Q1/2024: CZECH ECONOMY WILL SLIGHTLY GROW IN 2024 

Following a notable decline in the third quarter of 2023, the Czech economy experienced a recovery in the last quarter of 2023. Moody’s Analytics anticipates that the economy will sustain this trend, with stronger growth momentum in the latter half of 2024.

OFFICE:
The beginning of the year was marked by a slow pace on the Prague office rental market. However, despite the low demand, the vacancy rate did not increase significantly.
– Total modern office stock in Prague reached 3.91 million sq m in Q1 2024.
– One office building was completed in Q1 2024, Roztyly Plaza (21,700 sq m) in Prague 4.
– Over 71,300 sq m of office space is currently under construction in Prague, marking the lowest volume in modern market history.
– Gross take-up reached 108,700 sq m, down 19% y-o-y, with renegotiations accounting for 57%.
– The vacancy rate increased by 30 basis points quarter-on-quarter to 7.5% and, considering the ‘grey area’ available for subleasing, reached 8.9% overall.

Source: https://www.cushmanwakefield.com/en/czech-republic/insights/czech-republic-marketbeat