OFFICE MARKET HIGHLIGHTS

• After six quarters with no projects breaking ground, construction works commenced on the Pernerka building in Prague 8 in Q1 2024. However, the volume of space under construction decreased due to the completion of one office building in Prague 4. Over the past year, the volume of space under development halved to 71,300 sq m in Q1.
• The total modern office stock in Prague increased by 21,700 sq m to 3.91 million sq m. The vacancy rate rose by 30 bps from the previous quarter but has remained below 8% since Q3 2022.
• Following higher leasing activity at the end of 2023, gross take-up fell by 35% to 108,200 sq m in Q1 2024, nearly a fifth lower y-o-y. Net takeup decreased to 46,000 sq m in Q1 2024, a quarter below the quarterly average over the past three years.
• Headline rents for prime office space in Prague city centre rose for the third consecutive quarter, reaching between €27.50 and €28.00 per sq m per month in March. Rental rates grew by 4% over the past year, but looking back two years, the increase climbed to 15%.

Read the full report to find out more