Poland: Piling on the office supply pressure
Successive years of substantial office development in the capital, Warsaw, and in Poland’s regional cities have seen a significant increase in the overall volume of office space across the country. Suggestions of oversupply, with its implications for rental growth, have been countered until recently by continued take-up of new office space, but there is some evidence that the market is becoming oversaturated. It is also clear that investors interested in central and eastern Europe are starting to switch their attention away from Poland, the largest economy in the region, and toward the Czech Republic, Hungary and Romania.
According to preliminary numbers from JLL, nearly 900,000 square metres of new office space was delivered in Poland last year, a large increase over 2015 and taking overall office space in the country to more than 9 million square metres. The record-breaking volume of new supply included the Warsaw Spire and Q22 office towers in Warsaw. 491,400 squ