The total office supply in these key markets in Poland at the end of H1 2024 was nearly 13 million sqm. Although several new office projects have been launched, developer activity remains moderate.

"Although several office projects were launched during the period, developer activity is still subdued. For example, about 215,000 sq. m . of new office space is under construction in Warsaw - almost the same as in regional cities. In the largest regional cities, office space under construction is about 210,000 sq m, a significant drop from the pre-pandemic level of 850,000 sq m," says Ewa Derlatka-Chilewicz, Head of Research at Cushman & Wakefield.

The structure of demand for offices in Warsaw in the first half of 2024 was dominated by lease renewals, which accounted for about 51% of all transactions. New contracts and lease extensions accounted for 42% and about 7%. A similar pattern was observed in regional cities, where contract renewals accounted for 49% and new contracts and extensions for 46% and 5%, respectively.

At the end of the second quarter of 2024, the overall vacancy rate in Poland stood at 14.4%, down 0.1 percentage points from the previous quarter, but up 0.3 percentage points year-on-year.

Average monthly prime office rents in central locations of regional cities ranged from €12.50 to €16.50 per square meter, with new office buildings in prime locations achieving higher rates.