OFFICE MARKET HIGHLIGHTS: 2021

• Total modern office inventory in Prague remained at 3.74 million sq m at the close of 2021.
• Prague office market saw a completion of only eight office buildings in 2021, the annual new supply came to 56,400 sq m being the lowest since 2016 and at 40% of the 5-year annual average (140,900 sq m)*.
• Office vacancy rate at the end of 2021 stood at 7.8%, 82 basis points (bps) above Q4 2020, which translated into 292,700 sq m of immediately available office space.
• Total 2021 leasing activity of 389,200 sq m topped 2020 figures by more than 56,000 sq m, being 17% up y-o-y and only 12% below the pre-pandemic 2019. Net take-up has rebounded from 2020 levels, increasing by 27% y-o-y to 212,800 sq m. However, still not reaching the 2019 prepandemic figures (by 58,800 sq m).
• Although the net absorption of 2021 showed positive numbers of 25,200 sq m, it stood well below 90,500 sq m recorded in 2020.
• Rising rent levels could be seen on the Prague office market towards the end of 2021 and, as expected, service charges went up reflecting the increase in energy prices.

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*) 5-year average means years 2017-2021 

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