Cushman & Wakefield has released a report on the 2018 Warsaw office market, which revealed that investment reached a new record high of €1.7bn across 28 transactions.
Office yields in the Polish capital are now below 5%, which is the lowest on record, while occupier activity remains strong in Warsaw with 858,000sqm transacted, an all-time high.
New office supply totalled only 233,000sqm delivered across 20 new projects, while co-working providers opened a total of 37,600sqm of space in 15 facilities across Warsaw last year.
Michał Wachowicz, consultant, capital markets at Cushman & Wakefield, said: “Investment activity hit a record high on the Polish commercial real estate market in 2018, surpassing the €7bn mark. The office market also set new highs with its investment volume at €2.6bn, accounting for 37% of 2018’s total and reflecting a growth of 88% year-on-year.
“2018 was also a record-breaking year in terms of office yields which in Warsaw broke the barrier of 5.0%, standing at 4.75%, an all-time low in the history of the Polish commercial real estate investment market. Of all regional cities, Krakow saw the highest values with prime office yields at 5.75%.”