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Prague office market - overview

What changes has the past period brought to the market? How has been the stock and supply, gross take - up, and projects under construction developed?

Here is a brief overview of the office market figures for the first quarter of 2018.

Around 38,200 qm of new office space was brought onto the Prague‘s commercial property market for the past period.Compared to the first quarter of 2017, 2018 Q1outcome suggests better start of the year in terms of new supply.

Among the newly completed projects of the first quarter can be included Visionary located in Prague 7 or City West A1, which is located in Prague 5.

In 2018 Q1 a number of new office schemes initiated construction. Among the newly started projects were Rustonka R4 in P8  or Kvetinovy dum – VN 47 in P1.

Prague’s office gross take-up was less resilient in the first quarter of 2018 contracting by 52 % q-o-q. When compared to the 2017 Q1 gross take-up declined by 4 %. Total gross demand in Prague totaled approximately 81,000 m² in 2018 Q1

Prime rental levels stood between 20.00 - 21.00 € /m²/ month in the Central Business District (CBD) at the end of March. Apart from the capital’s CBD we lately witnessed upward trend for prime rents also in other districts of Prague.

Prague‘s office vacancy remained low      in the first quarter of 2018. Vacancy rate experienced a drop of 110 basis points standing at only 6.4 % in 2018 Q1.

More detailed data in our office report in Market Research section.