Czech Republic Moderate growth in Czech offices

In Ostrava, construction of modern office buildings has stagnated in recent years (with only a few exceptions) and the average annual completed area over the last five years is 5,800 sqm. Despite the lower supply, both Ostrava and Brno represent an attractive alternative for investors, with rental prices stable and lagging behind the Prague market. At the end of 2024, rents for premium office space in Brno were EUR 17 per sqm per month, while in Ostrava they ranged between EUR 14 and 14,50.

Brno expects stronger growth

The second largest city in the Czech Republic recorded slight growth in the supply of modern office space in 2024. Thanks to a slowdown in construction activity, total market size grew by only 1 pct year-on-year to 699,300 sqm. The vacancy rate decreased by 14 basis points year-on-year to 12.7 pct, representing approx. 88,500 sqm of immediately available space. Of the total available space, 51 pct is located in Brno Střed, which accounts for 53 pct of the local office market, and 19 pct in Královo Pole. In absolute terms, the market for modern office space in Brno grew by 8,600 sqm during 2024, thanks to a single project: Building I in the CTP Vlněna complex south of the city centre.

At the end of the year, 78,000 sqm in modern office space was under construction in eight projects. Titanium X (also known as Skylight X) is scheduled for completion in 2025, offering approx. 10,900 sqm and located just a few minutes south of the city centre. The Cerit Science Park III project will also be completed. It will expand the office area around Centrum Šumavská in the Královo Pole district by a further 10,800 sqm. Two buildings, D4 and D2/D3 called Montowna, will be built in Nová Zbrojovka with a total area of 24,500 sqm. Another important project is the A4 building, which will expand the Ponávka site by 16,800 sqm.

Ostrava attracts with affordable prices

Even Ostrava, the third largest office market in the Czech Republic, did not a significant increase in new office space in 2024. Nevertheless, it is becoming an attractive alternative for investors looking for quality, but more affordable, space outside the capital. The average area completed per year over the last five years is 5,800 sqm, but only five projects have been completed during this period.

At the end of H2 of 2024, the Ostrava office market reached 250,300 sqm. A positive sign and proof of the interest in space in Ostrava is the decrease in the vacancy rate to 11.6 pct. In absolute terms, 29,000 sqm of vacant space was available in Ostrava at the end of 2024. A significant 83 pct of the vacant space is located in the prime office locations of Moravská Ostrava and Přívoz, where 79 pct of the local office market is concentrated.

The construction of the Václav mixed-use building by the Antracit development group began at the end of January 2025 and will offer 3,000 sqm of office space by early 2027. Significant potential for further development lies in obsolete buildings and brownfield areas scattered around the city, especially in the Moravská Ostrava and Přívoz districts. A flexible office market is also developing in the city, with new operators emerging and new centres being built.

Regional cities are gaining momentum

According to Colliers, other regional office markets also have interesting potential. The volume of modern office space in regional cities ranges from 30,000 to 100,000 sqm, with Olomouc, Hradec Králové, Pardubice and Plzeň having the most extensive supply. Thanks to improving transport accessibility and developing infrastructure, these cities can be expected to attract even more investor attention in the future.

As the Czech motorway network expands and train connections improve, new job opportunities are being created in areas that were previously considered too remote. This trend is also supported by the growing popularity of hybrid work models. Growth in rent prices in the regions is weaker than in Prague or Brno, which, with current construction costs, is partly complicating commercial development.
Josef Stanko, director of Market Research at Colliers

Experts state that the city with the most interesting potential for new construction is currently Pilsen. Although the large-scale Ameside project is facing complications after the revocation of its zoning permit in early 2024, other projects are entering the implementation phase. These include Investika's multifunctional project at Anglické nábřeží and Antracit Group's Antracit Plzeň project. Both are expected to add several thousand sqm to the local offer for office space. The Redstone Real Estate Group is preparing a project called Pernerka (also known as Galerie Pardubice) in Pardubice. Construction is expected to start in H1 of 2025, with completion planned within three years. Recently, CFIG completed its Palachovka project in Pardubice; construction had begun back in 2009.