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In the third quarter of 2024, Poland’s regional city office markets demonstrated stability, though elevated vacancy rates remained a significant challenge, hindering development activity. The combined office stock of the eight key regional cities reached 6.73 million sqm. With 1.82 million sqm of office space, Krakow continued to lead the way, ahead of Wrocław (1.37 million sqm) and Tricity (1.06 million sqm).

Leasing activity on the Warsaw office market continues unabated despite low new supply levels, pushing the vacancy rate down to 10.7%. Meanwhile, pre-lets are on the rise, indicating growing occupier interest in office buildings under construction, reveals “At a Glance – Warsaw Office Market” for Q3 2024, the latest quarterly report from BNP Paribas Real Estate Poland.

In Q3 2024, the Polish retail market expanded by another 116,000 sqm. With average retail vacancy rates in the largest Polish cities falling and tenants posting rising turnover levels, predictions of the imminent decline of shopping centres in Poland have proven premature, says BNP Paribas Real Estate Poland in its latest report “At a Glance: Modern Retail Market in Poland, Q3 2024”.

Logistics letting markets have generally held up well despite weak economic growth which is expected to remain positive in 2024. Indeed, GDP growth started to pick up in the Euro area at the beginning of the year from +0.5% in 2023 to +0.8 % forecast in 2024.