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For IT companies, Brno remains the No. 1 Location

For IT companies, Brno remains the No. 1 Location

Brno offers the lowest rent in the CE region and an optimum vacancy rate

Brno, 14 April 2016 – Brno confirms its position as an ideal site for a wide range of companies – not just shared service centres or IT firms. It follows from a comparison of eight Central European cities that in addition to the lowest rent, Brno also offers the lowest IT professionals’ salaries. The research was conducted by Cushman & Wakefield in cooperation with the CPL human resources consultancy. The comparison comprised Prague, Brno, Bratislava, Budapest, Warsaw, Krakow, Poznan and Wroclaw.  

“In Brno the rent is the lowest in the region and is expected to remain so for some time, although in the centre of the city it has increased slightly during the last half-year and currently it is at 13 euros per square metre per month there,” says Lukáš Netolický, Senior Consultant in the Cushman & Wakefield Office Agency Team.

“This is due to how quickly the newly built offices have been occupied. Projects that are still under construction also have no problem in finding occupants. Unoccupied office space now primarily exists on the outskirts of the city where the rent remains stable,” adds Lukáš Netolický, who specialises in the Brno market.

Wroclaw has the second lowest rent, which is currently 15 euros per square metre per month. The highest monthly rent is in Warsaw: 24 euros per square metre.

“What makes Brno so attractive is that, in addition to the low rent level, the salaries in the IT sector are also low. The average monthly salary (average for the three most frequent vacancies) offered to IT professionals in Brno is 1,775 euros. Among the eight cities under review, Brno is the only one where this salary level is below 2,000 euros per month. Krakow is where IT professionals earn the most: an experienced IT professional in Krakow can earn, on average almost 2,500 euros per month,” says Michal Vyplašil, Head of the CPL Office in Brno specialising in headhunting for IT positions.

Currently the most frequently offered vacancies in Brno include Java Developer, .NET/C# Developer and JavaScript developer.

Brno has a buoyant office market. New office buildings totalling around 60,000 square metres are expected to be built and commissioned in Brno this year, which is more than in Prague. Due to the high demand, new office spaces, especially those in the centre of the city, are likely to be leased quickly. The proportion of empty offices has been continuously declining and currently it is above 13 per cent.

The total office area leased in Brno last year amounted to 58,000 square metres. Of this, more than a half (52%) was leased to IT companies. They prefer modern offices at prestigious addresses to be able to offer an attractive working environment to their employees and to attract and retain the best experts. Demand for high-quality offices is also high among companies other than those in the IT industry.

The Edwards international company is the most recent example of the lease of office space in Brno. In cooperation with Cushman and Wakefield, this company decided at the beginning of April to extend its leased area in the Spielberk Office Centre in order to be able to expand the services it provides from Brno.

“For our business in shared services we need representative areas, well-accessible offices and good facilities for our employees. The Spielberk Office Centre offers all this and therefore it is an ideal site for our Head Office,” says Pavel Šustek, Director at Edwards for the Czech Republic.