2016 will see further office developments

The stable economic status of Poland and its growing importance in Central and Eastern Europe is still encouraging foreign investors to show a greater interest in our office market. Warsaw is, of course, the main beneficiary of the influx of international capital, but regional cities have been gaining in significance over the last few years. A large number of projects carried out in the capital city and, as a result, the growing vacancy, have resulted in a reduction of effective rent rates. I think that this trend will continue into 2016. The strong competition on the Warsaw market is persuading investors to become more involved in large regional cities. Apart from the dominant group of large office facilities that are currently under construction or planned, the smaller, cosier office building segment has also been developing very well. 2016 will bring more changes to the office market. Warsaw could see a further growth in vacancy related to the increasing amount of new office space available. Other locations on the office map of the capital city will gain in significance at the cost of has been up to now the main office district, Służewiec. The focus will shift to Wola district, which is experiencing a renaissance thanks to the construction of the second line of the underground, among other factors. The owners of some poorly leased office properties close to Galeria Mokotów are likely to start turning them into apartments. The lack of public infrastructure, which is always the case in residential areas, will be an additional challenge for them.