Prague: Demand is great, but there are no new buildings


FM newsroom – office, Prague. There is a great demand for high-quality office space in Prague, thanks to which the owners of A-class buildings can boast almost full occupancy. However, experts agree that almost zero construction can cause problems.

There is interest in shiny, modern and green offices in Prague. But while the owners of so-called A-class buildings can be proud of full occupancy the almost zero construction is a far-reaching problem, experts agree as reports.

„We need offices”

“In order to attract foreign companies to the Czech Republic, we need offices,” – said Zdeněk Soudný, vice president of the Association of Entrepreneurs in the Construction Industry, about the importance of modern office buildings.

The two main reasons why there are no new builds are the downturn the economy and the construction industry are currently experiencing, and the higher interest rates. However, developers are also waiting for new rules for the construction of buildings that are created on the soil of the European Union. “They will result, for example, in new requirements for energy efficiency. It should be clearer from the EU in the spring,” – Soudný pointed out.

Hopes for Spring

Pavel Šemík, Treasury Director at the UDI Group, also hopes that the situation will improve in the spring. Šemík said that while there is interest in modern office buildings, potential tenants are more carefully considering what they are committing to. “The decision-making processes are longer. And that has an effect on the planning and implementation of construction by developers,” – he pointed out.

Differences will increase

According to Radek Kučera, the founder of Grafton Property Partners, the differences in the occupancy of new modern buildings and older ones will increase in the future. And location will also be a decisive factor for tenants.

“What’s new, shiny, green, popular and has a good architect behind it, that’s what queues stand for. B-type offices that need renovation or greening can easily be half-empty,” – said Kučera. For example, in Holešovice or Smíchov, they see a lot of office space for which it will be difficult to find a use without major investments in renovation.



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