There is a great demand for high-quality office space in Prague, thanks to which the owners of so-called A-class buildings in particular can be proud of almost full occupancy. The problem, however, is almost zero construction, experts agreed
“It would be good if the trend (of office construction shortage) is reversed because there is a shortage of office space. In order to attract foreign companies to the Czech Republic, we need offices," said Zdeněk Soudný, vice president of the Association of Entrepreneurs in the Construction Industry, about the importance of modern office buildings.
There are two main reasons why it is not being built now. For one thing, the economy and the construction industry are currently experiencing a downturn, also due to higher interest rates. However, developers are also waiting for new rules for the construction of buildings that are created on the soil of the European Union. "They will result, for example, in new requirements for energy efficiency. It should be clearer from the EU in the spring," Soudný pointed out.
Pavel Šemík, Group Treasury Director at the UDI Group developer group, also hopes that the situation will improve in the spring of next year. "We all hope that spring will bring more positive news, not only in the office sector but also in other real estate sectors," he said. Šemík said that while there is interest in modern office buildings, potential tenants are more carefully considering what they are committing to. "The decision-making processes are longer. And that has an effect on the planning and implementation of construction by developers," he pointed out.
According to Radek Kučera, the founder of Grafton Property Partners, the differences in the occupancy of new modern buildings and older ones will increase in the future. According to him, it will also depend a lot on the location. As an example, he gave the recently completed Masaryčka office building near Masaryk station.
"What's new, shiny, green, popular and has a good architect behind it, that's what queues stand for." "B-type offices that need renovation or greening can easily be half-empty," said Kučera. For example, in Holešovice or Smíchov, they see a lot of office space for which it will be difficult to find a use without major investments in renovation.