Poland’s second-largest city is considered an attractive place to do business. In the latest edition of the Antal and Cushman & Wakefield – BEAS report, Kraków’s average score for all factors influencing companies’ investment decisions was 7.6/10, up by as much as 1.1 points from the previous edition of the 2021 survey. The favourable rating is influenced by the advanced network of scientific and research units and the well-educated graduates associated with them, well-prepared and developed infrastructure, and the second largest base of modern office space after Warsaw.
The next, fourth edition of the Business Environment Assessment Study (BEAS) report, authored by Antal and Cushman & Wakefield and partnered by Baker McKenzie, PAIH, Employers of Poland, Pro Progressio and Vastint, reveals the investment plans of heads of companies operating in Polish cities for 2023-2025. Poland has long maintained and strengthened its leading position in attracting investment, including foreign investment.
Kraków’s investment potential continues to grow
The key factors for business development in Cracow are its proximity to the airport, the A4 highway and a rich network of railroad connections, including international ones. An extensive infrastructure, such as the investment areas of Nowa Huta Przyszłości (the New Steelworks of the Future) and the dynamically innovative Krakow Technology Park, are additional city assets. In addition, the presence of many renowned universities translates into a highly specialized workforce, bringing numerous investors to the city to create new jobs.
Krakow is well-regarded on a European scale. It received a high ranking in the prestigious “fDI” magazine ranking as one of the top ten large European cities of the future. It was distinguished for its friendly business environment, rich human capital and high quality of life, which attracts investors worldwide. The number of investment projects in the city’s modern business services, financial, and high-tech industries is steadily growing, and more recently, research and development centres and start-ups are also on the rise. The BSS sector in Krakow includes more than 260 companies with about 100,000 employees, and more than 500 technology companies with nearly 50,000 IT employees also operate here, says Jerzy Muzyk, Deputy Mayor of Krakow.
Business services and IT professionals most sought after
Kraków’s employment potential was highly rated by those surveyed, scoring 7.4/10 and ranking second out of 9 Polish cities. Personnel from the IT industry are particularly sought after, and the diversity of companies – from banks to start-ups – means there is a demand for specialists who can program in almost any language. The city’s strong technological potential also translates into hiring AI, IoT, Machine Learning, Blockchain and Cybersecurity experts. Krakow also stands out for its highly skilled administrative, HR and linguistic competencies.
Thanks to its stable labour market, Krakow is an attractive destination for people from other countries looking for better career opportunities and development. It is one of Poland’s most prominent business and technology centres and attracts specialists worldwide, who are eagerly included in recruitment processes. A very interesting solution, often chosen by large companies, is the possibility of hiring experts on an outsourced basis. For one of our clients in Cracow, we employ more than 250 employees, and this number is constantly growing, which only shows the actual scale of needs that are in the IT market, explains Edyta Morek, Senior Consultant, Antal IT Services.
Developer activity in the office market
Over the past few years, Kraków’s stock of modern office space has been on a steady rise – at the end of 2023, it stood at more than 1.8 million sqm. The city maintains a leading position among regional towns in this area, and the average office space rating of 8.3, one of the higher ones in the report, testifies to its quality and attractiveness to investors.
In 2023, the signed contract volume amounted to more than 200,000 sqm. This was the highest result among the most significant regional markets, confirming that tenant activity in Krakow is not waning.
New agreements accounted for 45% of transactions. Renegotiations amounted to 47%, while the level of expansion was 8%, which shows that companies are continuing to grow and consider the office a key factor supporting this process. Tenants are most interested in sustainable and modern office properties with a wide range of offerings in the form of services, small retail or restaurants. Employees appreciate such aspects, which actually translate into rising office occupancy rates. This is an important signal for developers and owners of such properties – ESG and building amenities are “to be or not to be” in Poland’s rapidly evolving office market, concludes Karolina Słysz, Associate, Regional Cities, Cushman & Wakefield.
City attracts students
Krakow offers the opportunity to study at one of 23 universities with the Jagiellonian University, recognized on a European scale.
The score of 7.9, also the highest in the report, confirms the city’s attractiveness for acquiring higher education here. Students choose to get an education in the capital of Malopolska primarily because of its high standards, numerous innovation-oriented programs, and its potential for teaching foreign languages to prepare for work in an international environment. The city offers modern university campuses and has advanced laboratories and research centres. At the same time, it is a good base for investors who move into the sphere of new technologies.
Krakow’s universities follow the labour market and modern trends in business, taking into account, among other things, the needs of the shared services sector, which is developing rapidly here. Students can take advantage of many specializations offering broad career prospects such as data analysis, information technology, operations management, service outsourcing or artificial intelligence, says Edyta Markiewicz, RPO Service ManagerAntal, SSC/BPO.
About BEAS
The “Business Environment Assessment Study” survey was conducted using the CAWI method among 1,290 decision-makers of companies in Poland from July 31 to August 25, 2023. Reports developed as part of this and previous editions of the project are available on a new, interactive portal enabling comparison of key indicators for cities and downloading selected sets of data: www.investmentpotential.pl
About ANTAL
Antal is a leading company in the CEE region, providing solutions in permanent recruitment, HR consulting, and outsourcing. The basis of our success lies in the high quality of services offered and the people, whose capital is the knowledge accumulated over 26 years of the company’s operation. We create methods and tools that exceed customer expectations and market standards, while also being a leader in sustainable transformation in the industry. The scope of our support is very wide – from implementing comprehensive permanent recruitment processes, through outsourcing services, including RPO and contracting, to Employer Branding activities, HR Consulting, as well as providing comprehensive market research and analysis services. Visit our website: www.antal.pl
About CUSHMAN & WAKEFIELD
Cushman & Wakefield (NYSE: CWK) is a leading global firm providing services to owners and tenants of commercial real estate. It employs approximately 52,000 people in around 400 offices and 60 countries worldwide. In 2022, its revenues amounted to USD 10.1 billion. The company’s key services include property, facility, and project management, brokerage services, capital markets transactions, and valuations. For its culture and actions supporting diversity, equal treatment, and inclusivity, as well as ESG and other initiatives, Cushman & Wakefield receives numerous awards and recognitions in industry and business competitions. Additional information can be found on the website: www.cushmanwakefield.com
Martyna Petrus
PR Specialist, Antal
