Over 42,000 sq m in 5 projects was delivered to the Kraków market in H1 2021. As a result, the total stock in the capital of Małopolska approached 1.6m sq m, and the city thus maintained its leader status among regional markets. At the end of June 2021, a further 250,000 sq m was identified as being under construction, of which approximately 25% is to be delivered in 2021, with the new supply by the year end set to reach 100,000 sq m.
The first quarter of 2021 saw a continuation of the effects of the pandemic on demand and vacancy rates visible in 2020. However, increases in Q2 2021 on both the supply and demand side may indicate the beginning of a stabilisation of the market. H1 2021 take-up volume was 35% lower than in the previous year, reaching 74,000 sq m. In terms of quarterly demand in Kraków, the transaction volume in Q2 2021 was 78% higher than in the previous quarter, and 10% lower than in Q2 2020. In Q2 2021, renewals took up the largest share, accounting for 62% of leased office space. New agreements in existing buildings constituted 38% of total take up.
ThThe large share of renewals and not fully-leased new supply caused a further increase in the vacancy rate, which at the end of June 2021 stood at 15.5% (a 0.5 pp. increase q-o-q and 4.4 pp. increase y-o-y).
If you want to know more about Krakow, please have a look at the full report: https://reports.knightfrank.com.pl/strongcities_h12021