Only 26,300 sqm of new office space will be completed in Prague this year, the lowest figure in the past decade. Although construction activity has slowed significantly, the total volume of projects under construction remains strong at 244,200 sqm across 17 buildings at the end of the third quarter, according to data by Colliers Czech Republic.
The vacancy rate has fallen to 6.45%, while rental prices remain stable. Since the beginning of the year, only 15,300 sqm of new office space has been added in Prague, with just one more project scheduled for completion in the fourth quarter.
"However, the outlook for the coming period looks more optimistic. At the end of the third quarter, a total of 244,200 sqm of office space was under construction in 17 buildings, and by the end of the year, another seven projects with a total area of 99,200 sqm could be launched," said Josef Stanko, Director of Market Research at Colliers.
Despite limited new supply, demand remains strong. Gross take-up in the third quarter reached 176,200 sqm, bringing the total volume for 2025 to 429,300 sqm. Net demand for the year has reached 224,700 sqm, making 2025 one of the most successful years for net realised demand in Prague. Most new demand was recorded in the Smíchov, Pankrác, and Karlín areas.
Domestic capital now owns approximately two-thirds of Prague's office buildings, while Western European investor presence continues to decline. Environmental standards are becoming increasingly important, with 56% of the Prague office market now holding Breeam or Leed certification. Rents remain stable at €30 per sqm monthly for premium city centre space and €20.50 for areas like Karlín, Smíchov, and Pankrác.
