In the second quarter, four office buildings were completed in Prague

AI - DESIGN: Rohan City A1

Prague – In the second quarter of this year, four office buildings with a total area of 44,000 m² were completed in Prague. These were the Hagibor 1 and Hagibor 2 projects in Prague 10, Rohan City A1 in Karlín, and the completion of the renovated Palace Dunaj on Národní třída. A large portion of these spaces found tenants even before completion, yet the overall vacancy rate for offices in the metropolis slightly increased to nearly eight percent. Demand and rental prices rose. This is evident from an analysis by a consulting firm that ČTK has access to.

"Regarding completed and started constructions, the Prague office market recorded a fairly active quarter. The modern office market expanded by a total of four buildings, and several others finally began construction. Although the situation in the area of new office construction is far from ideal, one can certainly speak of a positive signal," said Josef Stanko, the director of the market research department. Compared to the first quarter, the analysis indicates that the number of office spaces under construction in Prague increased by 133 percent to 166,300 m².

The volume of the Prague office market at the end of the second quarter increased to 3.95 million m², thanks to the completion of four projects. Hagibor 1 has 13,100 m² and is fully leased by Czech News Center. Hagibor 2 has approximately 15,800 m², and the Rohan City A1 project in Prague 8, designed by architect Eva Jiřičná, has 8,600 m². The renovation of the Palace Dunaj was carried out by Zeitgeist, and the newly adjusted spaces total 6,400 m².

The vacancy rate of Prague offices increased by 0.4 percentage points quarter-on-quarter and currently stands at 7.9 percent. The total volume of vacant spaces in Prague is approximately 311,200 m². The most vacant spaces, roughly one-seventh, are in Holešovice, where the vacancy rate is 16.7 percent. Following Holešovice, the next highest number of vacant offices is in the city center, with a vacancy rate of nearly six percent. Other locations such as Karlín, Nové Butovice, Chodov, or Smíchov offer available space between 10,000 and 15,000 m². The lowest vacancy rate is in Brumlovka, with 8,200 m² of available office space.

Gross demand, meaning interest in offices including the renewal of existing contracts, in the second quarter was 220,600 m² according to the analysis. Net demand, which indicates new interest in spaces, was 130,700 m², representing an increase of 184 percent compared to the first quarter. Year-on-year, this was an increase of three-quarters.

The highest rents for Prague offices slightly increased, reaching approximately 29 euros (725 CZK) per square meter per month in the best locations in the city center. Rents in the broader city center, such as Karlín, Brumlovka, and Smíchov, remained at 19 euros (475 CZK). In the outskirts of the city, like Nové Butovice, Chodov, or Stodůlky, rents slightly increased to approximately 16.50 euros (413 CZK).