Wednesday, 21 October 2026
Prague’s office market continued to experience a reduction in available accommodation during the third quarter of 2026, with vacancy falling to 5.65% and rents for premium properties increasing in central and inner-city locations. However, the latest figures from the Prague Research Forum indicate that businesses remain cautious about committing to new premises. Total leasing activity reached 107,000 sqm between July and September, representing a decline of 41% compared with the same period last year, while more than half of the space covered by signed agreements involved companies extending existing leases.
The Czech capital had approximately 3.95 million sqm of modern office accommodation at the end of September, with no newly completed developments or major refurbishments qualifying for inclusion in the market figures during the quarter. With the total amount of office space remaining unchanged, a modest increase in occupied accommodation contributed to a further reduction in vacancy. Approximately 222,900 sqm was available for occupation at the end of the period, while the vacancy rate declined by 11 basis points compared with June and by 74 basis points compared with September 2025.
The availability of offices continues to vary considerably between individual districts. Prague 2 recorded the lowest vacancy rate at just 1.2%, followed by Prague 1 at 3.6%, reflecting the limited choice of modern accommodation in these central locations. By comparison, Prague 10 recorded vacancy of 12%, while Prague 3 stood at 11.1%. These differences highlight the importance of location in determining market conditions, with businesses seeking premises in established central districts facing fewer alternatives than those considering areas with a larger supply of available offices.
Rental levels reflected these differences during the quarter. The highest rents achieved for premium offices in Prague’s city centre increased to between €31 and €32 per sqm per month, while comparable properties in inner-city locations reached €22.50–23.50 per sqm. In outer-city districts, rents remained unchanged at €16–17 per sqm per month. The figures suggest that rental growth is concentrated in locations where suitable modern accommodation is relatively scarce, rather than representing a uniform increase across the capital.
Despite declining vacancy and higher rents in selected locations, overall leasing activity weakened significantly. The 107,000 sqm recorded during the quarter represented a reduction of 20% compared with the previous three months and 41% year-on-year. Renewals and extensions of existing agreements accounted for 53% of this activity, while new leases represented 30%. Agreements involving additional accommodation taken by existing occupiers contributed 6%, commitments to space in buildings under construction accounted for 9%, and subleases represented the remaining 2%. The figures indicate that many companies continue to prioritise remaining in their current premises rather than moving to alternative locations.
A different picture emerges when existing lease renewals and subleases are excluded. New leasing commitments, including expansions and agreements for future buildings, reached 48,800 sqm, representing an increase of 28% compared with the second quarter. Nevertheless, the amount of office space actually occupied across Prague increased by only approximately 5,700 sqm during the period. These measurements reflect different aspects of the market, as newly signed leases do not necessarily result in immediate occupation. The relatively modest increase in occupied accommodation therefore indicates that the reduction in vacancy was not accompanied by substantial growth in the amount of space being used by businesses.
Prague 4 remained the most active office district, accounting for 41% of all leasing agreements recorded during the quarter. Prague 8 followed with 18%, while Prague 5 represented 15%. Technology businesses generated the largest share of activity at 28%, followed by pharmaceutical and healthcare companies with 11% and professional services firms with 10%. The largest disclosed agreement involved Microsoft renewing its lease for 12,800 sqm at the Delta building in Brumlovka, Prague 4. Other significant transactions included Adastra extending its occupation of 5,300 sqm at Mississippi House in Prague 8 and NET4GAS renewing 4,700 sqm at Kavčí Hory Office Park in Prague 4.
Construction activity remained largely unchanged during the quarter, with approximately 308,900 sqm of office accommodation being developed across Prague at the end of September. This represented an annual increase of 27%, despite the absence of significant quarterly growth. Prague 5 accounted for 39% of the development pipeline, followed by Prague 4 with 36%, meaning that three-quarters of the capital’s office construction activity was concentrated in these two districts. The geographical distribution of development suggests that future additions to the market will remain focused on established business locations rather than being evenly distributed across the city.
Approximately 61% of the accommodation currently under construction had already been committed to future occupiers, leaving an estimated 120,500 sqm without confirmed tenants. Although this provides some indication of the amount of space that developers may still need to lease, it does not represent accommodation immediately available for occupation. The effect of new buildings on future vacancy will depend on their completion dates, the leasing of remaining space and whether companies moving into these properties release accommodation elsewhere in Prague. Consequently, the current development pipeline may create additional options for occupiers without necessarily producing an equivalent increase in occupied office space.
Pavel Novák, Head of Office Agency at Savills, observed that the combination of low vacancy and rising rents does not necessarily indicate a broad recovery in demand. The continued importance of lease renewals, together with the substantial annual decline in overall leasing activity, suggests that companies remain selective when considering relocation. For occupiers, moving to new premises can involve higher rental commitments and additional expenditure, while landlords in locations with limited availability may be better positioned to secure higher rents. The result is a market experiencing different levels of pressure depending on location and property quality.
The third-quarter figures illustrate the increasingly selective nature of Prague’s office market. Limited new supply and modest growth in occupied accommodation have contributed to falling vacancy, while premium properties in central locations continue to achieve higher rents. At the same time, the dominance of renewals and the decline in total leasing activity demonstrate that businesses are not expanding or relocating at a pace that would indicate a broad increase in demand. With more than 300,000 sqm under construction, future market performance will depend on how successfully developers attract occupiers and whether companies become more willing to commit to new office accommodation.
