High saturation with modern office space is translating into a cautious approach among developers and a growing focus on projects with the strongest commercial potential. According to Deloitte’s “Warsaw Crane Survey 2026” report, four building permits were granted last year, three new applications were submitted, and one zoning decision (development conditions) was issued. As of the end of 2025, Warsaw’s total stock of modern office space stood at 6,232,400 sq m, marking a slight year-on-year decline of 1%. This reduction was driven by the deliberate demolition of older buildings and temporary withdrawals from the leasing market as properties were prepared for further adaptation or major refurbishment.
The number of administrative decisions has remained at a similarly low level for several years. Permits are issued in central districts—mainly Wola and Śródmieście—while in some peripheral districts there has not been a single office-building permit recorded in recent years. In total, four building permits were issued last year, two more than a year earlier. Although the number of decisions remains limited, the combined usable floor area of projects that obtained permits rose by 157% year on year to 180,000 sq m. This was largely enabled by major investments such as Warsaw One and AFI Tower.
“Warsaw’s office market has reached a stage of maturity that naturally limits the pace of new developments. What matters more today is the quality of existing space and how well it meets tenants’ needs. The smaller number of new permits reflects a more selective approach by investors, who are choosing projects with the greatest market potential. In the coming years, new developments will be delivered primarily where there is genuine demand behind them. As a result, the market’s direction will be shaped by the standard and functionality of assets, not by their scale,” says Dominik Stojek, Partner in the Advisory practice and Head of Deloitte’s Real Estate Group.
Selective investment and a focus on the city centre
In 2025, developer activity remained limited, mainly due to demand-side uncertainty—particularly regarding tenants’ long-term decisions—and the level of existing vacancy. New supply amounted to just over 80,000 sq m, around 15% less than in the previous year. Completed projects show that the market is primarily receiving high-standard developments in convenient locations that also incorporate ESG requirements. According to forecasts, conditions should gradually improve and supply is expected to increase by around 290,000 sq m by 2028.
At the same time, the scale of projects under construction remains moderate. By the end of the fourth quarter of last year, approximately 180,000 sq m of office space was under construction—down 22% year on year—with this figure including both new buildings and properties undergoing refurbishment. A clear concentration in the central part of the city is evident: more than 85% of the space under development is being delivered in central Warsaw, which supports faster leasing and reduces investment risk. The largest ongoing projects are Upper One (35,500 sq m) and AFI Tower (54,000 sq m), whose construction started at the end of 2025. The overall structure of the market is not changing materially: the largest concentration of office space remains in Wola (1,727,000 sq m), followed by Mokotów (1,457,000 sq m) and Śródmieście (1,336,000 sq m).
Refurbishments, functional changes and ESG standards as permanent features of the current market cycle
With new supply constrained, the refurbishment, repositioning and repurposing of existing buildings is becoming increasingly important. In some cases, this process also involves the permanent removal of assets from the market and their demolition. In 2025, more than 140,000 sq m of office space was withdrawn from use. In the vast majority of cases, these were buildings constructed before 2000, characterised by high energy consumption and limited adaptability. Some are being prepared for a change of use or comprehensive refurbishment, while others have been deemed uneconomic to operate further and will be demolished to make way for new developments.
Administrative decisions issued last year covered, among other things, the demolition of the Syriusz, Orion and Saturn buildings in Mokotów; Megadex at 63 Mickiewicza Street; properties at 88 Jagiellońska Street in Praga-Północ; and the Intraco high-rise at Bonifraterska Street. In the latter case, steps taken to recognise the building as a historic landmark halted demolition works. An application was also submitted to demolish the above-ground part of the building at 4 Konstruktorska Street, and the office building at 27/31 Gdańska Street will be withdrawn from the market. This trend is closely linked to the rising importance of environmental standards and energy efficiency. Increasingly stringent requirements for technical parameters and spatial flexibility mean older buildings need major upgrades to remain competitive.
“Developments that meet current ESG and wellbeing standards continue to be rewarded, and investment decisions are increasingly focused on improving quality and the long-term efficiency of the existing stock. For some older buildings—especially those with high energy use and limited adaptability—the level of capital expenditure required to stay competitive can be disproportionate to potential income. In such conditions, investors are increasingly analysing alternative use scenarios. One option is converting office buildings into residential use, which—particularly in central locations—can be economically more rational than continuing to operate a property in its existing form. Last year, at least three decisions of this type were issued,” Dominik Stojek concludes.
