Polish office market rebounds with strong start to 2026

Poland's commercial real estate market, particularly the office segment, experienced a significant recovery in the first quarter of 2026, with transaction volumes and demand for office space showing a clear upward trend.

Bartłomiej Zagrodnik

According to Walter Herz, the investment market saw a robust start to 2026, with commercial real estate investments exceeding €1 bn in Q1—a 40% year-on-year increase and the strongest Q1 performance in several years. While the number of transactions decreased, their overall value grew from €635 mln in Q1 2025. The office sector alone recorded €245 mln in transactions, a 40% increase from the previous year, with activity in both Warsaw and regional markets.

Notable recent office transactions include the acquisition of Lixa D by a Swiss family fund, the €100 mln purchase of Royal Wilanow by Wood & Company, and Arkea Real Estate's acquisition of Brain Park A in Krakow. This follows a trend of increasing investor activity observed since 2023, with total transaction volumes more than doubling in 2024 compared to 2023. In 2025, the office sector led the market, accounting for nearly 40% of the total transaction volume with €1.8 bn.

In 2026, investors from the United States and the CEE region play the dominant role. Polish investors remain active, focusing mainly on smaller transactions.

In Q1 2026, Warsaw saw over 130,000 m2 of office space leased, demonstrating consistent strong demand in the capital. However, new office development remains limited compared to previous boom periods. Only 43,000 m2 of modern office space was delivered in Warsaw in Q1 2026. Currently, approximately 200,000 m2 is under construction in Warsaw, including projects such as Skyliner II, Upper One, and AFI Tower. Another 220,000 m2 is under development in regional markets, with about 95,000 m2 expected to be completed in 2026. Developers are largely launching new projects only after securing pre-let agreements.

Bartłomiej Zagrodnik, managing partner and CEO at Walter Herz, commented: “The value of investment transactions recorded this year indicates a market recovery. We expect this trend to continue, along with an increase in investment activity supported by the growing involvement of domestic capital and the gradual return of core capital and prime transactions. However, investors remain selective, choosing buildings that stand out in terms of quality and long-term stability. They are seeking security, targeting prestigious locations and assets characterised by strong operational resilience and energy security.”

Zagrodnik also admits that, on the one hand, the current geopolitical situation may negatively affect this process by slowing further interest rate cuts, thereby limiting the potential to reduce the cost of capital. On the other hand, the conflict in the Middle East may paradoxically redirect some capital to Europe, including Poland.