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Market in Minutes | Prague Office Market Q2 2023

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OFFICE MARKET HIGHLIGHTS

  • Total modern office inventory in Prague remained at 3.85 million sq m at the end of H1 2023, as no office building reached completion during Q2 2023. New office space supplied to the Prague market during H1 2023 remained at 38,000 sq m, which still resulted in a 33% increase compared to H2 2022 but a 22% drop year-on-year (y-o-y). The expected annual new supply for 2023 came down to 104,800 sq m.
  • At the end of June 2023, 7.3% (i.e. 279,600 sq m) of all Prague office stock was available for lease, the lowest vacancy rate since Q4 2020.
  • Net demand for offices is still above pre-Covid average. Historically, net leasing activity from 2011-2019 averaged 123,300 sq m through the first half of each year. In H1 2023, Prague has experienced 141,100 sq m of net take-up, 14% above the 2011-2019 average but 8% below this time last year. Net demand in H1 2023 was driven by occupiers from the Technology (13%), Pharmaceutical / Medical (12%) and Manufacturing (12%) sectors.
  • Gross office take-up totalled 284,700 sq m in H1 2023, being up by 12% y-o-y and almost identical to the H2 2022 levels. In the first half of 2023, the market witnessed a positive absorption of 66,800 sq m (compared to 30,400 sq m in H1 2022).

 

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