The Prague office market is showing signs of recovery as the developers launched three new office projects in Q1, and the volume of space under construction rose by 81% year-on-year. Pre-leasing is gradually returning, and there is a growing willingness to build speculatively without pre-secured tenants.
The volume of newly completed office space was low in the first quarter of 2026, with only two projects totalling 8,600 sqm completed. However, three new projects have been launched, adding 59,800 sqm to office space under construction and bringing the total volume under construction to nearly 313,000 sqm. The share of speculative construction is growing, with developers launching projects without secured tenants, banking on the continuing shortage of office space in central Prague.
The total supply of modern office space stood at 3.93 million sqm at the end of the first quarter, representing a slight decline as older buildings disappear from the market faster than new ones are being built. The vacancy rate remained stable at 5.8%, though this masks polarisation. "Top-tier AAA-class buildings in the city center recorded a vacancy rate of just 2.3%, so prospective tenants have practically nothing to choose from," explains Josef Stanko, Director of Market Research at Colliers. "Prague thus has two distinct office markets: one overheated and the other stagnant."
Gross demand reached 105,400 sqm in Q1, a 19% increase year-on-year. Renegotiations of existing leases dominated, accounting for 57% of all activity. Pre-leases are beginning to return after being marginal in 2025, now accounting for 15% of demand. One example is technology firm Everpure, which secured 15,000 sqm in the renovated Danube House in Karlín.
Rents in prime city center locations have remained stable at €30 per sqm per month, but prime rents in the wider city center have risen to €21-22. In Karlín, rents reached €24, while prices on the city's outskirts ranged from €15.50 to €16.50. Over the past five years, prime rents in the city center have risen by more than 30%. New projects in central Prague are aiming for asking rents exceeding €35 per sqm.
