The office vacancy rate in Prague dropped to 5.9% in Q4 2025, the lowest level since the beginning of 2020, according to the Prague Research Forum. Despite limited new supply of just 26,600 sqm in 2025, gross take-up reached 573,200 sqm, standing 8% above the five-year average.
In 2025, only five office projects totalling 26,600 sqm were completed, representing the lowest annual new supply on record. Q4 completions included PernerKarlín (9,300 sqm) in Prague 8 and the refurbishment of Panorama Airport Building (2,000 sqm) in Prague 6. Construction activity increased by 60% year-on-year to 263,300 sqm, with more than 60% of this space already pre-leased or owner-occupied.
"The current situation in the Prague office market offers only a limited amount of new office space. On the other hand, occupiers continue to optimise their operations, releasing surplus capacity back to the market," said Petr Kareš, iO Partners Head of Tenant Representation. "At the same time, new development projects are moving into the construction phase, with delivery expected towards the end of 2027 and in the first half of 2028."
Total gross take-up reached 143,400 sqm in Q4, representing a quarter-on-quarter decrease of 19%. The most significant transaction was Siemens' renegotiation at City West (21,900 sqm) in Prague 5. Other notable deals included Johnson & Johnson's lease renewal at Mechanica 01 (10,600 sqm) and an FMCG company's renegotiation at Building B, Brumlovka (8,900 sqm) in Prague 4.
Prime headline rents in Prague remained stable in Q4 2025. In the city centre, prime rental levels stood at €29.00-30.00 per sqm per month, while rents in inner city locations reached €19.50-20.50 per sqm per month and €15.50-16.50 per sqm per month in the outer parts of Prague.
