Office Supply/Stock
The global economic crisis has significantly affected the Czech property market and, for the first time, this has been reflected in the statistics when considering new office developments within Prague. In the first quarter of 2010 there was not a single modern office scheme completed. Consequently, we do not expect supply levels to be high over the course of the next two years as the office market naturally reacts to a decline in demand.
Office take-up
The gross office take-up for Q1 2010 reached 48,940m2. We consider this a fairly average result and 21% higher than the result from Q1 2009. The result also confirms our predictions that this year should remain, in terms of gross take-up, at the same level of around 250,000m2 of leased space, as it was in 2009.
Construction of new office buildings will restart immediately after an increase in preleases and we believe the next two years might bring a new wave of larger pre-leases.
In the first quarter of 2010, the Keystone project in Prague 8, built by Karlín Group also commenced construction. This project will be followed by Main Point Karlín in Prague 8, built for Vienna Insurance/Kooperativa and projects City Deco and City Element owned by ECM and both in Prague 4 are expected to commence construction.
The largest share of gross take-up was done across the IT sector (above 30%) although most of the deals were renegotiations of current leases – amongst the companies that signed leases in the first quarter were: Acision CR, Computer Association, Logica or Certicon.
Download the full PDF:English
Czech
|