Colliers divided Europe

Pic Echo Investment
Pic Echo Investment
Colliers divided office markets in Europe into four categories. Poland is in the group of stable countries.

According to the newest Colliers International report, Dublin is a city in which the highest growth in rates for one sq. m was recorded in Europe in the second half of 2014. The prices of lease in the capital of Ireland increased by 14,3 per cent. Therefore, the cost of one-year lease of one sq. m totals 480 euro. On the opposite pole there is the office market in Saint Petersburg where prices decreased by 25,2 per cent. At the same time, the stabilization of rents on the market in Poland has been observed.


The authors of Colliers International report titled „Office Snapshot H2 2014” divide the property market into four categories:


„Under pressure” markets: include part of the Southern Europe and the eastern part of the continent (Russia and Ukraine). The year 2014 indicates for these markets a large decrease in prices of lease in main business centers of this region: Sankt Petersburg, Minsk, Moscow and Kiev. The political instability and the economic decline are the reasons of increase in volume of uninhabited flats in this area.


 „Stable” markets: include so called German Great Six, Paris, Central and Eastern Europe and part of Scandinavia. The last year brought about increase in rents for Germany which maintain on a fixed – high level. Paris, in turn, did not change its prices of lease concerning office areas in spite of disturbing signals about condition of French economy. According to Colliers analysts, the nearest months will not hold any change in rent rates in Germany and France.


„Recovering” markets: include office markets in the Netherlands, Ireland and Spain. They benefit from increased activity of economies and improving social moods. 


„Above curve” markets: dominated by Great Britain. One may observe on its area a constant increase of rent prices in centers like London City (by 8,3 per cent), West End (by 2,1 per cent), Manchester (by 1,6 per cent), Birmingham (by 1,8 per cent) and Bristol (by 1,8 per cent). Colliers envisages that the upward change should maintain in the nearest 12 months.


According to „Office Snapshopt H2 2014”, the second half of the year was stable in the capital of Poland. The average monthly rate for letting of one sq. m in the most prestigious buildings in the best locations in Warsaw totaled 24 euro. Moreover, the lease of office in the center amounted to 16 euro. In Cracow, the areas in the highest class buildings totaled 15,5 euro for one sq. m every month and in other cities the average amount was 13,7 euro. In Wrocław, it was respectively 14,8 and 13,5 euro.


Warsaw will gain over 1 million sq. m of office areas in the nearest three years. It will have an influence on increase of the rate of free areas. At present, it totals ca. 13,26 per cent. This rate will certainly increase but it should not exceed the range of 18 to 18,5 per cent. The rents are currently falling but I think that they will stop on a certain level, below which the owner will not go down. The tenants may expect some offers with different benefits – says Paweł Skałba, Partner and Director in Department for Office Areas, Colliers International.

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