Although the vacancy rate for Prague offices has been falling, construction activity has intensified during Q2 2025, with four projects launched, according to a survey by Colliers.
By the end of 2025, construction is expected to commence on five additional projects, comprising 119,500 sqm of office space. All are located in Prague 4. This may shift the focus of the rental market back to Pankrác, Brumlovka and Roztyly, where the number of new projects has been limited in recent years.
At the end of Q2 2025, the Prague office space market represented 3.94 million sqm. The vacancy rate continues to decline, and at the end of the second quarter of 2025, it stood at 6.6%. This represents a year-on-year decline of 1.3 percentage points and suggests that the continuing supply shortage is squeezing the market.
"The increase in the number of projects under construction is a positive sign for the market and a clear promise for the future. Although only 11,300 sqm will be completed in the second half of 2025, bringing the total volume of construction for this year to only 26,600 sqm (one of the lowest figures for new construction ever recorded), we expect the market to see a positive turnaround," says Josef Stanko, director of market research at Colliers. According to him, up to 600,000 sqm of new office space can be expected between 2027 and 2029. "Many completion dates will likely change, but if developers launch at least half of all potential plans, the market will gain a much-needed influx of new office space," he adds.
Gross realised demand in the first half of 2025 amounted to 253,100 sqm, similar to the previous two years. Net demand, adjusted for transactions by future owners, was 97,400 sqm, which is almost equal to the volume of renegotiations and subleases (94,700 sqm).
"During the second quarter of 2025, we also recorded several pre-leases that fell into the owner occupancy category. Specifically, these include ČEZ, which will occupy its three newly acquired buildings in the Smíchov City project next to the Česká Spořitelna Campus starting from 2028, and another project for Creditas Bank. Creditas acquired what’s known as Rohan City A2 several months ago but has only now begun construction of its future headquarters," notes Josef Stanko, adding that these two transactions represent approximately 61,000 sqm in office space.
The remaining gross demand for the second quarter, amounting to 103,800 sqm, was 47/53 in favour of renegotiations. This falls in line with the continuing trend of lease extensions and renegotiations, given that there is currently very little space available in sought-after locations. In addition, the search and negotiation phase can now take up to 12 months or more, meaning that some tenants can easily miss out if they act too slowly or start too late.
Prime rents for office space in the centre of Prague are around €30 per sqm/month. Rents for the best offices in the wider centre (Karlín, Smíchov, Pankrác, etc.) increased by 50 cents quarter-on-quarter to €20.50. In areas farther from the centre, it remains stable at €16.50. Based on current transaction and construction activity, we expect that the wider centre in particular will provide arguments for a rapid increase in reference rents soon: to €35 in the city centre and €25 in the wider centre.
