OFFICE MARKET HIGHLIGHTS

• The total stock of modern offices in Prague has expanded by 65,600 sq m during H1 2024, with a total of 80,300 sq m expected to be completed this year (38% below the 10-year average). Despite the vacancy rate rising for the third consecutive quarter, it remains below 8%.
• There are 11 office buildings under construction with a total area of 166,300 sq m (the highest volume since 2022). More than half of these premises are already pre-leased. A significant portion (72%) of the space under construction is located in the Smíchov City development area.
• Thanks to a robust Q2, and particularly the Česká spořitelna transaction, total demand for the first half of the year climbed to 327,300 sq m (+19% y-o-y and +57% compared to the 10-year average for H1). The number of transactions closed in H1 was 5% higher than last year, but remains 6% lower compared to 2022. Renegotiations continue to play a significant role in overall activity.
• Net demand in H1 2024 was also strong, totalling 176,700 sq m and reflecting an increase of nearly one-third y-o-y and a 37% rise compared to the 10-year average. However, excluding the Česká spořitelna HQ, net demand would have fallen by 24% y-o-y and by 21% compared to the 10-year average.

Read the full report to find out more