RECORD INCREASE IN OFFICE RENTS IN THE CZECH REPUBLIC
In recent years, the office rental market in the Czech Republic has seen a significant increase in prices, reflecting the country’s economic and real estate trends. Prague continues to be the city with the highest costs, but other regions are also experiencing significant increases, with Olomouc leading in price growth. This is influenced by a number of factors, including the demand for modern space, economic recovery and business expansion.
General increase in rental prices
In the fourth quarter of 2024, the average rental price for office space in the Czech Republic reached CZK 311 per square meter, an increase of 6.5% compared to the price during the same period last year. This trend reflects a growing demand for modern and well-equipped spaces, partly due to the post-pandemic economic recovery and the expansion of both local and international companies in the country.
Regional differences in rental prices
Rental costs vary significantly by region and city. Prague, as the capital and main economic center, has obviously the highest prices. In the fourth quarter of 2024, offices in Prague were offered at an average price of CZK 390 per square meter, an increase of 6.3% over the previous year. This increase is attributable to strong demand in a city that contributes 25% of the national GDP and hosts many important companies and institutions.
Other cities show lower prices. In Brno, the country’s second largest city, average rents were CZK 279 per square meter, while in Ostrava they were CZK 206 per square meter. These differences reflect both the different demand for office space and the level of economic and infrastructural development in their respective regions.
Record growth in the Olomouc region
Particularly noteworthy is the Olomouc region, which recorded the most significant increase in office rental prices. Olomouc is a historic city and one of the main university areas in the Czech Republic, with a strong concentration of young professionals and continuous development in the field of technology and education. For this reason, many companies are attracted to that area, especially if they are looking for more modern and well-placed office space. In addition, the local government is investing in development projects and infrastructure, making the city an increasingly attractive hub for entrepreneurs and growing companies.
In fact, in the fourth quarter of 2024, the average price demanded was 234 CZK per square meter, an increase of 21.2% compared to the same period in 2023.
Office size and price variation
The size of office space also affects prices. Offices over 300 square meters saw a 9% price increase, reaching an average of 377 CZK per square meter. In contrast, smaller offices up to 50 square meters recorded a more modest increase of 1.5%, with an average price of CZK 274 per square meter. This trend suggests a growing demand for larger spaces, probably from expanding companies or new realities that need larger environments for their operations.
Provision of office space
Despite rising prices, the supply of rented office space remained relatively stable in the fourth quarter of 2024 compared to the end of 2023. This balance between supply and demand indicates that, although prices are rising, entrepreneurs still have a variety of options to meet their operational needs.
In conclusion, the rise in office rent prices in the Czech Republic reflects a combination of factors including economic recovery, growing demand for modern space and the specific dynamics of each region. Therefore, companies planning to settle or expand in the country need to carefully consider these regional variations and market trends in order to make informed decisions about which spaces are best suited to their needs.
Sources: https://www.dumazahrada.cz/
