Real Estate Market Research

In 2019, the vacancy rate for offices was only 5.5%. The level of incentives to motivate tenants also decreased. Rents, on the other hand, rose.

In total over 149,000 m2 was completed in 2018 representing a 10% increase over the prior year. Prague office construction remained very active with over 342,000 m2 under construction in the last quarter of 2018. 

In the third quarter of 2018 around 346,000 m2 of office space were pending delivery, located primarily in Prague 8. Prague office vacancy rate dropped to 6.1 %. 

In the second quarter of 2018 the office vacancy rate rose to 6.7 %. Prague Central Business District (CBD) experienced an increase in prime rent to 20.50 – 22.00 €/m2/month.

Around 38,200 m² of new office space was brought onto the Prague‘s commercial property market in the first quarter of 2018. Prague‘s office vacancy remained low standing at only 6.4 %.

Prague saw around 135,000 m² completed in 2017. Office construction sector recovered y-o-y registering more than 304,000 m² of office space under construction. The Prague‘s average office vacancy further decreased in Q4, the figure was at its lowest rate for 10 years. 

Total amount of office space under construction in the capital in 2017 Q3 stood around 339,000 m². Prague 8, Prague 5 and Prague 4 posted the largest development activity. Office vacancy rate was down to 7.8 %.

Overall, 142,600 m² of offices space is scheduled to be delivered to the market in the second half of 2017 and more than 173,000 m² in 2018.

Only one new office building was delivered to the Prague office market in 2017 Q1. The largest office schemes under construction were built in Prague 5 and Prague 8.

One new office building, South Point comprising 7,500 m2 in Prague 4, was delivered to the market during the fourth quarter of 2016. There were two new office projects started in Q4, namely CSOB Bank II with 30,000 m2 in Prague 5 and AFI Vokovice with 12,100 m2 in Prague 6.

Some 13,300 m2 of new office space was completed in the third quarter. Prague 5 remained the location with the highest amount of space under construction.

Although the second quarter brought two new completions in the Prague office market, supply have been recently more or less at a standstill. The price of prime office space in Prague CBD remained at the same as in the previous quarter, between 18.50 – 19.50 € /m2/ month. Vacancy rate further decreased.

There was no new supply of office space delivered onto the Prague office market in the first quarter of 2016. The construction activity was slightly stronger then in the second half of 2015. The vacancy rate decreased for the fourth quarter running.

Dear Sir / Madam,

We would like to offer you our summary report on Prague commercial real estate market in 1q 2011. Individual chapters will provide brief summary on the macroeconomic situation, the office market and warehouse and logistics premises market. The last chapter deals with real estate investments in 2010.

We hope this report will provide the information you are looking for. If you have any questions, please contact us.

In Q4, only one building joined the Prague office market – the building Enterprise Office Centre situated in the Pankrac business hub comprising ca. 29,000 m2 office premises. 2015 was a very successful year for lease performance with an exceptional pick up in 2015/Q4.

Among the largest new buildings completed in this period was Waltrovka - Aviatica providing 23 000 m2 of leasable office space. In the period between 2015/Q1 - Q3 the overall new supply amounted to little under 157,000 m2. Total space under construction has been on a downward trend. Enterprise Office Center was the largest uncompleted scheme in Prague with 29,000 m2.

The supply of new offices in Prague has increased q-o-q slightly amounting to 42,300 m2. At 128,000 m2, total gross lettings in Prague increased by 94 % compared to 2015/Q1.

Over the last few years the construction activity was robust. The first quarter of 2015 brought ca. 34,200 m2 of new A class office space. The real estate market in Prague is expected to be confronted with a wave of office supply especially in 2015 when ca. 189,000 m2 of office space could be completed.