Only one office project was completed in the Prague office market during Q1 2025, adding 8,700 sqm to the total stock of 3.96 million sqm, reveals Prague Research Forum in its Office Market Figures for Q1 2025.
For the remainder of the year, only 17,900 sqm of new or refurbished office space is expected to be delivered. At the beginning of 2025, reconstruction commenced on two projects – Isola (8,200 sqm) in Prague 4 and the Kotva department store in Prague 1, which will add 7,300 sqm of office space upon completion. Approximately 173,100 sqm of office space was under construction at the end of the first quarter of 2025. The majority of this space has already been pre-leased.
“The start of new construction, after a longer pause, is a clear positive signal for the Prague office market. While the newly launched projects remain, for many actively searching companies, either out of reach in terms of timing or location, it is evident that developers are being encouraged by stronger demand activity and the gradual rise in rental levels. From our perspective as agents, companies are still very much focused on addressing their space needs. The market feels dynamic, but limited supply presents a challenge. This was reflected in the statistical decline in demand in Q1, though it is not a sign of cooling interest, but rather a challenge in aligning tenant expectations with the current offer,” commented Pavel Novák, Head of Office Agency at Savills Czech Republic.
Modern office stock comprises Class A buildings (74%), with the highest-quality AAA-rated space accounting for almost 20% of the total office stock. Total gross take-up (including renegotiations of existing leases and subleases) stood at 87,700 sqm in the first quarter of 2025, marking a 14% year-on-year decrease and a 53% quarter-on-quarter decrease. The strongest demand for office space came from financial companies (19%), technology companies (16%), and professional services firms (12%). New leases and expansions within existing buildings accounted for 53% of total gross take-up. Renegotiations of existing leases represented 40%, while subleases accounted for 6%. The remainder consisted of pre-leases.
Among the most significant transactions of the first quarter of 2025 was the renegotiation of a lease by an undisclosed financial institution in the Brumlovka Beta building (6,900 sqm) in Prague 4. Other notable transactions included the renegotiation of McKinsey’s lease in the Main Point Pankrác building (4,400 sqm), also located in Prague 4, and the sublease by Knowlimits in the Forum Karlín I building (4,400 sqm) in Prague 8.
The vacancy rate in Prague continued its gradual decline and reached 7.0% at the end of the first quarter of 2025. Compared to the previous quarter, the vacancy rate decreased by 0.3 percentage points, and it was also lower than in the same period last year, when it stood at 7.4%. The total volume of vacant modern office space in Prague declined to 278,200 sqm.
In the first quarter of 2025, prime rents, representing the headline rate for the best available office space, increased in the city centre and currently range between €29.00 and €30.00 per sqm per month. In the inner-city locations, prime rents rose to between €19.00 and €20.00 per sqm, while in outer-city areas they remain stable at between €15.50 and €16.50 per sqm.
Market dynamics continue to exert upward pressure on rental levels — a combination of limited new supply, stable demand, and high construction costs is driving further growth in prime office rents, particularly in sought-after locations.
