Prague ranked as the second-fastest developing city of the European Union, according to the 2019 CEE Investment Report ‘Thriving Metropolitan Cities‘, a publication by Skanska, Colliers International and Dentons. The report covers business trends and key economic factors that influence the office markets in the cities of five Central and East European countries.
Central and East European countries are the fastest-growing region in the European Union and a dynamic element of the European economy. Its main cities are becoming a serious competition to established metropolises such as London, Paris or Madrid regarding business opportunities. The share of high-tech sectors in employment in the largest cities in CEE, including Prague, has grown by 1.3 percentage points over the last five years, compared with 0.7 percentage points for London and Paris.
Prague has seen a rapid increase in the number of an educated population. Education increases both human capital and income is an important factor of economic growth and create a flexible and dynamic society that adapts better to changes. Human capital is regarded as the single most important factor driving business investors to the region. Today, Prague has a higher percentage of workers with higher education than Berlin and Rome and similar levels to London or Paris.
According to Paweł Dębowski, Partner, Chairman of the European Real Estate Group, the Czech commercial real estate market is witnessing robust interest from international investors, with Prague leading the way. One of the reasons is its convenient location in the centre of Europe and thriving global connection, which resulted in 55% growth of the number of air passengers in the last five years, even though the city is not as popular tourist destination as London, Paris or Rome.