OFFICE MARKET HIGHLIGHTS

• At the end of 2024, the Prague office market totalled 3.96 million sq m of modern office space. With 72,800 sq m of new office supply, 2024 saw the lowest level of annual completions since 2019, reflecting a 26% decline in development activity compared to the previous year.
• By the end of the year, 290,700 sq m of office space was available for immediate lease in Prague. The city's office vacancy rate decreased over the past three months to 7.3%, although it remained 24 bps higher than a year ago.
• Gross take-up for 2024 reached a record 636,700 sq m, marking a 21% y-o-y increase and 43% growth compared to the five-year average. Renegotiations accounted for 49% of total demand in 2024, the second-highest share in the past decade, following a peak of 53% in 2023.
• Net demand reached 313,800 sq m in 2024, reflecting a 32% y-o-y growth. The completion of the ČS transaction* in Q2 helped push net occupier activity to its highest level since 2018, surpassing the fiveyear annual average by 34%. In 2024, net demand was primarily driven by companies in the Financial sector (37%), followed by Public/NGO organizations (11%) and Technology/IT occupiers (10%). The highest demand for new office space was concentrated in Prague 5, Prague 1 and Prague 8.

*) Construction of the new headquarters of Česká spořitelna in Smíchov, which will be used and owned by Česká spořitelna after completion.

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