Strong demand for office space is keeping Warsaw’s developers in high-gear, according to a new report by Walter Herz, which predict another 450,000 sqm of new office space to be delivered to Warsaw this year. That would bring the total supply of office space in the city to more than 5.1 millions square meters. Poland’s second office market, Kraków, isn’t far behind, with 300,000 sqm of space under development.
The total office stock in the country’s biggest cities to more than 8.6m in the first half of the year. At the same time, take up surpassed 600,000 sqm for that same period. Poland’s strong economic performance, together with attractive rents levels and a generous supply of skilled labor continues to attract investors to its various office markets, writes Walter Herz. The country’s annual GDP growth rate stands at 3.6 percent, but low inflation and an improving labor market are other attractions for investors.
This spectacular growth, and arrival of a stream of BPO and SSC operations, has been enabled to a large degree by significant infrastructure investments, including city roads, new highways and airports.
More than 70 percent of BPO/SSC centers operating in Poland have been set up by foreign investors, and they represent 80 percent of the employment in this sector. Walter Herz estimates the number of foreign investors running their back offices in Poland to be close to 600.
