According to Savills European Office Occupancy Rates Report, the physical office occupancy rate in Prague reached 61% in October this year — surpassing the 60% threshold for the first time since the pandemic, and representing an impressive 23% increase over the rate in 2022.
Despite this rise, Savills reports, Prague ranks third in Europe, following Madrid (66%) and London’s West End (63%). In addition, Savills states, “Wednesday is the busiest day for Prague offices, with physical occupancy reaching 66%. While less than half of employees in European cities go to the office on Fridays, Prague shows an upward trend with 53% occupancy on that day.”
“Before the pandemic, physical occupancy was around 70% and now we expect it to stabilize at around 60%,” said Pavel Novak, Head of Office Agency at Savills, adding that “survey results indicate that both companies and employees are finding a balance at this level between working in the office and from home.” In addition, he says, “the return of employees to offices is also supported by a gradual improvement of the work environment across the market, with a large number of companies opting for positive motivation and making substantial investments in their office spaces. However, we are also observing that more and more companies are adopting stricter hybrid work policies.
“Except for Fridays, when offices remain less occupied, the physical occupancy in Prague exceeded the 60% threshold on all other working days,” said Lenka Pechova, Senior Research Analyst at Savills. “This may be due to the need for personal interaction among employees, as well as better facilities and a quieter work environment. Companies are supporting this trend by seeking the best possible solutions to ensure that employees feel comfortable in the office and have optimal conditions for their work. We see that Friday remains flexible for work, although fewer employees are working from home on Fridays compared to a year ago.”
Finally, Savills reports, “Madrid’s office occupancy rates continue to outperform other European cities, supported by a higher proportion of residents living in the city center, shorter commute times and a positive office atmosphere. London-based companies are focusing on having their employees in the office four days a week. Tech companies are more lenient in this regard, although they are also starting to require more frequent in-office attendance from their employees.”
Image source: cityhub.com.sg