According to a market report by Cushman & Wakefield CBS International Croatia, the office market in Zagreb was very active in 2020, with a total leasing activity of 55,000 sqm, despite the slowdown in activity in the first half of 2020 due to COVID-19 and the earthquake that hit Zagreb in April.
At the end of 2020, the total supply of modern office supplies in the Croatian capital was approximately 1.5 million sqm, including Class A and Class B office space. There were no new project completions in Q4 2020, however, several office projects are expected to be completed in the first half of 2021. These include Infobip – Alpha Centauri Zagreb campus, in the area popularly called Zagreb Silicon Valley, with a total of 20,000 sqm upon completion.
Primary yields for modern office space vary between 7.50 – 7.75 percent. After a marginal increase in the vacancy rate in Q2 and Q3 2020, the vacancy rate continued to rise and at the end of Q4 2020 reached a level of 4.58 percent.
