Prague Office Market Q1 2026: Vacancy Falls as Leasing Holds Firm
Prague’s office market entered 2026 with solid occupier activity and tightening vacancy. Gross take-up reached 105,400 sqm in Q1 2026, up 19% y/y, while net take-up totalled 44,900 sqm. The vacancy rate declined to 5.8% at the end of March, and 312,900 sqm of office space was under construction.
Supply remains limited
New supply remained limited. Around 8,600 sqm was completed in Q1 across two projects: BBT Poděbradská in Prague 9 with 5,900 sqm and River Bridge Office Hub in Prague 5 with 2,700 sqm. Total modern office stock reached 3.93 million sqm, with Class A buildings accounting for 72% and AAA projects for 16%. Full-year 2026 completions are expected at 36,700 sqm, 65% below the 10-year average.
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Construction activity increased during the quarter. Three new office projects with a combined 59,800 sqm started construction, including Sequoia in Prague 4, Churchill III in Prague 2 and Dvory Vysočany in Prague 9. The development pipeline is at its highest level since Q3 2019 and is up 81% y/y, but more than 60% of space under construction is already pre-leased or owner-occupied.
Leasing driven by renewals
Leasing was driven mainly by renewals. Renegotiations accounted for 57% of gross demand, while Q1 gross take-up was down 26% q/q. Prague 8 captured the largest share of demand at 48%, followed by Prague 4 with 22%. Technology companies led occupier activity with 28%, followed by financial institutions with 19%. Net absorption stayed positive at approximately 7,800 sqm.
Vacancy tightens and rents edge up
Vacancy continued to decline, reaching 228,300 sqm of available space. The rate fell by 114 bps y/y. Class A vacancy stood at 5.7%, below the city average, while Class B vacancy was 6.2%. Prague 10 recorded the highest vacancy at 12.4%, while Prague 2 had the lowest at 2.1%. Immediate sublease availability was broadly stable at around 21,200 sqm.
Prime headline rents in the city centre remained stable at EUR 30.00 sqm/month. New developments pushed inner city prime rents to EUR 22.00–24.00 sqm/month, while outer city rents increased slightly to EUR 15.50–17.00 sqm/month. Office investment volume reached EUR 74 million in Q1 2026, equal to 18% of total quarterly investment volume.
Outlook
Looking ahead, limited new supply in 2026–2027 is expected to support further vacancy decline. Pipeline projects in central and established office areas are targeting premium rental levels, creating further upward pressure on prime headline rents. Market conditions are increasingly shifting in favour of landlords.
Head of Office Agency
Head of Research
