Katowice City Attractiveness and Office Market Report
City Attractiveness:
- Demographics and Economy: Katowice has a population of 278,100 (projected to reach 261,050 by 2030) with a GDP per capita of PLN 85,131. The unemployment rate is 1.2% (as of February 2025), and the average gross salary is PLN 11,644.87.
- Investment Attractiveness: Ranked 9th in "Top 10 Large European Cities of the Future 2025," 2nd in "Forbes Business-Friendly Cities," and 1st in "Polish Cities of the Future 2050" (school category). Katowice Special Economic Zone offers income tax exemptions and various investment incentives.
- Quality of Life: Ranked 4th in "Best city to live" (Business Insider) and 2nd in "Europolis" (Schuman Foundation). The city has 206.35 km of cycling infrastructure and 50% green areas. Key projects include Katowice 2030, Green urban transport initiatives, and the Jerzy Kukuczka Himalayan Centre.
Office Market:
- Supply and Demand: The total modern office stock exceeded 772,000 sq m at the end of Q1 2025, with no new completions recorded. Approximately 34,000 sq m remains under construction. Q1 2025 saw 18,000 sq m of office space leased, a 14% increase from the previous quarter and a 60% growth from the same period the previous year.
- Vacancy Rate: The vacancy rate decreased by 2.1 pp to 21.1% in Q1 2025, reflecting strong demand and limited new supply.
- Rents: Rents remained stable, ranging from EUR 10.00 to 14.50/sq m/month, with service charges between PLN 14.00 and 26.00/sq m/month.
HR Trends:
- Succession Challenges: Up to 44% of Polish construction and real estate companies face succession challenges. The sector, dominated by domestic private capital (75% of revenues), is experiencing a slowdown and uncertainty. Key issues include leadership competencies and generational shifts at senior levels.
- Succession Planning: The importance of succession planning has grown significantly, with up to 45,000 entrepreneurs in the sector potentially reaching retirement age. Companies are increasingly open to external candidates for leadership roles.
- Recruitment Insights: Top executive roles command average base salaries of PLN 60,000 to 80,000 per month, with performance-related bonuses and equity options common in incentive structures.
Investment Support:
- Investors Assistance Department: Provides comprehensive support for investors, including business services, residential and commercial development, start-ups, and SMEs. Offers customized solutions and an experienced team to help investors achieve their goals.
- Key Projects: Initiatives include the District of New Technologies, Katowice Gaming and Technology HUB, and the Jerzy Kukuczka Himalayan Centre.
Conclusion:
Katowice remains a highly attractive city with strong economic growth, investment incentives, and a high quality of life. The office market is experiencing robust demand, leading to a decrease in vacancy rates, while rents remain stable. However, the construction and real estate sectors face significant succession challenges, necessitating strategic recruitment and leadership development to navigate future market dynamics.