CSEE NEWS on CZECHIA Broadcast by PropTech Bulgaria
Some of the key highlights in June – July 2022 in Czech Republic are:
Office demand in Prague is now at pre-pandemic levels. The Prague office market in Q1 2022 experienced a further increase in vacancy, across the entire city. However, gross take-up recorded a year-on-year increase of 44% and thus returned to pre-pandemic levels. The increase in prices throughout the city is still felt especially in construction projects, mainly due to rising costs for materials and construction work, reports the Czech branch of Colliers in their regular survey. Although the largest transactions of the quarter were lease renegotiations.
Prime headline rents in Prague followed the course set in the last quarter and increased by another 50 cents and range between €24.00 and €24.50. The citywide increase can still be felt, especially on projects under construction, largely thanks to the rising cost of materials and labour. Prime inner-city office locations are offered at €16.00 to €18.00 and prime outer city locations range from €13.50 to €15.00. However, we have to take into account that the price gap between the inner and outer city will blur very soon with some of the upcoming projects on the border locations like Hagibor, Radlice, and Roztyly.
Czech fit-out costs are the second-highest in CEE. In line with the growing popularity of flexible and hybrid work models, many companies are relocating, changing size and trying to re-fitting their offices. This could be one of the reasons why Prague placed second in the CEE region in terms of the price of fitting out an office. Nevertheless, the key reasons are the tightening supply chain and challenges around labour, which are set to continue well in 2022 and beyond. The average costs per sqm in Prague are currently €1,037, which is half of what it is in top German cities or in the UK where the median cost exceeded €2,000, Cushman & Wakefield presents in their report.
The number of completed flats in the Czech Republic increased in the year 2021 by half a percent. A total of 34,581 flats were completed last year. However, the rising figures are due to extensions, while the number of flats completed in detached and apartment buildings fell. In the future, according to statisticians, it can be assumed that new construction will decline for many reasons, writes the Czech News Agency (ČTK)based on the statistics published in June by the Czech Statistical Office (CSO).
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