Nearly a quarter of the total supply is in the Center zone (434,700 sqm), while the greatest construction activity is currently concentrated in the Southwest and Center zones, where 31,700 sqm and 24,000 sqm of modern space are under construction, respectively. Savills experts point out that by the end of 2027, the city’s office market could grow by as much as about 100,000 sqm of new offices, but 65,200 sqm is currently under construction, and developers depend on the market situation to start building more projects.

The largest impact on the structure of demand in H1 2025 came from large lease renegotiations – they accounted for as much as 71% of total transactions, while new contracts accounted for 21%, expansions 7% and pre-leases remain marginal (1%). The average volume of renegotiated space reached nearly 3,000 sqm, reflecting the low level of new supply and tenants’ caution combined with cost calculations for furnishing a new office.

At the end of June, 317,500 sqm of vacant space was available in Krakow, which means a vacancy rate of 17.3% citywide. The lowest vacancy rate remains in the central part of the city (only 7%), while in other zones the rate reaches up to 25%. It is worth mentioning that almost 1/4 of the vacant space, comes from buildings delivered to the market after 2020.

Rental rates for the best modern offices in Krakow are in the range of 14-17 EUR/sqm/month, and in the most prestigious projects they reach up to 19.50 EUR/sqm. The increase in rents in the most attractive projects is offset to tenants in the form of richer incentive packages, such as rent exemptions or larger budgets for arrangements.

– From the perspective of tenants, the Kraków market today offers very limited choice in top-class office buildings, especially in the inner city. As a result of low new supply and tenants’ increasing awareness of the cost of furnishing a new office, we are seeing a high proportion of renegotiations in the market. The gradual decline in vacancy rates is creating upward pressure on rents, which is partially offset for tenants by richer incentive packages. Tenants in Krakow, especially in the business services or new technology sectors, are paying more and more attention to the quality of space, flexibility of contracts and the possibility of long-term expansion in one facility. These are the factors that will shape competition among landlords in the years to come –

says Jaroslaw Pilch, Head of Tenant Representation, Savills Poland.

Limited new supply with stable demand in the coming quarters will most likely lead to a further decline in vacancy rates and a gradual increase in rents, especially in projects located in the center and best connected to the rest of the city.

– Krakow maintains its status as the office market leader among Polish regional cities. Such strong demand growth, with zero new supply in the first half of the year and limited development activity throughout 2025, favors property owners and is already translating into falling vacancy rates and rising rents. The key transactions are large renegotiations, which indicate the city’s particular ability to retain existing tenants and are a proxy for long-term market stability. The result is likely to be an increase in developer activity in the coming years –

adds Wojciech Mazur, Associate Kraków Region, Savills Polska.

Download report: Savills MiM Krakow Office Market H1 2025