Prague Office Market Q1 2026: Limited Supply Supports Rental Levels
The Prague office market recorded net take-up of 44,900 sqm in Q1 2026, while gross demand reached 105,000 sqm. Total stock stood at 3.93M sqm and vacancy declined to 5.8%. Prime rents remained stable at EUR 30.0/sqm/month, reflecting tightening availability across key locations.
Demand led by technology sector
Leasing activity was dominated by the technology sector, accounting for 46% of net take-up. Finance, FMCG and public sector each contributed 6%, while other sectors made up the remaining 36%. Renegotiations continued to play a significant role, representing around 57% of total activity, highlighting occupiers’ preference to stay in existing premises.
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Limited supply and rising development activity
Only 9,000 sqm of new office space was delivered in Q1, across two projects totalling 8,600 sqm. At the same time, development activity increased, with 313,000 sqm under construction. Around 63% of this pipeline is already pre-let, limiting future availability and supporting market fundamentals.
Stable rents with upward pressure in selected areas
Prime rents remained unchanged in most districts, reaching EUR 30.0/sqm/month in Prague 1 and EUR 20.5 in Prague 4. Prague 5 stood at EUR 18.0, while Prague 8 recorded growth to EUR 24.0/sqm/month. The combination of limited supply and strong pre-leasing continues to support rental levels across the city.
With vacancy at 5.8% and a significant share of pre-let space in the pipeline, tenants face increasingly limited options. Future market performance will depend on delivery timelines and occupier decisions, particularly in core submarkets.
Head of Office
Head of Research
