Polish office markets on the rise
Even though Warsaw is the leading market in Poland, statistics also show a positive outlook for other big cities in the country. According to an analysis released by international advisory firm JLL, development is present in all Big 7 Polish office markets - Warsaw, Kraków, Wrocław, Tri-City, Katowice, Poznań and Łódź, which continue attracting investors, tenants and developers.
Various factors have had a strong influence on the dynamic development present in Poland's major markets. Oxford Economics predict the country's Gross Domestic Product is due to grow by 3.5-3.6% between 2016 and 2018. Real estate projects are offered at highly competitive prices compared to Western European countries, which is noticeable in higher yields and also significantly lower capital values per square metres. Rated 17th most transparent real estate market worldwide in the Global Real Estate Transparency Index 2014, Poland attracts international giants including well-known companies from the finance, accounting, services, telecommunication and IT sectors who prepare long-term plans for Poland, and, as a consequence have become long-term tenants of office schemes. So Poland has one of the best levels of net absorption in Europe.
A wide range of different investment products offered at attractive prices is also a key factor. Tomasz Trzósło, Managing Director of JLL Poland, commented: ”Warsaw is the biggest business and financial centre in both Poland and Central and Eastern Europe. The city plays host to business operations from global corporations as well as the biggest developers and investment funds. Other major cities are also developing and managing to attract companies from the business services sector, and international capital investment on the real estate market”.