Sunday, 1 February 2026
Developers in Prague completed just 26,600 sq m of new office space in 2025, marking the lowest annual volume since systematic monitoring began in 1993. Despite the limited supply, demand for office leasing last year exceeded the five-year average by eight percent, according to data compiled by the Prague Research Forum, which aggregates market information from leading real estate consultancies. By comparison, 72,800 sq m of office space was delivered in the Czech capital in 2024.
Only two office projects were completed in Prague during the final quarter of 2025. These included the PernerKarlín development, which delivered 9,300 sq m of space, and the reconstruction of the Panorama Airport Building, adding a further 2,000 sq m. In total, five office projects were completed during the year, compared with eight in 2024.
At the end of 2025, Prague’s total modern office stock stood at approximately 3.94 million sq m. A further 36,700 sq m of new office space is expected to be completed in 2026.
Construction activity is set to increase in the coming years, with around 263,300 sq m of office space currently under development and scheduled for completion between 2026 and 2028. Although this represents the highest volume of office construction since 2019, more than 60 percent of the space under construction has already been pre-let or occupied.
According to Petr Kareš, Head of Tenant Representation at iO Partners, the market currently offers only a limited amount of newly available office space. At the same time, some tenant companies are streamlining their operations and returning surplus space to the market. He added that several new development projects are in preparation and are expected to become available towards the end of 2027 and in the first half of 2028.
Construction started on two office schemes in Prague during the final quarter of last year. Passerinvest Group began work on the Orion building in Prague 4, which will provide 19,300 sq m of office space. Meanwhile, Mount Capital launched another phase of the E Factory redevelopment in Prague 9, where an additional 5,200 sq m of office space is planned.
Although overall leasing activity in 2025 was above average, demand weakened towards the end of the year. In the fourth quarter, office leasing volumes fell by 19 percent compared with the previous quarter and by 24 percent year-on-year. Tenant demand was concentrated primarily in Prague 5, followed by Prague 2 and Prague 1. Manufacturing companies accounted for more than 20 percent of the total leased area in the final quarter, ahead of pharmaceutical and healthcare occupiers.
Prime office rents in Prague remained unchanged in the last quarter of 2025. In the city centre, headline rents for new office space ranged between €29 and €30 per sq m per month. In inner-city locations, rents stood at €19.50 to €20.50 per sq m, while offices on the outskirts of Prague were offered at €15.50 to €16.50 per sq m.
Source: CTK
