Thursday, 16 April 2026
The office sector in Prague is entering a period of constrained availability, as a slowdown in new construction combines with steady occupier interest at the start of 2026.
The city’s total office space is approaching 4 million sqm, yet the addition of new buildings has dropped sharply in recent periods. Only a small amount of space is expected to be completed this year, while the majority of projects currently underway are not due to be finished until later in the decade. This timing gap is reducing the amount of space available in the near term.
As a result, the proportion of vacant offices has declined to around 6 percent across the market, with significantly lower levels in central districts. In these areas, companies looking for modern space are facing increasingly limited options.
This situation is shifting the balance in favour of property owners. Newer buildings are maintaining strong occupancy and stable rental levels, while tenants are finding it more difficult to negotiate favourable terms. In many cases, businesses are choosing to remain in their current locations rather than relocate.
Where moves are taking place, they are typically focused on improving the standard and efficiency of workspace rather than increasing overall size. This is reinforcing demand for newer buildings, while older properties are under pressure to adapt to changing requirements.
Rental levels in the city centre have continued to rise gradually, with top-tier space reaching close to €30 per sqm per month. At the same time, a notable share of future projects has already been secured by tenants ahead of completion, limiting the extent to which upcoming supply will ease current constraints.
Another factor reducing available space is the growing trend of companies securing premises for their own use, removing these buildings from the leasing market altogether.
Although development activity continues in selected areas, new projects are being approached carefully due to cost pressures and complex approval processes. This is particularly evident in central Prague, where planning conditions are more restrictive.
The investment market is showing signs of stabilisation, with continued interest in well-located buildings that offer reliable long-term income. However, older assets are facing increased scrutiny, especially where upgrades are required.
Taken together, these trends suggest that Prague’s office market is moving into a phase where limited new supply, rather than a lack of demand, will be the main factor shaping conditions in the years ahead.
Source: CIJ.World Research & Analysis Team
