According to the latest report by Colliers International, during the first half of 2016, some 12,000 square metres of modern office space were completed in Prague. An additional 20,300 square metres is expected to follow during the second half, which will lead to 2016 being the “leanest” year in terms of development completions since 1992, with a total of only 32,300 square metres of completed offices.
In 2017, Colliers International forecasts the completion of at least 15 new and refurbishment projects in Prague totalling some 175,000 square metres, which represents a minor increase in comparison with the ten-year average for completions between 2006-2016, which stands at approximately 151,500 square metres of office space per year. A similar level of completions can be expected for 2018 and onward.
“In the last seven years, the market has managed to absorb, on average, 18,000 square metres of office space, which includes both the refurbishment of existing space and that which was newly built” said Ondrej Vlk, Head of Research at Colliers International. “Over the past three years, the demand has rebounded, resulting in an increase in quarterly net absorption to 20,000 square metres and since mid-2015 the absorption has even reached 54,500 square metres per quarter.”
Relatively high competition on the office market has led developers to focus on projects that mimic the latest trends across the most developed markets, in terms of design, ecological benefits and social aspects.
