2024-09-24-莱坊-Kraków_city_attractiveness_and_office_market_Q2_2024_5页_837kb

Summary of Kraków Report (H1 2024)

City Attractiveness

Kraków is highly attractive for investment and quality of life, ranking among top cities in Europe. It boasts status as a UNESCO World Heritage site, European Capital of Culture, and a City of Literature. With a population exceeding 800,000 and a growing forecast to 756,470 by 2025, the city benefits from strong economic indicators, including a GDP growth rate of 16.6% in 2021 and a low unemployment rate of 2.1%. Infrastructure includes extensive transport networks, green spaces covering 60% of the built-up area, and incentives such as tax relief for R&D and investment support, making it a favorable environment for businesses.

Office Market Dynamics

Kraków's office market is the second largest in Poland, with 1.82 million sq m of modern office space accounting for over 14% of the country's total supply. In H1 2024, leasing activity increased by 13%, with 93,000 sq m of space leased, primarily through renewals and new deals. Vacancy rates remained steady at 14.4% overall, but decreased to 11.9% in the city center. New supply slowed significantly, with only 14,000 sq m delivered in H1 2024, down from the five-year average. Asking rents range from EUR 10 to 16 per sq m per month, with service charges between PLN 16.00 and 29.00 per sq m per month.

Human Resources and Recruitment Trends

The labor market faces challenges in recruiting skilled workers, particularly in manufacturing and IT sectors, with a report indicating a shortage of about 2.5 million workers annually needed from abroad. Recruitment errors and difficulties in finding qualified Polish employees lead to increased costs. Experts emphasize adopting Human Leadership—a management style focused on empathy, communication, and technological proficiency—to improve retention and productivity. Key positions in demand include automation engineers, process engineers, and quality managers, with salaries ranging from PLN 12,000 to 27,000 gross monthly.