Savills: Warsaw office rents set to drop further this year

While development activity in most of European markets remains is dragging, Warsaw’s office set a new supply record in 2016, with Savills predicting in a recent report that 480,000 sqm could be completed. The real estate agency warns that demand is not keeping pace with supply. “Despite the fact that tenants were highly active in 2015, we don’t expect net absorption to match new supply, which will push vacancy rates up on the Warsaw market and continue putting pressure on rents, particularly in older buildings,” says Wioleta Wojtczak of the Savills research team.