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Market in Minutes | Prague Office Market Q1 2023

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OFFICE MARKET HIGHLIGHTS

  • At the end of Q1 2023, total modern office inventory in Prague exceeded 3.85 million sq m spread across 461 office buildings. Class A office make 74% of the total stock.
  • New space deliveries reached 38,000 sq m in Q1 2023, being the highest quarterly new supply since Q2 2021. A further 90,000 sq m is expected to be delivered by year end.
  • From the last quarter of 2022, office vacancy rate in Prague decreased again (for the fourth quarter in a row) to 7.5%.
  • Total occupier activity in Q1 2023 reached 137,800 sq m (3% up y-o-y). Lease renewals accounted for 45% of the quarter's gross take-up. Based on deal count, the data has not revealed any significant drop in the number of expansions, renewals or new leases. Class A space accounted for 82% of all leasing activity during the quarter.
  • Net take-up recorded in the first three months of 2023 totalled 74,900 sq m, surpassing the previous quarter, representing a 2% increase y-o-y and a 19% increase compared to the five-year firstquarter average.
  • Prime headline rents grew 10% from their Q1 2022 level to €26.50- €27.00 per sq m a month.

 

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