Prague Office Market: A Closer Look at 2025 Trends

Prague's office market in 2025 presents an intriguing paradox. While the city saw the lowest number of completed projects in the past ten years, with only 26,300 m² of new office space delivered, the market as a whole demonstrates remarkable strength. This limited new supply is met by a surge in demand and a robust pipeline of ongoing construction, signalling a dynamic and competitive environment for businesses looking to rent office space in Prague.

Robust Demand Outpaces New Supply

The year 2025 saw a remarkable surge in office demand, with gross realized demand reaching an impressive 429,300 m². Net demand stood at 224,700 m², marking it as one of the most successful years on record for the Prague office market. This strong appetite for office space underscores a vibrant economy and business expansion within the city. Despite the low number of completed projects, the development pipeline remains strong, with 244,200 m² of office space currently under construction across 17 buildings at the end of the third quarter. Furthermore, an additional 7 projects, totaling 99,200 m², are slated to commence by the end of the year, with completion expected in 2027-2028.

Shrinking Vacancy and Market Competitiveness

Reflecting the strong demand and limited new supply, the overall office vacancy rate in Prague has tightened significantly, dropping to a low 6.45% (representing 254,200 m² of available space). This downward trend indicates an increasingly competitive environment for businesses seeking prime office space in Prague. The market is becoming more landlord-favorable, putting pressure on tenants to make timely decisions for their office space needs.

The Green Advantage: LEED and BREEAM Certified Offices

Sustainability is no longer just a buzzword in Prague's commercial real estate sector; it's a key market differentiator. The market places a strong emphasis on certifications like LEED and BREEAM, with 56% of the total office market already certified. Notably, these eco-friendly buildings boast an even lower average vacancy rate of 5.9%. Choosing a certified office building in Prague not only aligns with corporate ESG goals but also often provides a more attractive, efficient, and modern workspace that can enhance employee well-being and productivity.

Prague Office Rental Prices: What to Expect

Understanding rental costs is crucial for any business planning its relocation or expansion in Prague. Rental prices for premium office space vary significantly by location:

  • City Centre: €30/m²/month
  • Near-Centre (Karlín, Smíchov, Pankrác): €20.50/m²/month
  • Outskirts: €16.50/m²/month

With tightening supply and robust demand, expectations are set for rapid rent growth, particularly in the prime central and near-central locations. Businesses should factor these rising costs into their strategic planning for office space in Prague.

Who Owns Prague's Offices? The Dominance of Domestic Capital

An interesting aspect of the Prague office market is the ownership structure. Approximately two-thirds of the city's office spaces are owned by domestic capital, indicating a strong local investment presence and confidence in the market's long-term potential.

Looking Ahead: A Dynamic Future for Prague's Office Market

The Prague office market in 2025 has demonstrated remarkable resilience and growth, characterized by strong demand, diminishing vacancy, and a healthy development pipeline. For businesses seeking office space in Prague, navigating this dynamic market requires strategic planning and timely decision-making to secure the best locations and facilities, especially as rental prices are projected to continue their upward trajectory.

Source: kurzy.cz