The beginning of 2025 brought a positive opening for the Warsaw office market, marked by an increase in demand and limited developer activity. According to the latest report by Savills Poland, “Warsaw Office Market Q1”, such low quarterly new supply of office space is a rare occurrence.
INCREASING DEMAND AND GROWING INTEREST IN KEY LOCATIONS
At the end of March, the total stock of modern office space in the capital reached 6.27 million sqm, with nearly half located in central areas, including 1.01 million sqm within the Central Business District (CBD). These central locations remain the main focus of tenant activity, accounting for almost 101,000 sqm out of a total transaction volume exceeding 160,500 sqm. Tenant activity in Warsaw was 16 percent higher compared to the first quarter of 2024.
Low new supply also impacted net absorption levels, which, despite more than doubling year-on-year, reached only 12,200 sqm — about one-third of the average net absorption recorded in first quarters from 2020 to 2024.
New lease agreements dominate the demand structure, accounting for 61 percent, while renegotiations fell significantly from 36 percent in Q1 2024 to 25 percent now, signalling a positive market trend and suggesting that overall office demand this year may reach a healthy level. Expansion agreements and pre-leases accounted for 9 percent and 5 percent of the market, respectively.
LOW VACANCY RATES IN CENTRAL LOCATIONS
The overall vacancy rate in Warsaw decreased to 10.5 percent, while in central office locations it dropped to 7.4 percent. By contrast, outside the centre, the vacancy rate stands at 13.0 percent.
With a lack of new supply and a declining pipeline of office space under construction (212,000 sqm – down 27 percent year-on-year), the quality and location of office buildings are becoming increasingly important. An impressive 93 percent of new office space currently under construction is located in central districts, offering excellent public transport access and top-grade standards.
Among the largest upcoming projects are The Bridge (Ghelamco, 52,000 sqm, opening in the coming months), Upper One (Strabag, 35,000 sqm, planned opening Q4 2026), and Office House (Echo Investment, 31,000 sqm, planned opening Q2 2025).
“We estimate that, in an optimistic scenario, around 340,000 sqm of new office space could be delivered to the Warsaw market by the end of 2027. Several factors will influence the pace of this supply, notably project financing security and the extent of pre-leasing agreements,” said Daniel Czarnecki, Head of Landlord Representation, Savills.
Rents in prestigious central office buildings remain between €22.50 and €26.00 per sqm per month, with the best properties commanding rates exceeding €27.00 per sqm per month. In the Służewiec area, rates are more competitive, ranging from €13.25 to €15.00 per sqm per month.
Given the decreasing availability of high-quality offices and limited new supply, upward pressure on rental rates is expected.
“While the start of the year brought cautiousness in launching new projects, it has also created an opportunity to redefine the role of the office. We are seeing growing interest in spaces that not only meet companies’ operational needs but also support organisational culture and team engagement. Flexible office spaces and comfortable coworking environments are becoming increasingly popular, meeting the expectations of new generations of employees. In the coming quarters, those who can combine prime locations with adaptability to new trends will have the competitive edge,” commented Jarosław Pilch, Head of Tenant Representation, Savills.
