The new supply reached 38,000 sq m in Q1 2023, finally surpassing the 5-year average, with more to come in the upcoming quarters.
- With 38,000 sq m delivered in Q1 2023, new supply in Prague increased by 45% compared to Q1 2022, exceeding the 5-year average.
- No new office project started in the past 9 months, but 145,000 sq m of offices are under construction, of which 90,000 sq m are planned for delivery by the end of 2023.
- Gross take-up was 137,800 sq m, while net quarterly absorption was the highest since Q2 2020.
- The primary vacancy rate was 7.5%, softening by 20 bp over the quarter.
- Total occupancy costs have risen significantly over the past 12 months but are not expected to experience significant further increases in the short term.