2023-01-28-莱坊-Warsaw_city_attractiveness_and_office_market_2022_8页_3mb

Warsaw: City Attractiveness and Office Market Summary

Core Content

Warsaw is presented as a highly attractive city for investment and business, with strong rankings in business-friendliness, quality of life, and accessibility. The city's office market has shown resilience and recovery post-pandemic, with tenant demand returning to pre-pandemic levels.

Key Statistics

• City Area: 517.2 sq km
• Population: 1,792,000 (2022), projected to reach 2,132,000 by 2030 and 2,249,000 by 2050
• Migration Balance: +2,526
• GDP Growth: 2.4% (2020)
• GDP per Capita: PLN 133,400 (2020)
• Average Salary (Gross): PLN 7,823
• Unemployment Rate: 1.7%

Investment Attractiveness

Warsaw holds multiple top rankings:

• 1st in the Business-Friendly City Perception Index 2021
• 2nd in the European Cities and Regions of the Future 2022/2023 - Business Friendliness
• 1st in the Infrastructure and Connectivity category - Emerging Europe Business-Friendly City Perception Index 2021
• Title of the Investor-Friendly City in the Prime Property Prize 2021
• 1st place in Europolis 2019 ranking as a Youth-friendly City
• 1st place in the CEE ranking of Money Beach - The World's Best Cities For A Beautiful Bike Ride 2021 (18th in the world)
• 1st place in Access City 2020 as the most friendly city in Europe for people with disabilities
• Among the 8 most vegan-friendly cities in the world (National Geographic)

Office Market Overview

• Existing Stock: 6.27 million sq m
• Supply Under Construction (2022): 185,000 sq m
• New Supply (2022): 233,600 sq m
• Take-Up (2022): 860,100 sq m
• Vacancy Rate (2022): 11.6% (down by 1.1 pp from 2021 and 0.55 pp q-o-q)
• Tenant Demand: Increased by over 33% compared to 2021, reaching pre-pandemic levels
• Lease Agreements: Renegotiations accounted for nearly 40% of the total volume, while new agreements and expansions made up the rest

Key Trends

• Developer Activity: Limited due to high construction and financing costs
• Tenant Sentiment: Strong, with demand returning to pre-pandemic levels
• Vacancy Rate: Expected to decrease further in 2023 due to low new supply
• Rental Rates:
  • Prime office buildings in the Central Business District: EUR 20.00-26.00/sq m/month
  • Other central locations: EUR 15.00-23.00/sq m/month
  • Outside the city centre: EUR 10.00-16.00/sq m/month
• Service Charges: Increased, ranging from PLN 16.00 to 30.00/sq m/month
• Fit-Out Costs: EUR 200-750/sq m

Investment Support

Warsaw offers a range of support services for investors:

• Individual Approach: Tailored assistance for each investment
• Back Office Support: Help with administrative tasks
• Public Aid Information: Guidance on available financial incentives

Key Areas of Support

• Information Activities: Assistance in obtaining data and industry know-how
• Office Space Acquisition: Access to municipal real estate and support in location selection
• Recruitment Activities: Collaboration with academic institutions and HR agencies
• Post-Investment Support: Ongoing assistance with operations, sector development, and CSR projects

Selected Schemes Under Construction

• The Bridge: 46,800 sq m, completion date 2025, developer Ghelamco Poland
• Lakeside: 23,900 sq m, completion date Q4 2023, developer Atenor Group
• Lixa D and E: 28,000 sq m, developer Yareal

Quality of Life in Numbers

• Cultural and Recreational Facilities: 98 museums, 37 theatres, 32 cinemas, 3,500 restaurants, over 1m sq m of retail space
• Outdoor Gyms: 308
• Swimming Pools and Ice Rinks: 56 and 16 respectively
• Beaches: 6 along the Vistula
• Public Transport:
  • 2nd in Europe in terms of public transport usage
  • 87% of citizens express positive opinion on the Public Transport Authority
  • 2 metro lines, 3 Szybka Kolej Miejska lines, 301 bus lines with 1,880 vehicles (over 230 hybrid/electric)
  • 26 tram lines with over 410 trams
  • 83% of residents consider Warsaw as bicycle-friendly
  • 4,500 city bikes and 300 bike stations
  • 3rd largest electric car system in Europe (500 cars)
• Green Areas: Over 40% of the city area

HR Perspective

• Employee Expectations: Focus on flexibility, remote work, and personalized benefits
• Remote Work Preference: 59% of respondents prefer remote or hybrid work
• Work-Life Balance: 88% of employees value it
• Desired HR Positions (Q4 2022):
  1. HR Business Partner: PLN 12,000 - 18,000 (gross)
  2. Learning & Development Expert: PLN 14,000 - 18,000 (gross)
  3. Head of HR and Payroll: PLN 13,000 - 24,000 (gross)

Contact Information

• Knight Frank Poland:
  • Commercial Agency Warsaw: T-REP Piotr Borowski (piotr.borowski@pl.knightfrank.com)
  • Strategic Consulting EMEA: Marta Sobieszczak (marta.sobieszczak@pl.knightfrank.com)
  • Research: Elżbieta Czerpak (elzbieta.czerpak@pl.knightfrank.com)
  • Capital Markets: Krzysztof Cipiur (krzysztof.cipiur@pl.knightfrank.com)
  • Valuation & Advisory: Małgorzata Krzystek (malgorzata.krzystek@pl.knightfrank.com)
  • Industrial Agency: Michał Kozdroj (michal.kozdroj@pl.knightfrank.com)
• Michael Page:
  • Contact: contact@michaelpage.pl
  • Website: www.michaelpage.pl

Additional Information

• Grow With Warsaw:
  • Website: growwithwarsaw.um.warszawa.pl
  • Email: growwithwarsaw@um.warszawa.pl
• Knight Frank Poland Research:
  • Website: www.knightfrank.com.pl/en/research/
  • Offers strategic consulting, independent forecasts, and market analysis for commercial real estate in major Polish cities.