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Warsaw : Tenants still in a winning position - H1 2014

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Warsaw : Tenants still in a winning position - H1 2014

New office space completions including 17 buildings provide additional 190,000 sq m to the existing stock in Warsaw. The construction activity is very strong in the city and by the end of 2014 over 123,000 sq m is planned to be delivered.

Total volume of leasing transactions on the Warsaw office market exceeded 259,000 sq m in H1 2014 which proves healthy level of take up. Upper South remains the most popular zone with 37% market share.

In H1 2014 the vacancy rate increased by 1.2 p.p. in comparison to H2 2013 and stood at the level of 13.4%.
Prime asking rents are at a level of EUR 24- 25.5 per sq m per month in the central locations and EUR 14- 16 per sq m per month out of the city centre.

Record level of supply, strong development activity and high availability ratio, favour tenants and lead to strong competition between landlords.

Strong development activity may lead to the temporary oversupply and growth of availability ratio in office buildings, which will strengthen the downward pressure on effective rents.

Source : DTZ (Groupe UGL)

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