The prime office market in Prague is freezing due to low levels of new development and a shortage of high-quality office space, finds a new Savills analysis.
"Over the past two years, in 2024 and 2025, only three of the twenty largest office transactions in Prague were relocations and new lease agreements. Rather than moving, companies are increasingly opting to renew their existing leases, as the availability of high-quality office space has become limited," says Pavel Novák, Head of Office Agency at Savills.
In 2025, only 26,600 sqm of new office space was completed in Prague, the lowest annual volume in the market's history. A slight increase to 36,700 sqm is expected in 2026. By comparison, during periods of growth, Prague typically delivered between 150,000 and 200,000 sqm of new office space annually.
"Rental levels are no longer the primary indicator when companies consider relocating. Today, the more significant issue is the cost of moving and fitting out office space. Given the scale of these investments, the economics of a relocation generally only make sense when committing to a long-term lease, for example eight to ten years. However, making such a commitment is often challenging for companies from a strategic planning perspective," adds Novák.
Vacancy rates in prime office buildings across Prague's key business districts have fallen below 5%. A total of 16 office buildings, comprising 312,900 sqm, are currently under construction. However, six of these projects, representing 54% of the total pipeline by floor area, are owner-occupied schemes. The most notable examples include the new headquarters of ČEZ, Erste Group, and the Creditas Group.
