MARKET IN MINUTES | CZECH REPUBLIC INDUSTRIAL MARKET Q4 2024

  • Annual deliveries in 2024 fell to 680,300 sq m, reflecting a 28% decline y-o-y. At the end of 2024, the total existing grade A stock in the Czech Republic reached 12.84 million sq m, with 28% of this space located in the Greater Prague submarket.
  • The nationwide vacancy rate closed the year at 3.6%, marking an increase of 131 bps compared to the previous year.
  • The volume of under-construction space surpassed 1.5 million sq m once again, and includes 733,300 sq m of speculative space, which also encompasses all of the shell & core units.
  • Total leasing activity in 2024 reached 1,462,900 sq m, consistent with the average annual gross take-up seen from 2014 to 2020, although this represents an 18% decline from the previous year. Lease renewals accounted for 37% of the total gross take-up in 2024.
  • A similar trend is evident in net demand, which totalled 908,500 sq m in 2024, a 12% decrease y-o-y. Nevertheless, when viewed from a long-term perspective, net demand has reverted to levels that were more typical before 2021. The regions of Greater Prague, Moravia-Silesia, and South Moravia saw the highest net take-up volumes in 2024, collectively accounting for 53% of the total annual net demand.
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