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Market in Minutes | Prague Office Market Q4 2022

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OFFICE MARKET HIGHLIGHTS: 2022 

  • Total modern office inventory in Prague rose to 3.8 million sq m. Over the year, seven office buildings totalling 75,400 sq m were completed. Although representing a 35% increase y-o-y, it was still well below the previous 5-year average.
  • We ended 2022 with a slightly reduced vacancy rate of 7.7% for Prague (293,600 sq m of immediately vacant premises); being 32 bps above Q4 2021 but still the lowest since Q1 2021.
  • Throughout 2022, office tenants in Prague concluded transactions totalling 550,100 sq m, a 52% increase over the previous two years' average. For the first time since the pandemic, the 500,000 sq m mark has been surpassed.
  • Net take-up exceeded 297,000 sq m in 2022, growing by 42% y-o-y and posting the highest result since 2018. However, still falling short of the strongest years 2017-2018.
  • The Technology/IT sector dominated new demand for offices in Prague, accounting for 26% of the 2022 net take-up.
  • Prime rents have stabilized at the end of 2022 and remained at around €26.50 per sq m a month.
  • Net absorption of 2022 showed positive numbers again, reaching 73,200 sq m.

 

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