants remain focused on high-standard properties in central locations, while the market sees minimal additions to existing stock.
In Warsaw, total office leasing activity reached over 160,000 square metres in Q1, with new lease agreements making up the majority of transactions. In regional markets, demand was even stronger, amounting to nearly 180,000 square metres. More than half of this figure came from lease renegotiations, indicating sustained interest in existing office locations.
Mateusz Strzelecki, Partner and Head of Tenant Representation at Walter Herz, notes that financial terms, accessibility, and location continue to drive office space decisions. He also highlights the limited pipeline of new developments, estimating that only around 135,000 square metres of new space will be added to Warsaw’s total office stock this year. Older, less efficient office buildings are gradually being removed from the market, partially offsetting the modest pace of new construction.
Investor activity has slowed, but lower interest rates and improved financing conditions could support future growth. The presence of international investors completing large transactions in Poland is also expected to contribute to a gradual market recovery.
In terms of completions, the first quarter of 2025 saw minimal additions. Warsaw’s total stock, currently standing at 6.39 million square metres, grew by just 5,600 square metres with the completion of a single project. In regional cities, the only new delivery was an office building in Poznań.
Approximately 210,000 square metres of office space is now under construction in Warsaw. Key developments expected to be completed in 2025 include The Bridge (51,400 sqm) and Office House (31,100 sqm). Other ongoing projects are Upper One (35,900 sqm), Studio II Phase (26,600 sqm), Vena (15,400 sqm), Skyliner II (22,000 sqm), and the V Tower refurbishment (26,200 sqm).
Among regional markets, Cracow and Wrocław are leading in both demand and development. Cracow, with a total office supply of 1.81 million square metres, recorded demand of 57,000 square metres in Q1 and currently has around 86,000 square metres under construction. Wrocław, with a 1.42 million square metre stock, saw 44,000 square metres leased in Q1 and has 27,000 square metres of space being built.
Rental rates and service charges have remained stable since late 2024. In central Warsaw, monthly asking rents range from EUR 18 to 27 per square metre, while in non-central locations, they fall between EUR 10 and 17. Rents in regional cities vary from EUR 9 to 19.5 per square metre per month.
Vacancy rates differ by location. Warsaw’s overall vacancy rate has dropped to just above 10%, with only 7% of offices available in central areas. In outer districts, such as Służewiec, vacancy exceeds 20%. In regional cities, the average vacancy rate remains above 17%. Cracow and Katowice are experiencing a slight decline in vacancy, while Wrocław and Poznań have seen vacancy rates increase.
