2023-10-31-莱坊-European_Office_Dashboard_-_Prague_Q3_2023_2页_515kb

Summary of Occupier Market Report: Prague Office Market Q3 2023

This report provides an update on occupier activities in the Prague office market for Q3 2023, based on Knight Frank Research data. The market saw a decline in total leasing activity of 36% quarter-on-quarter and 34% year-on-year, reaching 88,200 square meters. Technology companies accounted for the highest share (14%) in leasing, followed by pharmaceutical (11%) and construction sectors. Renewals of existing leases represented 50% of total leasing activity this quarter, driven by increased relocation costs and workplace strategy changes. The overall vacancy rate rose to 7.4%, contributing to a shadow vacancy from subleases.

Future outlook indicates stable vacancy rates due to low new supply, with prime rent expected to grow in city centre and inner-city locations where demand outpaces limited supply. Rents may decrease in outer-city areas with higher vacancy. Economic indicators show stable job vacancies, a low unemployment rate (3.6%) in the Czech Republic compared to the EU average, and slightly improved service sector confidence.

Key figures include: average prime rent of €400 per sqm with a 20% year-on-year increase, and forecasted minimal new supply in 2024. Overall, occupier demand and rental dynamics highlight challenges and opportunities in the market.