The second line of metro and the office market

Rondo 1 skyscraper at Rondo ONZ in Warsaw
Rondo 1 skyscraper at Rondo ONZ in Warsaw
The new line of metro does not only mean some changes for passengers but also for the office property market in Warsaw.

The opening of the second line of metro in Warsaw, which was held on 8th March this year, was certainly a great event. This new communication means considerably facilitated the travelling and every-day commuting. The second line of metro does not only indicate some changes for passengers. It is also an impulse for the segment of office real estates. The new investments will be realized in the neighborhood of the Rondo ONZ and Rondo Daszyńskiego metro stations. The first address is more prestigious but the prices will be more affordable for all tenants in that second location.

 

The surroundings of the Rondo ONZ and Rondo Daszyńskiego metro stations, that is the area of the Wola district, will certainly gain the greatest profits because there are many undeveloped properties and many post-industrial areas there which are definitely ready for a new development. Moreover, there will be some new investments in the city center and in the Praga district but their number will not be so substantial – judges Łukasz Jędrychowski, expert for commercial properties in Nuvalu Poland.

 

The second line of metro in Warsaw is over 6 kilometer long and it offers seven stations, including one interchange station with the first line of metro. Thanks to the investment's completion, the underground railways started to run to the Praga shore of the Vistula river. However, Jędrychowski points out that there will be no considerable changes in the Praga district in respect of the property market. The development in the neighborhood of the two right-bank metro stations is not dense enough that it is not impossible to conduct new and big investments there, similarly to the city center. The two fringe stations located in the Wola district constitute a perfect location for new offices.

 

We have some really big properties there which allow us to realize business parks and even bigger investments – explains Jędrychowski. – Rondo ONZ and Rondo Daszyńskiego are at a distance of one station from each other but this first location is a more prestigious address and prices are definitely the most expensive in the city. Rondo Daszyńskiego, in turn, includes districts which may be classified as outskirts of the center and prices there are much more cheaper.

 

At present, the rents at Rondo Daszyńskiego are estimated at the level of 14-19 euro per one sq. m of office area – adds Jędrychowski. First and foremost, the differences result from the age of the office – they will be the most expensive in new offices which are currently being realized. However, these are still much lower amounts in comparison to the prices in the city center. According to report published in February this year by Savills, the rents in the offices located in the very heart of Warsaw amount to 22-23 euro per sq. m.

 

Jędrychowski also emphasises that the impact of the second line of metro on the property market reminds the effects of launching the first line. It has an influence on the office and residential property market. It is a great catalyst for changes in the whole city and also a reason of increased interest in a certain region of the city. It is noticeable on the residential market that the prices of real estates are higher in places where a metro is located. The same situation concerns offices, however, that process is much slower because there are definitely less offices than apartments – explains Jędrychowski.

 


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