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Prague offices will soon be in short supply, the price of their equipment is driven up by ESG and modern standards

High demand and a lack of new projects caused a decrease in the vacancy rate of Prague offices, which currently stands at 7.26%. The volume of new construction and renovations was approximately 143,600 square meters at the end of Q2 2023, and the total market size was 3.85 million square meters. Reference rent prices have not changed in any way compared to the previous quarter, however, in connection with ESG and modern standards, the price of office equipment is increasing. It can easily exceed 1,000 euros per square meter. That's according to a survey by Colliers, a leading provider of diversified professional services in commercial real estate and investment management.

Searching for a "new" office

The operation of contemporary offices shows that the intersection between work and personal life is increasing. The personal life of employees has an ever-increasing influence on companies' decisions about choosing a suitable office. On the other hand, employees are considering working corners at home for a comfortable home office or close commuting distance to work.

Prague: demand for coworking is growing

Working in coworking offices, i.e. in shared spaces, is gaining more and more popularity. Not only is the interest of companies in the volume of rentals of such capacities growing, but also the total share of coworking spaces on the Prague office market.

Is there a shortage of offices in Prague?

The construction of no office building has been started in the Czech capital for a whole year, and none was completed during the past quarter. Of course, these are not the only current parameters of the Prague office market, but according to the regular report of the Prague Research Forum, they say a lot about its state.

Polish reality scores again. Czech fund Investika bought in Gdynia for one billion

The Czech real estate fund Investika became the new owner of the Tensor administrative complex in Gdynia. He is investing in Poland for the fifth time, this time one billion crowns. The popularity of the neighboring country is also growing among other Czech investors thanks to the greater number of opportunities, higher yields and still relatively affordable prices.

How to build offices, apartments and tower blocks from wood? A Czech-Austrian legislative loophole is emerging

Europe's fight against carbon dioxide is pushing developers to reduce their carbon footprint. Building so-called sustainably will be crucial for the financing of new projects in the coming years. Domestic developers already want to use industrially processed wood to a greater extent for the construction of offices and apartment buildings. But legislation prevents them from doing so. Studio Qarta Architecture of architects Jiří Řezák and David Wittassek now offers a possible solution to break the ice in this regard in the Czech Republic.

Interest in spaces in mixed-use complexes is growing, but their construction is lagging behind in the Czech Republic

In the Czech Republic, there is a growing interest in so-called mixed-use projects that connect offices, shops, housing and various forms of social enjoyment. Unfortunately, their construction still lags behind the surrounding countries. The reason is primarily the very long building permit process. While in Poland, for example, a permit for a new building takes only a few months, here it usually takes years.

Home office is offered by 39% of companies. At the same time, 3 out of 5 young Czechs stand for the possibility to work alternately from home

The demand for a combination of working from home and from the office remains high even with the end of the post-covid period. It attracts young people the most, 3 out of 5 employees under the age of 35 would like to use it. Older generations, on the other hand, are more reserved on the issue. Less than half (41%) prefer to work purely in the office, only 15% of them use work from home in practice. A total of 39% of companies offer an alternating work model. This follows from a survey mapping the attitudes of employees and employers for Scott.Weber Workspace.1
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