The total size of modern office stock in Prague has reached 3.94 million sqm at the end of Q2 2025. Renegotiations are expected to dominate, and larger tenants are remaining in a holding pattern, according to the data released by Prague Research Forum for the second quarter of 2025.
In Q2 2025, construction commenced on four office projects, three of which are located in Prague 8: the refurbishment of Danube House (19,900 sqm), the new construction of Rohan City A2 for Creditas HQ (16,800 sqm), and the new construction of Vydrovka (6,700 sqm).
Currently, 212,600 sq m of office space is under construction, with scheduled completion between 2025 and 2028, representing a quarter-on-quarter increase of 23%; however, only 11,300 sqm is scheduled for completion in 2025.
New supply in Q2 2025 included two newly refurbished buildings: NR7 (4,500 sqm) and VN62 (2,100 sqm), both located in Prague 1. Most of the modern office stock (74%) comprises Class A buildings, while the highest quality AAA-rated space accounts for approximately 19%.
Total gross take-up, driven by owner-occupation transactions, reached 164,800 sqm in Q2 2025. This represents a quarter-on-quarter increase of 87%, and a year-on-year decrease of 24%. Total volume in Q2 2024 was, however, boosted by a single large transaction of 75,000 sqm.
Preleases were driven solely by owner-occupation deals. Excluding owner-occupation deals, the market was still driven by renegotiations, accounting for 52% of the remaining gross demand. New leases and expansions accounted for 47%, while subleases contributed only 1%.
The biggest transaction of the second quarter of 2025 was ČEZ’s owner-occupation deal for its future headquarters in the Smíchov City complex in Prague 5, totalling almost 44,200 sqm and Creditas’s owner-occupation deal for its future headquarters in the Rohan City complex in Prague 8, totalling more than 16,800 sqm.
Net absorption, reflecting the change in occupied office space, increased by 23,800 sqm compared to the previous quarter. The office vacancy rate in Q2 2025 decreased by 43 bps quarter-on-quarter to 6.57%. Total vacant office space reached 259,000 sqm at the end of the quarter.
Prime headline rents remained stable in the second quarter of 2025 at around €29.00-30.00 per sqm per month in the city centre, prime rent in the inner city increased slightly to €19.50-20.50 per sqm per month and €15.50-16.50 per sqm per month in the outer parts of Prague.
In addition to rents, growing construction costs are increasingly reflected in the total volume of fit-out contributions and other forms of incentives provided by landlords.
