Poland has developed into one of the most dynamic real estate markets in Central and Eastern Europe. As one of Poland’s most prominent regional cities, Kraków continues to draw attention from investors from around the world. In this interview, Rafał Oprocha, Director and Head of the Kraków Office at CBRE Poland, discusses the key location advantages, ESG trends, and the most attractive asset classes for investors.

1. How do you currently assess Kraków’s attractiveness as an investment location compared to other cities in Poland and across Central and Eastern Europe?

While Kraków, like many regional cities, is currently facing challenges related to elevated vacancy rates, a more nuanced analysis reveals a different picture. When we zoom in on specific micro-locations within the city, it becomes evident that the most desirable areas from a tenant’s perspective actually offer very limited availability. This highlights the importance of evaluating the market not just on a macro level, but by closely examining individual office zones and specific projects. In these prime locations, demand remains strong, and well-positioned assets continue to perform well. Therefore, Kraków maintains its appeal as an investment destination, especially for those who understand the dynamics of its submarkets.

2. What structural location advantages does Kraków offer at the moment, in comparison to other cities in Poland?

Kraków stands out among Poland’s regional cities due to several key structural advantages. First and foremost, it is one of the country’s leading academic hubs, home to numerous universities and research institutions. This ensures a steady pipeline of highly educated, multilingual talent, which is a major draw for international companies, particularly in the business services and technology sectors. Additionally, Kraków benefits from a well-developed transportation network, including international air connections and efficient public transit. The city also boasts a well-established business services ecosystem, with a strong presence of shared service centres and IT, R&D and BPO operations, which further enhances its attractiveness for both occupiers and investors.

3. How rapidly is the demand for “green” buildings growing in Kraków and how is this trend influencing the development of new projects?

The demand for sustainable, environmentally certified office buildings in Kraków has grown significantly in recent years and is now a defining trend in the market. According to CBRE’s report “Is sustainability in real estate worth it?”, over 70% of the city’s total office supply is now certified, placing Kraków among the leading European cities in this regard. Moreover, nearly 90% of leasing activity is concentrated in certified buildings, underscoring the importance of sustainability for tenants. As certification becomes the norm, the focus is shifting toward the quality and grade of these certifications. Tenants are increasingly looking for tangible benefits—such as energy efficiency, cost savings, and improved workplace well-being—rather than just a label. Certifications like BREEAM and WELL are particularly sought after, and ESG compliance is becoming a critical factor in both investment decisions and property valuations.

4. Which asset classes are currently the most attractive to investors in Kraków? What factors are driving the interest in specific segments?

In the current market environment, investors are showing a clear preference for core and core-plus assets, particularly in regional cities like Kraków. These are properties that are well-leased, located in prime areas, and backed by long-term rental agreements with reputable tenants. Such assets offer stability and predictable cash flows, which are especially valued in times of economic uncertainty. While investor sentiment remains cautious and highly selective, properties that meet these criteria continue to attract interest. Additionally, ESG-compliant buildings are gaining traction, as sustainability credentials increasingly influence investment strategies and asset valuations.