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By 2020, the majority of offices planned in Dejvice

CBRE, the world leader in the commercial real estate services sector, released a study of planned office constructions in Prague till the end of 2020, which confirmed the progressive evolution of development projects. The extensive construction is planned mainly in Dejvice, where 124,300 sq m of new office space will be added to Evropská Street by the end of 2020.

Demand for office space continues to grow. More and more companies are entering the Czech market and Prague is a popular location for placing offices and headquarters of foreign companies. The positive economic development has also increased demand from existing companies that already perceive an attractive and high-quality working environment as an effective tool of personnel policy, influencing satisfaction and employee productivity. Demand is high mainly for new, high-quality office space with a wide range of services.

This trend sees continued growth in development of office projects as in recent years, with a total area of about 40,000 sq m of office space being realized this year, which will be several times higher (see the chart) in the following years according to the plan.

"Overall, a further 694,100 sq m of modern office space is planned for 52 projects in Prague by 2020, of which approximately 163,800 sq m is currently under construction. Regarding building permits, there are 455,000 sq m of office space under construction or planned. The average size of projects planned in Prague is 13,300 sq m."  said Katarina Wojtusiak, Head of Office Agency CBRE.

Source: CBRE Research

Clients already are mainly interested in office destinations such as Pankrác and Budějovická, which are popular with companies operating in the financial sector. The supply of offices in this area will soon expand to include approximately another 54,200 sq m of high quality Class A office space in this area, whose construction has already begun. The destination is popular mainly due to the favourable accessibility by public transport or by car, as the journey to the city centre takes only a few minutes. Another extensive development project was launched in Karlín, which is located in the direct vicinity of the centre and offers very good civic amenities. The largest amount of planned office space to be completed by 2020 is also expected in the Dejvice-Evropská Streets and town centre. Office hubs will also further extend to Holešovice and Letňany (see the chart).

Source: CBRE Research

The emergence of new office space is anticipated for Evropská Street, with a total area of 124,300 sq m (see table.) of planned construction in Dejvice by the end of 2020, representing a change in market preferences. Although Evropská Street is a key link between the city centre and airport and therefore a key route to Prague, in terms of office space it was a very little used and developed area, which did not meet the required parameters. For a long time it lacked the right quality and range of services, which gradually have seen positive changes with the extension of metro line A. Because of the capacity, we can also expect further development in the suburbs.

"With the new construction, other popular destinations are appearing, where new office hubs such as around metro stations Jinonice and Radlická may arise." said Katarina Wojtusiak, Head of Office Agency CBRE.

Source: CBRE Research