PRAGUE OFFICE MARKET HIGHLIGHTS: Q1 - Q3 2022
- Total modern office stock in Prague slightly increased in Q3 2022 but still did not exceed 3.8 million sq m.
- New supply in the first nine months of 2022 totalled 66,000 sq m and another 11,500 sq m shall be delivered by year end. This year's annual new supply is expected to be 39% below the 10-year average (2012-2021), but should pick up again in 2023.
- From the previous quarter, vacancy rate in Prague decreased to 8.1% (20 bps down q-o-q). While perhaps not statistically interesting, this was the first decline seen this year.
- Year to date (YTD), total leasing activity reached 395,300 sq m (41% up y-o-y). Q3 was the most active of the year.
- Net demand recorded so far this year totalled 233,400 sq m (56% increase y-o-y). The transaction count was up by almost one third compared to the first three quarters of 2021 and 21% higher than in the same period of 2019. IT sector continues to be the most active, accounting for 28% of YTD net take-up.
- Prime office rent has risen again and reached €26.00-26.50 per sq m a month.
- The market posted positive absorption for the fourth consecutive quarter, with occupied office area across the city increasing by 24,100 sq m during Q3.