Total demand for offices in Warsaw during Q1 2019 was more than 140,000 sq m. Approx. 750,000 sq m of space is under construction. Tenant activity is expected to grow, and the market is waiting for spectacular projects to be finalized.
Supply - the office sector in changing times
We are witnessing the transformation of Warsaw's business skyline, which is mainly due to the construction of numerous office towers. Currently the market's total under-construction volume of 750,000 sq m should be completed by 2021. Two of the most spectacular on-going developments are The Warsaw Hub, a mixed-use project that enjoys great interest among tenants, and Varso Place including its tower, which will be the tallest building in the EU.
Tomasz Czuba, Head of Office Leasing, JLL
What’s quite distinctive about the market at the moment is that the vast majority of under-construction projects are located in the central parts of the city, which may result in a lack of new products in non-central areas in the mid-term. This is why the planned infrastructure changes are so important. They aim to improve communication between particular parts of the city, which may, in turn, lead to the creation of new office locations in the capital. An example of this, is the planned construction of a new tram line from Zachodni station to the Wilanów district.
Mateusz Polkowski, Head of Research and Consulting at JLL
Demand – Warsaw market is accelerating, with Mokotów on the rise
In terms of the distribution of demand in Warsaw’s submarkets, Mokotów took the lead, with 41,000 sq m transacted. The first three months of this year confirmed the robust conditions of this office part of Warsaw and despite the weaker streak of recent years show great potential for further development in the future.
Tomasz Czuba, Head of Office Leasing, JLL
