Hybrid work is a major factor influencing the demand for office space. Tenants are increasingly preferring flexibility and modern technological solutions. The trend associated with high demands for environmental standards is pushing investors to innovate and modernize buildings to meet ESG (environmental, social and governance) requirements.
Despite the challenges, the CEE region as a whole continues to grow, thanks to a low supply of office space per capita, low vacancy rates and a skilled workforce. Office projects can benefit from financial assistance through cash subsidies and tax incentives in most regional and selected capital cities, such as Tallinn, Riga, Vilnius and Zagreb.
“Incentives can be significant, with some reaching up to 30,000 euros per new employee, such as in Croatia,” adds Jan Kamoji-Czapinski, adding that office landlords can use these incentives to increase their rental attractiveness.
