Tuesday, 3 March 2026
The Prague office market is entering 2026 with limited new supply and vacancy at its lowest level in several years, while occupier demand remains active despite constrained availability.
At the end of 2025, approximately 263,000 sqm of office space across 13 projects was under construction in Prague. However, most of this pipeline is scheduled for completion in 2028, meaning that supply pressures are expected to persist in the near term.
Only around 26,600 sqm of office space was completed in 2025, making it one of the weakest delivery years on record. Of the five projects delivered, four were refurbishments or reconstructions. The only newly built office scheme completed during the year was PernerKarlín, which was fully pre-leased shortly after construction began in 2023.
Although construction activity has increased, only four projects totalling approximately 30,400 sqm of vacant space are currently scheduled for completion in 2026. A similar level of vacant space is expected in 2027, although total completions may be higher due to pre-leased or owner-occupied schemes.
“Hope for the market lies in projects in the pipeline. Projects that could be started in 2026 and completed in 2028 represent a total of 151,500 m². However, nothing is certain, as developers often adjust their schedules. Still, some of them have already started extensive preparatory work in certain locations, such as Penta Real Estate’s Vinohradská project or Passerinvest Group’s Sequoia project,” said Josef Stanko, Director of Market Research at Colliers.
Total modern office stock in Prague reached approximately 3.94 million sqm at the end of 2025, spread across more than 470 buildings. This represented a slight year-on-year decline, largely due to several properties being withdrawn from the market following changes in use. With new construction unable to offset these reductions, vacancy fell to 5.9%, its lowest level since early 2020.
In Prague’s largest office districts, including the city centre, Karlín, Pankrác, Holešovice and Brumlovka, vacancy levels are reported to range between roughly 3% and 5.5%, reflecting particularly tight availability in established submarkets.
Leasing activity remained robust in 2025. Gross take-up reached approximately 573,400 sqm, making it one of the strongest years on record. A notable component of activity came from owner-occupiers, particularly financial institutions and energy group ČEZ, which have initiated construction of their own headquarters or campuses.
Net take-up, including new leases, expansions and pre-leases, amounted to 307,300 sqm, accounting for just over half of total leasing volume. The overall level of net demand was broadly comparable to 2024.
Given the limited availability of alternative space, market observers expect lease renegotiations to account for a significant share of activity in 2026.
Sustainability certifications are increasingly regarded as a standard requirement rather than a differentiating feature. LEED certification is typically associated with new developments, while BREEAM In-Use is widely applied to existing buildings.
“Certifications are no longer a marketing tool, but a standard expected by tenants and investors alike. Buildings without a clearly defined sustainability strategy will find it increasingly difficult to compete, especially if they are targeting the highest rents and the best clientele,” added Josef Stanko.
Prime headline rents in Prague’s city centre remain around €30 per sqm per month. In established inner-city districts such as Karlín, Smíchov and Pankrác, rents are reported at approximately €20.50 per sqm per month, while outer locations average around €16.50 per sqm per month.
“Based on ongoing transactions and proposed rents in upcoming projects, it is likely that rents in and around the city center will increase, but only to the extent that demand allows. So far, there have been few such cases,” Stanko said.
With limited short-term supply and continued occupier activity, rental levels are expected to remain stable, with potential for selective upward pressure in prime locations.
Source: Colliers
