04 April, 2010
DTZ has recently issued the second edition of the Skyline Tracker report (Spring 2010), which compares official developers' plans with current development progress of office space in Warsaw. The slow down in new office developments recorded over the last few months reflects the global economic downturn. The volume of annual deliveries in 2010 will be much smaller, amounting to only 192,000 sq m. According to developers’ plans, the annual supply in 2011 is going to reach 300,000 sq m, however the completion of approximately 190,000-200,000 sq m is much more realistic.
Out of the commercial property sectors, offices are holding up well with potential take-up coming from large-scale occupiers looking to seal new leases at good prices. The seasonal adjustment of rental levels recorded over the last few months with demand picking up slowly show that the Warsaw office market is likely to recover by 2011-2012, provided the overall economic situation improves.
The Upper South (Mokotów) subzone followed by South West (Jerozolimskie corridor) and City Centre remains a key office location with a majority of the pipeline projects located there.
As in the first, the same methodology was applied to the second edition of the DTZ Skyline Tracker based on data gathered from developers as well as regular site inspections. The schemes are sorted according to their maturity in the development process, ranging from the early planning stages to construction and occupancy permit.
Download the report for further details.