C&W STATISTICS: PRAGUE OFFICE MARKET Q2 2023

The vacancy rate decreased to 7.3% amid no new supply in Q2, renegotiations dominated occupier demand again, while prime rent has remained the same, hovering around its peak level.

With 38,000 sq m delivered in Q1 2023, new supply in Prague increased by 45% compared to Q1 2022, surpassing the 5-year average. However, Q2 saw no new delivery in the sector, resulting in a 22% year-on-year decrease in new supply for H1 2023.
No new office project started in the past 12 months. Still, over 143,000 sq m of offices are under construction, of which 66,800 sq m are planned for delivery by the end of 2023, and 52% are already pre-leased.
Gross take-up was 149,000 sq m, with 53% of lease renegotiations.
The primary vacancy rate softened further by 30 bp over the quarter, setting at 7.3%.
In Q2 2023, prime rent remained stable at the highest level among the CEE countries.