The cost of office space renting in the Czech Republic is increasing

Office space is one of the most sought-after commercial real estate in the Czech Republic. This is due to the active development of the business and the interest of foreign investors in the acquisition of office real estate. Traditionally, the most active buyers of office space are IT and media telecommunications companies, consulting agencies, agribusiness, life and real estate insurance organizations.

Both local and foreign investors can buy an office in the Czech Republic for the purpose of subsequent resale or long-term lease on favorable terms.

Experts note that in the past few years, the Czech Republic has been characterized by an increase in the cost of renting office premises. According to forecasts, this trend will continue to develop. Let’s look at the main reasons that influenced the increase in prices for office real estate.

Why is the cost of renting office space increasing?

The increase in the value of commercial real estate is a trend that is characteristic of large European cities. But this is most noticeably manifested in the Czech Republic, since the country has been leading for several years in a row among countries with the most favorable financial conditions for business development. Analysts indicate several reasons for the increase in the cost of office facilities:

• demand exceeds supply: this situation is associated with a big leap in business development, the emergence of new companies and market segments. As a result, the number of free office space is rapidly decreasing every year. At the same time, on average 2 years are needed to build new facilities. Thus, there was a lot of competition for the purchase of office real estate, which was the main reason for the price increase.
• lack of large office space: due to the scaling up of the business, the demand for large office centers is increasing. Many of the entrepreneurs want to buy an office building office in the Czech Republic, with a square from 2500 to 5500 sq.m. A shortage of facilities of this size creates an increase in the price of existing office space.
• the capital is the epicenter of business: If you decide to buy an office in the Czech Republic, you should know that in the most developed cities, such as Prague, Karlovy Vary, the cost of renting an office will be several times higher than the premises in the suburbs. The increase in prices is associated with a large flow of tourists who come to these cities and, accordingly, create additional conditions for business development.