The commercial property market in Poland is facing a commercial property glut, according to the Central Bank. Developers are adding new projects even though current supply outstrips demand.
Prices for commercial property in the country, which is the European Union’s biggest economy, have continued to slowly decline in Q3. Office vacancy rates have increased to just under 14 percent in Warsaw, according to the Polish Central Bank. In a recently-released report, the bank stated that the office market has undergone a “boom in space growth” which has resulted in what it describes as a “significant vacancy rate.” The report goes on to point out that developers are continuing to build new offices in spite of this fact.
Poland is the only EU member which was able to avoid slipping into a recession after the global financial crisis hit in 2008. As a result, it has attracted several real estate investors in recent years. Only Paris, London and Moscow outpace Warsaw in the new office development market, according to Los Angeles-based consultancy firm CB Richard Ellis.
Poland’s capital currently has 4.4 million square meters in office stock available with more than 660,000 square meters under construction in Q3, according to CBRE. The Warsaw office market is currently going through a stable period. Ghelamco is offering 50 million zloty ($14.9 million) of bonds due in June 2019 to retail investors.
