ARTICLES LABELLED WITH TAG Prague

The Prague office market has experienced a decline in the construction of new office buildings over the last three quarters which has also been reflected in a decline in speculative construction. Whereas a year ago almost 80% of offices under construction did not have a secure tenant, this share has now fallen to 52%. Tenants were looking for office space in established office locations in the vicinity of Karlín in Prague 8 and Pankrác in Prague 4 in the first quarter. A quarterly analysis by international consultancy JLL shows that 7.5% of modern office space in Prague is currently vacant, which corresponds to 289,100 sqm of space. However, the supply of so-called subleases, which are not included in the official vacancy register, is also growing. According to JLL's latest analysis, there could be around 80,000 sqm of sublease space.

CTP is contributing to the carbon neutrality of the warehouses of CTPark Prague North with the use of trapezoidal sheets made of XCarb ‘green’ steel, manufactured by Arcelor Mittal. It will be added to the entire roof area of a warehouse designated D8.7B with a total area of 32,000 sqm. This resulted in a saving of 835 tonnes of CO2, the equivalent of 348 people living without a car for 1 year.

Crestyl has unveiled its new residential project. The project will be built next to the vast Šárka Nature Park in Prague 6 on the site of the current Šárka Business Park industrial and logistics complex (former Aritma). The new free-access residential area with park areas will include 18 villas with a total of 224 apartments, six family houses near the border with the forest land, a kindergarten and premises for services and shops. The architectural and urban design of the buildings and public spaces emphasises the connection with the nearby forest. The project received final planning permission in February this year. Construction of the first phase, which will include 108 apartments, is scheduled to start next year. The total investment will exceed four billion crowns (€170.15 million).

The average price of older flats in the Czech Republic fell by nine percent year-on-year to CZK 82,351 per sqm (€3,510 per sqm), which brought an overall increase in sales by two-thirds compared to the previous year. However, Prague has seen the fewest sales of older apartments in four years. According to ČTK and HN.cz, this is the result of a study by the real estate group European Housing Services (EHS), which uses data from its founding members, Bezrealitky and Maxima Reality.

The frozen Czech residential real estate market experienced a minor shake-up when developer Central Group put fifty new apartments on the market in Prague's Harfa at a big discount. According to the developer, they were sold out in a few hours. The price was CZK 100,000 (€4,250) per sqm, a quarter cheaper than is usual in the locality and a third cheaper than the Prague average, writes Hn.cz.

The latest data from Q1 2023 show a recovery of the new flats market in Prague. Quarter-on-quarter, sales increased by almost a fifth. The mortgage market, which has also seen a rally in recent months, but also the return of investors, will have an impact on further developments. Neither offer nor sale prices have changed significantly compared to the previous period. This is mainly due to persistently high construction costs, slow permitting of new construction and temporary postponement of some planned projects, according to the market analysis of development companies Trigema, Skanska and Central Group.

Developer activity in the Prague office market in Q1 2023 was still below the pre-pandemic level. As a result, only about 145,000 sqm of office space is under construction and no new construction has even started in recent months, according to the latest report by the Prague Research Forum, whose members include CBRE, Colliers, Cushman & Wakefield, JLL, Knight Frank and Savills.

One of the biggest transactions of the year in the Czech real estate market is about to take place. Negotiations for the sale of the OC Letňany shopping centre are supposedly ongoing in Prague. After six years, the German owner of the shopping centre is considering selling the property, writes HN.cz, as confirmed by two sources from the Central European M&A market.

A new industrial building has been constructed in CTPark Prague West near Prague, which holds a record 92.1% ‘BREEAM New Construction’ sustainability certification score of ‘Outstanding’, making it the ‘greenest’ industrial building in the Czech Republic. The warehouse, which was built under strict environmental measures, features a range of innovative solutions contributing to energy efficiency, as well as facilities to support local animals, abundant greenery, and a charging station for electric vehicles.

UBM Development Czechia has launched the construction and sale of Timber Prague apartments. The first wooden multi-storey apartment buildings in modern history are being built in Prague. Timber Praha is being developed within the Arcus City residential complex and offers 62 apartment units in modern multi-storey wooden buildings made of solid wood panels, UBM announced.