In Prague, after years of preparations, whole new city districts are starting to emerge, famous squares are getting a new look, important railway stations are increasing their capacity, and a new bridge will soon span the Vltava River. If the political will is found, residents and visitors of the capital will be able to look forward to a brand new philharmonic or museum. See how Prague will change in the coming years.
The Victoria Palace was inaugurated on Vítězné náměstí in Prague. It has 92 luxury apartments and commercial spaces in the lower part. It is the first new building on the square in 87 years. The construction of the house with a distinctive facade cost approximately 850 million crowns. The architectural design of the building was developed by Jakub Cigler's studio. It had been planned for more than 15 years to build an opening on the northern corner of the square. The construction project on this land was bought by the Kaprain group in 2016, which in the same year also invited a partner, Pentu Real Estate.
When you think of the development of Karlín, you probably think of the period at the turn of the millennium, when investors led by Serge Borenstein started to transform the gray inner periphery of the city into a new lively district. The development was also accelerated by the floods in 2002, which, although they were a disaster for many, meant new construction possibilities for Karlín.
V polovině června začala výstavba další části obrovského projektu Smíchov City, který staví developerská společnost Sekyra Group. Druhá fáze, nazvaná Smíchov City Jih, bude v mnoha ohledech výjimečná. Třeba výší investice, rozsahem výstavby, ale i tím, že v ní vznikne nové sídlo České spořitelny.
Almost a third of the office market in Prague is twenty or more years old. This presents a problem for many tenants, not least because they cannot emphasize sustainability in these buildings and thus meet their ESG goals. Building owners are offered a solution in the form of complex renovations, but according to experts from Colliers, this is hindered by the low vacancy rate on the Prague office market, which offers few alternative spaces. Nevertheless, it turns out that the reconstruction of old buildings can be less demanding than the construction of new ones. A well-planned and well-executed strategic renovation can bring long-term benefits to landlords, including higher rents.
The rebranding and reconstruction of the building on Karlov náměstí concerns retail and office spaces and architectural modifications with the installation of a new logo and brand identity.
The market for modern office space in Prague at the end of the 1st quarter of 2024 amounted to approximately 3.91 million m2. The vacancy rate increased slightly to 7.5%, representing approximately 292,000 m2 of vacant office space available for immediate lease. After a long period of inactivity, new speculative construction is now slowly starting to thaw. And despite the long-term growth of rents, Prague remains an attractive and competitive location attracting new investors. This is according to the regular quarterly survey of the office real estate market published by Colliers, a leading provider of diversified professional services in the field of commercial real estate and investment management.
Prague Research Forum announces data on the office market in Prague for Q1 2024:
Almost 71,300 m2 of office space is under construction, of which 82% will be completed this year.
In the first quarter of 2024, one office building was completed – Roztyly Plaza (21,700 m2). Thus, 80,300 m2 should be completed for the entire year 2024, significantly less than the long-term average.
Gross realized demand reached a total of 108,700 m2 in the first quarter of 2024, a year-on-year decrease of 19%.
Net demand was 46,000 m2 in the same period, 38% less than in the same period last year.
Net absorption was positive in the first quarter and reached 8,900 m2.
The vacancy rate increased 30 basis points from the previous quarter
to 7.5%.
The highest achievable rent increased slightly to EUR 27.50-28.00 per square meter per month.
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