Construction on the rise in major Polish cities

Construction activity is on the increase in the Polish cities of Wroc³aw and Kraków, where over 230 000 m2 of modern office space is under construction, according to Jones Lang LaSalle.

In its latest office market report summarising Q2 2013 trends in Warsaw and other major Polish cities, JLL noted that modern office supply in the capital exceeded four million m2 in the first half and around 188,000 m2 is expected to be delivered in the coming months.

Currently, 512,500 m2 of office space is under active construction in the major cities of Poland (excluding Warsaw), the majority of which is in Wroc³aw, Kraków and Poznañ.

Around 191,200 m2 is likely to be completed in the second half of 2013, 25% of which is already secured with pre-let agreements. Construction of 100,000 m2 of new office space has started in the major office markets, mainly in Wroc³aw (43%), Kraków (14%), Tri-City (12%) and Katowice (10%).

In Warsaw, modern office supply exceeded 4 million m2 in the first half of 2013 and around 188,000 m2 is expected to be delivered in the coming months.

Despite robust tenant demand, the vacancy rate remained on an upward trend and reached 10.5% due to the large number of projects completed in the analysed period. Nevertheless, Warsaw has one of the lowest vacancy rates among capital cities in Central and Eastern Europe.

Outside Warsaw, available office space is highest in Tri-City (56,000 m2), followed by Wroc³aw (52,000 m2) and Poznañ (45,000 m2). The lowest available space is currently in Kraków (18,000 m2) and Lublin (6,200 m2).