Businesses looking for office space in one of Poland's key cities will find the Krakow market increasingly dynamic. Data from Q1 2025 highlights a positive trend, reinforcing the city's appeal as a commercial hub.
Leasing Activity Soars
The first quarter saw a substantial surge in leasing activity, with 56.6 thousand sqm of office space leased across Krakow. This represents a significant increase of 13 thousand sqm compared to the same period last year, signalling growing tenant confidence and demand. The most active sectors driving this leasing volume were manufacturing and the computer/hi-tech industries, indicating strong growth in these areas within the city.
Falling Vacancy and Availability
Good news for landlords and a sign of market absorption, the vacancy rate continued its downward trend. It reached 17.64% at the end of Q1 2025, a decrease of 1.3 percentage points quarter-on-quarter and a more substantial drop of 2.5 percentage points year-on-year. Despite the fall, this still translates to a considerable 323.7 thousand sqm of available office space across the city, offering options for various business needs.
Stable Rental Rates
Potential tenants will be pleased to know that rental rates have remained stable. Modern properties located in prime areas of Krakow are typically commanding rents between 16 and 19 EUR per sqm per month. This stability provides a predictable cost environment for businesses planning their budgets.
Development Pipeline and Tenant Interest
While developers are proceeding cautiously with new projects, approximately 67 thousand sqm of office space is currently under construction. This limited new supply, combined with growing interest from tenants, particularly for centrally located properties, suggests that competition for prime spaces may intensify in the future. The sustained demand underscores Krakow's attractiveness as a business location.
Source: eurobuildcee.com
