Prague’s office market saw a significant injection of activity in Q1 2026, with the commencement of three major projects pushing the total volume of space under construction to nearly 313,000 sqm. According to the Prague Research Forum, this shift marks a notable transition in developer sentiment, moving away from a strictly pre-let model toward speculative development.
Newly initiated projects include the Sequoia building in Prague 4 (33,000 sqm), Churchill III in Prague 2 (20,800 sqm), and Dvory Vysočany in Prague 9 (6,000 sqm). This pipeline is concentrated heavily in Prague 5 and Prague 4, which account for 38% and 35% of ongoing construction, respectively. Notably, 63% of the total space currently under development has already been secured via pre-lease agreements.
Radka Novak, International Partner, Head of Office Agency CEE at Cushman & Wakefield, said: ‘While over the past two years construction was initiated almost exclusively on a pre-let basis, several developers have started office projects this year without secured pre-lease agreements. This reflects stable occupier demand and the continued decline in vacancy rates’.
Despite the construction boom, immediate new supply remained limited in Q1 2026, with only 8,600 sqm delivered across two projects: BBT Poděbradská and River Bridge Office Hub. Total deliveries for the remainder of 2026 are expected to reach a modest 36,700 sqm.
Market demand remains driven by the technology and financial sectors, which accounted for 28% and 19% of gross take-up, respectively. While gross take-up fell 26% quarter-on-quarter to 105,400 sqm, it represents a 19% increase compared to the same period last year. The city-wide vacancy rate held steady at 5.8%, though submarkets like Prague 2 reported levels as low as 2.1%.
