Poland - Office and Investment Market, H1 2020

Since the beginning of 2020, the effects of the COVID-19 pandemic on regional office markets have been increasingly visible as the months have gone by. After vigorous tenant activity in the first quarter of the year, the second quarter brought a slowdown. New supply volume was some 35% lower than in H1 2019, despite developers remaining active. At the end of June 2020, over 1m sq m of office space was under construction. It is therefore expected that the upcoming quarters will see the completion of a number of office projects. After several quarters with the vacancy rate below 10%, Q2 2020 saw a 0.7 pp. q-o-q increase, with the rate up to 10.2%. That said, a clearer picture of the overall scale of the epidemic’s impact on the office real estate market will emerge by the beginning of 2021.

If you want to find out more, read the report by Knight Frank about Office and Investment Market in Poland in the post Covid era.