PRAGUE OFFICE MARKET HIGHLIGHTS: Q2 2022 

• The total size of modern office stock in Prague at the end of Q2 2022 remained at 3.75 million sq m. In the first half of the year, there were three new projects (47,900 sq m) completed and added to the office inventory, new deliveries were therefore 10% down compared to H1 2021.
• The total rentable area under construction at the end of June exceeded 216,000 sq m, showing a rise of 47% y-o-y. More than 28,800 sq m of this space is expected to be delivered to the Prague market by year end.
• Office vacancy rate in Prague remained at 8.4% (313,400 sq m of unoccupied offices). This was 55 bps up from the middle of 2021. Since the pandemic hit in 2020, Prague office market has seen a rise in vacancy rate in 6 out of the last 10 quarters.
• Year to date, the total leasing activity reached 256,600 sq m, sitting 28% above the gross take-up recorded in the first half of 2019 and simultaneously a 41% growth y-o-y. Net demand recorded in H1 2022 totalled 152,000 sq m, indicating a 64% increase when compared to H1 2021. Some 79% of these new commitments were signed in Grade A buildings.
• Rent levels kept climbing and by the middle of the year were between €25.00 and €25.50 per sq m a month.

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