Market in Minutes | Czech Republic Industrial Market Q2 2022

At the halfway mark of the year, the industrial market in the Czech Republic remains a hotbed of activity, with take-up levels hitting new 6-month records and construction pipeline expanding.
New building completions in H1 2022 totalled 406,900 sq m (110% up y-o-y), bringing the available lettable industrial stock to 10.15 million sq m.
Under-construction pipeline ballooned from 1.12 million sq m at the beginning of the year to 1.22 million sq m in June 2022 (representing 12% of the existing stock), of which 73% was already pre-leased.
Regardless of shifting economic trends and uncertainty, industrial premises continue to attract unrelenting occupier attention. In H1 2022, gross take-up climbed to
1,431,800 sq m (16% up y-o-y), reaching the highest 6-month volume ever recorded. Similarly, net demand for the same period totalled 920,800 sq m (54% up y-o-y), also hitting
a record high.
The persistent imbalance between demand and new deliveries has pushed countrywide vacancy down to 1.4% and in Prague to 0.9%.
Rents did not continue the upward trend seen in Q1 2022 and are expected to stabilize around their current levels.