Poland’s office market is experiencing a robust recovery, with Warsaw emerging as one of Europe’s most dynamic hubs for both occupiers and investors, according to global property consultancy Knight Frank.
Strong economic growth, stabilising vacancy rates, and renewed investor confidence are driving renewed interest in the sector.
Market Highlights:
- Poland’s GDP is projected to surpass USD 1 trillion in 2025, placing the country among the world’s top 20 economies.
- Leasing activity rose 15% year-on-year in H1 2025, reaching 689,000 sq m, approaching 2019 record levels.
- Warsaw’s CBD vacancy has fallen to 7.1%, reflecting tightening availability.
- Prime office rents in Warsaw range from EUR 18–35 per sq m/month, with further growth expected.
- Over €2 billion has been invested in Polish offices since 2024, surpassing other sectors, highlighted by the €280 million sale of Warsaw UNIT.
Charles Taylor, CEO of Knight Frank Poland, said, “We are witnessing a real resurgence of Poland’s office market. Warsaw, in particular, benefits from strong occupier demand, limited new supply, and competitive pricing compared to Western Europe. Prime office transactions in Warsaw, priced between EUR 4,500 and 6,000 per sq m, are highly attractive compared to Frankfurt, Munich, and Paris, where yields and rents differ significantly.”
Occupier Market on the Rise
The occupier market is building momentum, supported by limited new supply. Office availability is tightening, particularly in prime Warsaw locations. Demand is increasingly focused on modern, ESG-compliant, and hybrid-friendly office spaces, reflecting evolving workplace trends and tenant priorities.
Investment Market Back in Focus
Investment flows are accelerating, led by Core and Core+ assets. Warsaw remains the primary investment destination, while regional cities such as Kraków are also attracting interest, exemplified by Stena Real Estate’s acquisition of the High5ive complex. Competitive pricing of EUR 4,500–6,000 per sq m in Warsaw, combined with prime yields of 6%, makes the city highly attractive relative to Western European markets, where yields are lower. Regional markets offer prime yields of 7.5%, with further compression expected as competition intensifies.
Outlook
With a strong economy, resilient occupier demand, and growing international and private capital inflows, Poland’s office market is on a clear path to resurgence. Warsaw, in particular, is cementing its position as one of Europe’s leading office destinations and is set to attract increasing investor interest in the coming years.
