Prague's office market has witnessed several records this year: the lowest annual office supply in history and one of the highest demand volumes. By the end of 2016, Prague´s office market will have 3,245,000 sqm of modern offices. At the same time, the Czech capital recorded the lowest annual office supply in history with only 33,600 sqm in 6 projects, On the contrary, over 180,000 sqm of new office space will be delivered to the Prague market next year.
High demand and limited new office supply during 2016 have resulted in a decline of the vacancy rate by 2.9 percentage points (the vacancy rate at the end of 2015 was 14.5% and in Q3 2016 was 11.7%). Therefore, JLL has recorded a modest increase in prime office rents: Prague city centre (€19.0 – 20.0/sqm/month), inner city (€14.5-16.0/sqm/month) and outer city (€13.0 -14.5 /sqm/month).
„There are a number of new projects coming to the Prague market next year, which will temporarily increase the vacancy rate in the quarterly statistics. Given the booming economy, we expect new office space to be absorbed by the ongoing strong demand within 12 – 18 months of the completion of the scheme. The increased rental levels of the top office schemes, in the prestigious locations of Prague 4, Prague 5 and Prague 1 will persevere." concludes Eduard Forejt.
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