Wrocław breaks a record

Wrocław (pic pixabay.com)
Wrocław (pic pixabay.com)
What are the records of the first six months of this year on the office market in Wrocław? Let’s see how the experts of Knight Frank comment the situation on the real estate market in the capital of Lower Silesia.

This midyear is a continuation of the positive trends from 2016. That period was record-breaking due to both demand and new supply. Admittedly, only 22 800 sq. m of new office buildings were completed within the first six months of this year, however, we have identified over 207 000 sq. m under construction at the end of June 2017, 53 000 sq. m of which can be completed even this year – says Agata Holak, Senior Consultant, Market Research Department, Knight Frank.

The end of 2016 and the beginning of 2017 were record-breaking due to tenants’ activity; 91 700 sq. m of office areas were rented in Wrocław within the first two quarters of 2017 – as much as the average annual volume of demand recorded in the years 2012-2016 and 75 per cent more in comparison to the analogical period in the previous year. Such high demand and limited new supply resulted in decrease in the vacancy rate, which totaled 8.5 per cent at the end of June 2017, that is by 4 percentage points less in comparison to the end of the previous year – says Marta Mądry, Leasing Manager, Department of Knight Frank in Wrocław.

According to the experts, we should expect a slight adjustment of the vacancy rate by the end of this year, which will result from the envisaged completion of several new buildings.

Prime headline rents in Wrocław are maintained at a stable level. This level is comparable to other regional cities in most cases, however, there are slightly higher rents in single buildings (in comparison to the average level recorded in other cities).

 


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