Bratislava's office market closed Q4 2024 with a significant revival in leasing activity, achieving the strongest quarterly result in the past five years. Development activity remains subdued with only one new project completed in Q4, limiting the availability of quality spaces. The combination of high demand for modern offices and limited supply has resulted in prime rent growth, which increased by 8% year-on-year, finds a report by CBRE.
Leasing activity reached 146,622 sqm in the fourth quarter of 2024, representing the strongest quarterly result in the past five years and a year-on-year increase of 131%. "This development was influenced by the renewal of a public sector lease on 21,500 sqm in the central business district. In Q4 2024, net leasing activity on Bratislava's office market totalled 44,421 sqm of office space, representing a year-on-year increase of 47%," said Oliver Galata, Head of Office Leasing at CBRE Slovakia.
Renewals of existing leases dominated, accounting for 70% of all transactions, followed by new leases (16%), subleases (12%) and expansions (3%). The largest leasing volume was recorded in the central business district with a total volume of 82,000 sqm. By sector, finance led (22%), followed by the public sector (19%) and professional services (15%). Tenant demand continued to focus on quality, with approximately 72% of all leased space going to A+ and A category buildings.
Development activity remained subdued during Q4, with only one office project completed - Zváračák with approximately 4,000 sqm. Despite the lowest level of new construction in the past two years, the medium-term outlook indicates gradual recovery. Projects Dunaj (6,400 sqm) and Ganz House (9,400 sqm) are expected to be added in 2026.
Prime rent in Bratislava increased to €21.00/sqm/month, representing a quarterly increase of 2.5% and a year-on-year increase of 8%. "High tenant demand, limited construction and a significant shift towards sustainable and modern workspaces support continued price growth in Bratislava's office market," added Galata. The overall office vacancy rate fell to 14.09%, representing a quarterly decrease of 0.38 percentage points.
