Prague Office Market Q3 2023

Below we have prepared a current overview of the Prague office market for Q3 2023.

Summary of current data:

• Vacancy rates are forecast to remain relatively stable  due to  the combined effects of lower new supply with second-hand excess office space coming to the market upon lease expiries.

• Recent figures confirm that occupiers tend to prefer renegotiating their existing leases to relocations
  due to increased relocation costs and  changes in workplace strategy with increased use of hybrid working models.

• Looking ahead, we foresee sustained rental growth pressures primarily in the city centre and in some inner city locations where demand outpaces supply due to limited supply pipeline in the coming two years.  On the other hand, outer city locations with higher vacancy rates may face rent reduction.

I hope you find the information in this report useful.

We like questions, if you’ve got one about our research, or would like some property advice, we would love to hear from you.

Lenka Šindelářová

Head of Research and Consultancy

lenka.sindelarova@cz.knightfrank.com

+420 602 773 592