PRAGUE OFFICE MARKET Q4/2023

The Prague Office Market displayed a persistent lack of growth throughout the last quarter of the year. No new office building has entered the construction phase since spring 2022 and the pipeline for new offices is expected to remain dry until 2025.  Numerous ongoing projects possess valid building permits, however, due to the high uncertainty still persistent on the market, investors remain cautious and choose to postpone construction activity. The expected decline in interest rates of both the European Central Bank and the Czech National Bank, the stabilization of construction materials prices, and upcoming economic rebound are factors that point to the end of the office price correction and regained stability of the market. The demand side of the market is also showing positive signs, as both the q-o-q and y-o-y total gross demand experienced a significant increase. Renegotiations once again constituted the majority of lease contracts.