Despite a cautious approach from developers in 2024, Kraków has maintained its dominance as Poland’s largest regional office market. The city’s strong market potential continues to attract tenants, who leased nearly 267,000 sqm of office space last year, approaching the record-breaking levels of 2019.
Kraków’s Office Market in Numbers
At the end of 2024, Kraków’s total office stock reached 1.83 million sqm, accounting for 14% of the national office volume. The largest concentration of office space (41%) is located in the southern part of the city.
However, new supply was at a two-decade low, with only 24,000 sqm delivered in 2024. Currently, 52,000 sqm of office space is under construction, with the largest ongoing project being Tischnera Business Park (Stalprodukt), offering 28,500 sqm.
“A positive signal from tenants is the volume of lease agreements signed in 2024. The total of nearly 267,000 sqm was at pre-pandemic levels and represented a 33% increase compared to 2023. In Q4 alone, more than 98,000 sqm was leased,” says Aleksandra Markiewicz, Associate Director at Knight Frank.
Leasing Trends: High Demand, Focus on Renegotiations
The leasing structure remained consistent with 2023, with lease renewals dominating transactions, accounting for 58% of signed agreements.
- New leases represented 37% of the total leased volume.
- Expansions accounted for only 2%, highlighting limited tenant growth.
“The restricted new supply in 2024 led to a decline in the vacancy rate. By Q4, it stood at 19%, down 0.8 percentage points compared to the same period in 2023. Given the continued strong demand and limited new supply, we expect further declines in vacancy rates in the coming quarters,” adds Michał Kusy, Junior Consultant, Research at Knight Frank.
Rental Rates and Operating Costs
As of late 2024, asking rental rates for office space in Kraków ranged from €10.00 to €18.00 per sqm per month, with the upper end showing a rising trend. Meanwhile, service charges remained stable, between PLN 16.00 and PLN 29.00 per sqm per month.
Kraków’s strong demand and limited new supply suggest continued stability and potential rental growth in the office market for 2025 and beyond.
Source: CEO.com.pl
