Vacancy rates in Prague’s office market have fallen more than 3 percent in the past year, according to Cushman & Wakefield, but this trend will likely go on hold for a time. The reason, says the agency, is the boom in office completions, as seven projects are expected to come on line by the January. Last year, 136,000 sqm of new space was brought to market, a figure that’s set to rise to 165,00 sqm in 2018. āConsidering the continued strong take-up, we do not expect the vacancy rate to grow significantly in 2018 despite the attractive additions of new buildings,ā says Radka Novak, Head of the Office Agency Team at Cushman & Wakefield.
“The biggest current fear for companies and developers alike is the low unemployment rate. The fight for employees increases the costs in all sectors, which must be logically reflected in increasing prices including rents. As a result, we can expect the growth to slow down over the coming quarters,” says Novak. Prime rents for office space stand at ā¬21 sqm/month at the moment, but C&W predicts this could rise over the course of 2018.
