In Prague, the number of offices rented last year increased by half compared to the previous year

Prague - Last year, 285,310 square meters of office space was rented in Prague, which is an increase of more than 51.5 percent compared to 2005. "In 2006, we recorded an extraordinary number of signed lease agreements for office space. One of the reasons was the arrival of new foreign companies in the Czech market," said Philip Wood, head of DTZ's Prague office, which operates in real estate consulting, in a press release.
    The supply of office space last year reached 157,677 square meters, which is slightly higher than a year earlier, when the supply was 144,000 square meters. However, according to DTZ, the supply of office space in Prague is expected to decrease in the first half of 2007. "On the contrary, we expect increasing demand in the regions of Brno, Plzeň, and Ostrava," Wood added.
    Rent for the highest quality office spaces in the city center ranges from 17 to 19 euros per square meter per month (480 to 537 CZK). The highest rent outside the city center ranges from 15 to 17 euros per square meter per month (424 to 480 CZK), according to DTZ. Over the next two years, the company predicts that rental prices will not rise significantly.
    The total volume of office space in the Prague market is 1,977,937 square meters. Of this, 66 percent consists of newly built buildings and 34 percent are renovated buildings.
    The volume of new office space in the fourth quarter of 2006 was 77,943 m². Among the most significant buildings completed in the fourth quarter are Smíchov Gate (13,041 m²), Palác Křižík (13,998 m²), and BB Centrum Gamma (26,650 m²).
    The number of signed contracts reached 71,385 m² in the fourth quarter of last year. The largest volume of rented space in the fourth quarter was recorded in Prague 4 (14,429 m²) and Prague 8 (13,547 m²). The most significant new lease agreements were with Jobpilot CZ - Luxembourg Plaza in Prague 3 (3,400 m²) and Český Rozhlas - Allianz Building in Prague 2 (2,772 m²).
    The vacancy rate for office space in the fourth quarter of 2006 fell to 7.72 percent. According to DTZ, this indicator has been declining over the last three years.
    The supply of new office space in 2007 is expected by DTZ to reach 226,000 square meters, and in 2008, 389,000 square meters. Most of the office space completed in 2007 is already leased. This year, DTZ also expects that the demand for office space will be at 200,000 m².