Take-up on Ljubljana’s office market reached only 46,000 sqm in 2020, one third less than the previous year. Despite strong demand from potential tenants, there is very limited supply available, according to the Ljubljana office market snapshot prepared by S-Invest.
Demand and take-up
The current average asking monthly rent in Ljubljana is €11 per sqm per month, whilst the average achieved monthly rent in 2020 was €10.2 per sqm per month, excluding VAT. The submarkets of Bežigrad, City Centre, Moste, Šiška and Vič are stable and there has been little change in the past year. The more desirable submarkets in Ljubljana are Bežigrad, the City Centre, and BTC area as part of the Moste submarket.
The effects of the pandemic
It is certain that CVODI-19 will bring changes to the office market, but to what extent is not yet clear. Working from home was not common in Slovenia pre-COVID. Most companies now understand that it is possible to function with employees working remotely. Like most European countries, anecdotal evidence suggests that many office workers would like to carry on working from home some days. It should be noted however that the cost of residential real estate in Ljubljana is high, and many people live in cramped conditions. It is likely that we will see a shift to offices being used as social hubs for interaction with colleagues, and some workers choosing to work at home for part of the time.
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