Completed and ongoing construction

In the 3rd quarter of 2024, the total supply of office space in Prague increased slightly to over 3.95 million m². This increase was due to the completion of the reconstruction of the River Office House building in Prague 7, which added 1,400 m² to the market. At the time of completion, 80% of these spaces were already leased.

16% of the total office pool is located in the center of Prague, but the largest share is in the wider center (60%). The remaining 24% are located in the outer and peripheral parts of the city. The most developed office market remains Prague 4 (958,200 m²), Prague 5 (678,100 m²) and Prague 8 (647,000 m²).

In the 3rd quarter, the trend returned again when no new office projects were started. The total area of ​​offices under construction now amounts to 166,600 m² and most of them are located in Prague 5 (72%) and Prague 4 (12%). More than 51% of these spaces were already pre-leased during construction.

Of the total volume of office projects under construction in Q3, the vast majority (139,700 m²) are not expected to be completed until 2027. A single project of 3,500 m² is expected to be completed this year, underscoring the very limited volume of new space , which will be launched on the market in the near future.

Inquiry

In this year's 3rd quarter, the total rental activity reached 132,600 m² and grew by 55% year-on-year. Compared to the previous quarter, demand decreased by 39%, but still exceeds the five-year average of the 3rd quarter, which is 96,600 m².

Renegotiations in this quarter dominated the entire Prague office market and accounted for more than 61% of the total demand. New leases and expansions reached 36% and contracts for space under construction represented just 1%. Subleases of already occupied premises amounted to only 2%.

Overall, the most active part of the city was once again Prague 4, where signed transactions reached a total of 43,800 m² (more than 33% of the total demand for this quarter). However, the majority (68%) of transactions here were renegotiations. The second most active sub-market was Prague 8 with a 20% share of total demand, closely followed by Prague 5 (19%).

Net rental activity showed a significant quarter-on-quarter decrease of 63%. However, after deducting the record transaction of ČS*, the decline would be only 10%. In a year-on-year comparison, net demand showed an increase of 14%. Manufacturing companies, public or non-profit institutions and technology (IT) companies leased the most new offices in this quarter. Completed and ongoing construction

In the 3rd quarter of 2024, the total supply of office space in Prague increased slightly to over 3.95 million m². This increase was due to the completion of the reconstruction of the River Office House building in Prague 7, which added 1,400 m² to the market. At the time of completion, 80% of these spaces were already leased.

16% of the total office pool is located in the center of Prague, but the largest share is in the wider center (60%). The remaining 24% are located in the outer and peripheral parts of the city. The most developed office market remains Prague 4 (958,200 m²), Prague 5 (678,100 m²) and Prague 8 (647,000 m²).

In the 3rd quarter, the trend returned again when no new office projects were started. The total area of ​​offices under construction now amounts to 166,600 m² and most of them are located in Prague 5 (72%) and Prague 4 (12%). More than 51% of these spaces were already pre-leased during construction.

Of the total volume of office projects under construction in Q3, the vast majority (139,700 m²) are not expected to be completed until 2027. A single project of 3,500 m² is expected to be completed this year, underscoring the very limited volume of new space , which will be launched on the market in the near future.

Inquiry

In this year's 3rd quarter, the total rental activity reached 132,600 m² and grew by 55% year-on-year. Compared to the previous quarter, demand decreased by 39%, but still exceeds the five-year average of the 3rd quarter, which is 96,600 m².

Renegotiations in this quarter dominated the entire Prague office market and accounted for more than 61% of the total demand. New leases and expansions reached 36% and contracts for space under construction represented just 1%. Subleases of already occupied premises amounted to only 2%.

Overall, the most active part of the city was once again Prague 4, where signed transactions reached a total of 43,800 m² (more than 33% of the total demand for this quarter). However, the majority (68%) of transactions here were renegotiations. The second most active sub-market was Prague 8 with a 20% share of total demand, closely followed by Prague 5 (19%).

Net rental activity showed a significant quarter-on-quarter decrease of 63%. However, after deducting the record transaction of ČS*, the decline would be only 10%. In a year-on-year comparison, net demand showed an increase of 14%. Manufacturing companies, public or non-profit institutions and technology (IT) companies leased the most new offices in this quarter.

Source:// Savills