Prague's office market is experiencing a supply shortage that will continue through 2026, with vacancy rates dropping to just 5.9% - the lowest since early 2020, according to a report by Colliers. Despite strong demand, limited new construction is creating tension in the market.
Construction activity hit historic lows in 2025, with only five projects totaling 26,600 sqm completed. Four of these were renovations, leaving just one new building - the PernerKarlín development, which was fully pre-leased before completion. While 263,000 sqm across 13 projects remains under construction, most won't be ready until 2028.
"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," said Josef Stanko, Director of Market Research at Colliers.
The total modern office supply fell 0.45% year-on-year to 3.94 million sqm, as some buildings were removed from the market due to use changes. In Prague's five largest office locations - city center, Karlín, Pankrác, Holešovice and Brumlovka - vacancy rates range from just 3% to 5.5%.
Despite supply constraints, gross leasing volume reached 573,400 sqm in 2025, the second-highest in market history. Premium office rents remain stable at €30 per sqm monthly in the city center, while outer areas command €20.50 per sqm monthly. Building certifications through Leed and Breeam have become standard requirements rather than competitive advantages.
