In the first quarter of 2021, the Prague office market was still affected by a global pandemic. As a result, only 3,500 sq m of office space was completed during this period. The overall supply on the market thus remained unchanged. However, a positive trend is the start of construction of several larger projects on the Prague market, namely the Masaryčka or Port 7.

The volume of projects in the current phase of construction is 199,700 sq m. Approximately 33 % of these projects will be completed in 2021.

We are still registering a large trend of subleases on the market, which reaches a volume of approximately 70–80 thousand sq m.

The total activity on the rental market, including renegotiations and subleases, reached approximately 90,000 sq m, which represents a year-on-year increase of approximately 30 %. In general, the trend brought by the pandemic, is an increase in the share of renegotiations in total activity. It reached 46 % of the total activity. Although the "gray" sublease market is growing, overall activity was only 4 %.

Despite the above factors, the highest achieved rent remained at the level of 2020. The highest achieved rent thus ranged from 22.00 to 22.50 EUR/sq m/month in the city center, 15.50 – 17.00 EUR/sq m/month in the wider center of Prague and 13.50 –15.00 EUR/sq m/ month on the outskirts of Prague. However, these stated rent levels do not consider the above-mentioned subleases, which are often offered at sub-market conditions.

Average monthly rents

€ 15.50/sq m – € 17.00/sq m

Total stock

3,690,000 sq m

Vacancy rate

7.6 % [280,600 sq m]

Currently under construction

199,700 sq m

Yield "A" class

4.6 %

Yield "B" class

5.5 %