Tuesday, 22 September 2026
Passerinvest Group is increasing asking rents across its office portfolio at Brumlovka and Nové Roztyly in Prague by €1 per sqm per month, extending the adjustment to projects currently under development. The Czech developer says the change reflects higher financing costs following a reversal in the interest-rate environment during 2026, although it is absorbing part of the additional cost rather than passing the entire impact to tenants.
The decision comes as Prague’s office market remains relatively tight. Modern office stock stood at approximately 3.95 million sqm at the end of the second quarter, while vacancy remained at 5.8%, according to the Prague Research Forum. Only around 229,100 sqm was vacant across the city, and the vacancy rate had fallen by 70 basis points compared with a year earlier.
New supply remains particularly limited in the short term. Prague is expected to receive only around 37,600 sqm of completed office space during 2026, with just 8,200 sqm scheduled for delivery during the second half of the year. Development activity is increasing further ahead, with approximately 309,300 sqm under construction at mid-year, but almost 58% of that space had already been secured by tenants.
The combination of restricted near-term supply and committed future space has also been reflected in rental levels. Prime city-centre rents remained at around €30 per sqm per month during the second quarter, while inner-city rents increased to €21.50–22.50 and outer-city rents to €16–17. Passerinvest’s own current offer for the Sequoia project at Nové Roztyly ranges from €23.50 to €26.50 per sqm per month. The approximately 33,000 sqm building is under construction and scheduled for completion in early 2028.
“Jako dlouhodobý vlastník se na ekonomiku našich budov nemůžeme dívat jen optikou dnešního dne. Naším cílem je nastavovat ekonomiku projektů průběžně tak, abychom nemuseli v budoucnu reagovat skokovými změnami nájemného. Proto jsme se rozhodli pro dílčí navýšení o jedno euro za metr čtvereční měsíčně. Celý dopad změny finančního prostředí však do nájemného nepřenášíme. Chceme-li stavět a provozovat budovy i nadále, musí ekonomika projektů zůstat dlouhodobě stabilní a odolná. Naštěstí náš model umožňuje dívat se na development, vlastnictví, provoz i financování jako na jeden celek a případně reagovat včas, jako je tomu v tomto případě,“ říká Eduard Forejt, ředitel rozvoje a obchodu Passerinvest Group, a. s.
For existing properties, changes in borrowing costs generally become more significant when debt is refinanced or hedging arrangements are renewed, while schemes still being prepared can incorporate revised financing assumptions directly into their development calculations. Passerinvest argues that this could have wider consequences for the Prague market if higher financing requirements make some planned office schemes more difficult to justify economically.
“Vyšší cena financování představuje významný faktor pro celý realitní trh. Obecně může zásadně ovlivnit ekonomiku připravovaných projektů a v některých případech vést k odložení nebo přehodnocení výstavby. V situaci, kdy zůstává dostupnost nových kancelářských ploch omezená a významná část rozestavěné nabídky je již předpronajata, může zhoršení ekonomiky nových projektů prohloubit nedostatek skutečně dostupných nových ploch,“ dodává Forejt.
The warning is consistent with the current supply picture, although there is not yet sufficient evidence to conclude that financing costs are causing widespread cancellation of Prague office developments. Demand also remains selective: Q2 gross take-up reached 125,400 sqm, but 69% consisted of lease renegotiations and net take-up was considerably lower at 35,800 sqm. The emerging pressure on rents therefore reflects a combination of constrained high-quality supply, development economics and occupier preferences rather than simply rapidly expanding demand.
