According to “Office Occupier – Office Market in Kraków”, a report published by real estate advisory firm Newmark Polska, office leasing activity in Kraków reached a record high in 2024, with most tenants choosing to remain in their current locations, as lease renewals accounted for 58% of last year’s total office take-up. Developers continue to depend on pre-lets being secured before commencing the construction of new office projects. With still relatively significant volumes of unoccupied space in existing buildings, tenants can relatively easily find suitable office accommodation in prime locations.
In 2024, total modern office stock in Kraków amounted to over 1.83 million sqm, a modest 1.3% year-on-year increase. Last year’s office completions totalled less than 24,100 sqm, marking a decline of over 75% year-on-year and the lowest level of new supply volume in the history of the Kraków office market. Over half of this total came from Building C, which contributed 13,000 sqm, within the Brain Park office complex. It was also the only office completion exceeding 10,000 sqm in the city last year.
“New developments planned for 2025 are expected to add just under 10,000 sqm to the market, the lowest new annual supply since records began. Most office projects currently under construction are unlikely to be delivered before early 2026. With office availability in existing buildings still significant and renewals accounting for nearly 60% of last year’s total take-up, development activity remains subdued,” says Patryk Kowalkowski, Advisor, Newmark Polska.
Just over 51,000 sqm is currently under construction, up by nearly 128% compared with 2023 but over 45% below the five-year average of more than 93,000 sqm. Of the office commenced projects, 52% is located in the Centre, with the remaining 48% in the South-East office zone.
In 2024, leasing activity in Kraków hit an all-time high, with nearly 267,000 sqm of office space leased, representing an increase of almost 33% year-on-year and of over 36% above the five-year average of approximately 196,000 sqm. Kraków also accounted for more than 37% of all transactions recorded in Poland’s key regional city office markets in 2024. By comparison, Wrocław, which took second spot, captured just under 21% of the total leasing volume.
“Kraków continues to attract strong interest from the modern business services and high-tech sectors. In 2024, IT accounted for 31% of total office take-up, followed by financial services (18%), manufacturing (14%) and professional services (12%). Last year’s take-up in Kraków was dominated by lease renewals, which made up 58% of all transactions. New leases accounted for 37%, while owner-occupier deals and expansions contributed 3% and 2% respectively,” says Anna Madejska, Advisor, Newmark Polska.
Notably, 2024 saw no pre-lets which could have given a strong impetus to developers to launch new office projects.
At the end of December 2024, the Kraków office market recorded a high vacancy rate of 19%, up by 0.1 pp from the third quarter of 2024 but down by 0.8 pp year-on-year. Office availability in existing buildings stood at over 347,200 sqm. Looking ahead, the city’s vacancy rate is expected to gradually edge down in the coming quarters, primarily due to constrained new supply.
“Office rents held firm in Kraków throughout 2024. At the end of December, monthly rental rates were in the range of EUR 13.50–15.00 per square metre, with the highest of EUR 15.50–17.50 recorded in the Centre. Occupier demand continues to focus on prime office buildings with cutting-edge technologies and strong ESG credentials,” says Agnieszka Giermakowska, Research & Advisory Director, ESG Lead, Newmark Polska.
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