Although more than 263,000 sqm of office space, as part of 13 projects in total, was under construction in Prague at the end of last year, most of it will not be completed until 2028. The limited supply of office space will therefore continue over the next two years, further exacerbating tensions in a market with a vacancy rate of just 5.9 per cent. According to Colliers, it is this structural shortage of quality space that will determine both rental dynamics and tenants’ bargaining power in the coming year.
Historically low new construction
In terms of completed construction, 2025 was the weakest year ever in the history of the Prague office market. Only five projects with a total area of 26,600 sqm were completed, four of which were reconstructions or renovations. The only new building during the past year was the PernerKarlín building, which was fully pre-leased shortly after construction began in 2023.
Although current construction indicates a very promising future, most of the projects currently under construction will not be completed until 2028. Only four projects with a total of 30,400 sqm of vacant space are scheduled for completion in 2026. A similar volume of vacant space is currently expected for 2027, although the total area delivered should be greater.
“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 sqm. 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,” comments Josef Stanko, Director of Market Research at Colliers.
Supply is falling, and vacancy rates are below “healthy” levels
The total supply of modern office space in Prague at the end of 2025 was 3.94 million sqm spread across more than 470 buildings. This represents a year-on-year decline of 0.45 percent. The reason for this drop is that some buildings have been taken off the market due to a change: low new construction cannot compensate for this decline. The vacancy rate continued to fall, reaching 5.9 percent, which is the lowest value since the beginning of 2020 and also below the commonly considered “healthy” market range. In Prague’s five largest office locations – the city centre, Karlín, Pankrác, Holešovice and Brumlovka, which together account for 48 percent of the Prague office market—vacancy rates range from 3 to 5.5 percent.
Strong demand even without significant market growth
Despite limited supply, gross leasing volume reached a total of 573,400 sqm in 2025: the second-highest result in the market’s history. The increase in so-called owner leasing played a significant role with large companies, almost exclusively financial institutions and ČEZ, starting to build their own headquarters and campuses.
Net leasing volume, which includes new leases, expansions and pre-leases, amounted to 307,300 m², representing approximately 54% of total leasing activity. The absolute volume of net realised demand was similar to that in 2024.
In 2026, most activity is expected to consist of lease renegotiations, precisely because of the lack of alternatives on the market.
Certification as a new standard, not an advantage
Building sustainability and quality have become key factors influencing decision-making. Two main certification systems have established themselves as favourites among all possible solutions on the Prague office space market: LEED and BREEAM. The data shows that LEED is mainly used for new projects, while BREEAM In-Use is the most common solution for 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,” adds Josef Stanko.
Rents: stability with growth potential
Benchmarks for the Prague office market remain stable. Rents for premium offices in the city centre are €30/sqm/month, while in the outskirts of the city (areas such as Karlín, Smíchov, and Pankrác), they remain at €20.50/sqm/month after an increase in the previous quarter. Rents in the outskirts of the city are around €16.50/sqm/month. “Based on ongoing transactions and proposed rents in upcoming projects, it is likely that rents in and around the city centre will increase, but only to the extent that demand allows. So far, there have been few such cases,” explains Josef Stanko
