Savills opens office in Krakow
Savills has opened an office in Krakow. The newly opened office of the international real estate advisor is located in a modern office building K1, in the city center.
The Krakow location is the fourth branch of Savills in Poland. The existing branches are based in Warsaw (headquarters), Wrocław and Poznań.
"We see the potential of Krakow and we are glad that we will take an active part in the city’s development. Krakow’s office market is the largest regional market in Poland, offering more than 800,000 sqm of leasable office space. It is also one of the most dynamic markets in the country: since 2010 the supply of office space in the city has doubled. In coming years, Krakow will not only maintain a high growth rate but it will also accelerate, exceeding 1,000,000 sqm of office space in 2017. This is why I believe that Krakow’s leading position on the regional markets is not threatened and the city will continue to attract tenants, developers and investors," said Tomasz Buras, Managing Director at Savills Poland.
Despite this rapid growth, demand exceeds supply. The vacancy rate for years remained the lowest among regional markets - at the end of the first quarter the vacancy rate stood at 5,7 percent which is almost half of the average rate in regional cities (10,7 percent). In 2015 every third sqm of the leased office space in regional markets was located in Krakow, where over 170,000 sqm of space was leased. The city attracts tenants from the IT and BPO/SCC sectors which offer employment to nearly 50,000 people making Krakow the largest BPO/SCC market in Poland. Krakow was chosen by companies such as Shell, Caphgemini, CH2M, Motorola, ABB, Akamai, Delphi, Aon Hewitt, Brown Brothers and Heineken.
The development of the office market in Cracow is triggered by high availability of well-educated workers. The labor market’s favourable situation, is proven by one of the lowest unemployment rate in the country at 4,4 percent and relatively low labour costs (ca. 20 percent lower than in Warsaw).
The most active developers in the market are: Buma, TPG (TriGranit) Avestus, Echo Investment and Skanska.