There are already 57 centres in Prague that offer flex space. There are 37 providers in the city and most centres can be found in Prague 1. On average, the price of a fixed workplace is CZK 4,800 per month (excluding VAT). JLL, a real estate consulting company, confirmed in its latest report that the trend of flexible spaces is increasingly influencing the Prague office market.
“At present, we see great potential for the growth of flex space in Prague. We also expect a rise in the importance of this trend in larger regional cities however, the development in Prague will fully show where this trend will continue. At this point, it is difficult to predict development over the longer term,” said Martin Stričko, Senior Analyst at JLL.
In addition to the most popular location of Prague 1, where 19 flex space centres are currently in operation, Prague 5, 7 and 8 are also very attractive. For those who use flexible offices, facilities in the surroundings are very important (fitness, restaurants, and cafes). That is why the above-mentioned districts are the most popular. The location is a key factor for the functioning of these concepts. The price for one workplace is CZK 4,800 per month without VAT in average.
Corporations make up a large part of demand
According to JLL, this trend is driven by the overall evolution of our lifestyle and way of working. This is also due to the technological development that allows us to work anytime, anywhere. However, as the European JLL survey shows, there is not just a demand from freelancers, as it might seem at first sight. In Western Europe, there is the greatest interest from large corporations, who use this way of providing workspace for their employees in case of expansion needed which their existing offices cannot cover. At the same time, corporations perceive flex centres as a stimulating environment that can bring new ideas into their working atmosphere and can also help to establish new contacts. A similar development can be expected in the Czech Republic. Already today, according to our information, such premises in Prague are used by companies as WMC, Skoda, Honeywell or Ernst & Young.
The fact that new operators, such as WeWork, HubHub, Spaces, and New Work Offices, are coming to Prague or will open soon, proves that it is not just a temporary market trend. In 2019, JLL expects 67% growth in flexible offices in Prague compared to the previous year.
“Compared to Western Europe, the development of this sector on the Czech market is still in its infancy. In 2018, the share of flexible office space in the Prague office market was approximately 1%, in Amsterdam it was almost 7%, the highest in the EU.“ said Martin Stričko.