Both gross and net take-up levels reached levels above the pre-pandemic average. As a result, the vacancy rate remained at the same level as in the previous quarter (8.4%). Construction of about 170,000 sq m will begin in the remaining half of 2022 and during 2023, representing healthy but still reserved development activity in the Prague office market, facing disrupted supply chains and high construction costs. Prime rents in new projects in the city centre have risen by 13% and are expected to increase even further. However, the rental growth in existing prime projects is much more moderate in projects outside the wider city centre.
The total stock reached 3,771,700 sq m in June 2022. The share of A-class buildings in the whole office stock remained at the standard level of 74%. The highest quality AAA-class buildings accounted for over 17%.
21 office and mixed-use buildings are currently under construction, accounting for 215,700 sq m of office space. In Q2 2022, the construction of 55,700 sq m within four office buildings started – the first phase of the reconstruction of the Pragovka E-factory, the construction of the A1 building of Rohan City and two office buildings within the Hagiborproject.
Developers struggle with disrupted supply chains and extremely high construction costs. The new supply will therefore continue to keep on the lower levels and the rental levels may still rise.
n Q2 2022, two new office buildings were delivered to the market – the small project Košířská brána in Prague 5 (2,200 sq m) and DOCK in Five(20,500 sq m), completing the Crestyl’s mixed-use project in Palmovka.
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