Kraków's Office Market: A Year of Unprecedented Growth in 2025
The Kraków office market demonstrated remarkable resilience and growth in 2025, marking its strongest annual performance to date. Gross take-up soared to an impressive 270,000 sqm, a 1% increase year-on-year, underscoring the city's robust appeal to businesses. While net take-up registered 100,000 sqm, a slight decrease of 13% year-on-year, the market's activity was heavily influenced by existing tenants solidifying their presence.
Key Trends Driving Market Dynamics
A significant characteristic of the 2025 market was the dominance of renewals and renegotiations, which accounted for a substantial 63% of all transactions. This indicates strong tenant satisfaction and a strategic decision by businesses to maintain their footprint in Kraków. Major industry sectors driving this demand included IT (26%), manufacturing (17%), business services (15%), and energy (14%), reflecting a diverse and thriving economic ecosystem within the city.
Illustrating this trend, major transactions involved leading global companies. Shell renewed its lease for 22,900 sqm, Motorola Solutions recommitted to 17,100 sqm, and Aptiv secured 14,300 sqm through a renewal. These significant commitments from established players highlight the long-term confidence in Kraków as a strategic business hub.
Understanding Office Stock and Vacancy Rates
Kraków's total modern office stock reached 1.84 million sqm, experiencing a modest 1% year-on-year growth. Crucially, only 10,000 sqm of new space was delivered during the year, suggesting a tightening market, especially in high-demand areas. This limited new supply, coupled with record take-up, creates a competitive environment for businesses seeking new premises.
The average vacancy rate stood at 18.4%, but this figure masks a stark polarisation across the city. The City Centre experienced a significant drop in available space, with its vacancy rate falling to just 6.4% (a 4.0 percentage point decrease year-on-year). In contrast, non-central zones saw a higher vacancy rate of 22%, with a slight increase of 0.4 percentage points year-on-year. This polarisation means that securing prime office space in central locations requires prompt action and strategic planning.
Stable Rental Landscape
Despite the high demand and record take-up, headline rents remained stable in 2025, ranging from €10.00 to €18.50 per square metre per month. This stability provides a predictable cost environment for businesses planning their expansion or relocation strategies within the city.
Strategic Implications for Businesses
The 2025 market data clearly indicates Kraków's enduring strength as a business destination. For companies looking for office space, particularly in the highly sought-after city centre, proactive engagement and swift decision-making will be crucial. The dominance of renewals suggests that existing tenants are finding value and stability, reinforcing Kraków's appeal for long-term strategic investments.
Source: property-forum.eu
