The supply of modern office space in Prague remains constrained, with the vacancy rate standing at 5.8% at the end of the second quarter of 2026, the lowest level since 2020. Total modern office stock reached approximately 3.95 million sqm, yet only one project was completed during the quarter: the renovation of the Danube House building in Prague's Karlín district. The building, developed by CA Immo to Class A standard and seeking LEED Platinum certification, was fully occupied before completion, with Everpure and Allegro among its tenants.
Construction began on three new office projects in the second quarter, all located in central areas of the city, including Vinohradská 8 in Prague 2, which will offer approximately 7,300 sqm of office space alongside around 200 apartments and retail units. Work also started on the renovation of the post office building on Hybernská Street and on the Palace Hybernia project near Náměstí Republiky. "These activities confirm developers' growing interest in boutique office projects, smaller office buildings in central locations that offer companies high-quality space and a distinct identity," said Josef Stanko, director of market research at Colliers. Across Prague, approximately 309,300 sqm of office space is under construction, of which around 58% has been pre-leased, though a significant portion is reserved for anchor tenants such as Česká spořitelna, ČEZ, Creditas and Generali.
Renegotiations accounted for approximately 70% of gross realised demand in the quarter. "The situation is different on the open market. Most new projects are in the early stages of construction and are being offered at rents exceeding current market levels. Tenants are therefore approaching pre-leases with caution and often postponing their decisions until more advanced stages of construction, when the price level will have been better tested by the market," said Stanko. Technology companies were the most active tenants, representing more than one-third of realised demand, followed by firms from the pharmaceutical and healthcare sectors.
Prime headline rent in central Prague held at €30 per square metre per month, while rents in the broader city centre rose to between €21.5 and €22.5 per square metre per month, driven by demand in Karlín, Smíchov, Pankrác and Brumlovka. Offices scheduled for completion in 2027 and 2028 are already being marketed at more than €35 per square metre per month in the city centre and at €23 to €28 in the wider central area, reflecting rising construction and land costs.
A further development in the quarter was the approval of Prague's new Urban Planning Document, which takes effect on 1 September 2026 and is the first comprehensive land-use plan for the Czech capital since 1999. "The new plan brings greater predictability to development planning, clearer rules for land use and better conditions for the development of brownfields and large-scale mixed-use projects combining offices, housing, retail and public infrastructure. It is precisely these projects that will significantly shape the Prague office market in the coming years," Stanko concluded.
