Prague Research Forum Announces Office Market Figures for Q1 2025:
- Reconstruction of two office projects commenced during Q1
- Only one project completed – the first phase of E Factory in Prague 9
- Net take-up increased by 5% year-on-year
- Vacancy rate continued to decline – dropping to 7.0%
- Prime rents in Prague city centre rose to €30 per sq m per month
Introduction
The Prague Research Forum is pleased to announce the office market figures for the first quarter of 2025. The forum’s members—CBRE, Colliers, Cushman & Wakefield, iO Partners, Knight Frank, and Savills—share non-sensitive information to provide consistent, accurate, and transparent data about the Prague office market.
RICS supports the activities of the Prague Research Forum.
Commentary
Pavel Novák, Head of Office Agency, Savills Czech Republic, comments:
“The start of new construction, after a longer pause, is a clear positive signal for the Prague office market. While the newly launched projects remain, for many actively searching companies, either out of reach in terms of timing or location, it is evident that developers are being encouraged by stronger demand activity and the gradual rise in rental levels. From our perspective as agents, companies are still very much focused on addressing their space needs. The market feels dynamic, but limited supply presents a challenge. This was reflected in the statistical decline in demand in Q1 – though it is not a sign of cooling interest, but rather
a challenge in aligning tenant expectations with the current offer.”
Office Stock and New Supply
The total volume of modern office space in Prague reached 3.96 million sq m in the first quarter of 2025.
Only one office project was completed during Q1 2025 – the first phase of the E Factory development
in Prague 9, delivering 8,700 sq m of office space. For the remainder of the year, only 17,900 sq m of new or refurbished office space is expected to be delivered.
At the beginning of 2025, reconstruction commenced on two projects – Isola (8,200 sq m) in Prague 4 and the Kotva department store in Prague 1, which will add 7,300 sq m of office space upon completion.
Approximately 173,100 sq m of office space was under construction at the end of the first quarter
of 2025. The largest share was located in Prague 5 (70%), followed by Prague 4 (17%) and Prague 1 (8%). The majority of this space has already been pre-leased. Modern office stock comprises Class A buildings (74%), with the highest-quality AAA-rated space accounting for almost 20% of the total office stock.
Office Take-up
Total gross take-up (including renegotiations of existing leases and subleases) stood at 87,700 sq m in the first quarter of 2025, marking a 14% year-on-year decrease and a 53% quarter-on-quarter decrease.
The highest gross take-up in Q1 was recorded in Prague 4 (27%), Prague 8 (18%), and Prague 5 (14%). The strongest demand for office space came from financial companies (19%), technology companies (16%), and professional services firms (12%).
New leases and expansions within existing buildings accounted for 53% of total gross take-up. Renegotiations of existing leases represented 40%, while subleases accounted for 6%. The remainder consisted of pre-leases.
Major Office Leasing Transactions
Among the most significant transactions of the first quarter of 2025 was the renegotiation of a lease
by an undisclosed financial institution in the Brumlovka Beta building (6,900 sq m) in Prague 4. Other notable transactions included the renegotiation of McKinsey’s lease in the Main Point Pankrác building (4,400 sq m), also located in Prague 4, and the sublease by Knowlimits in the Forum Karlín I building (4,400 sq m) in Prague 8.
Office Vacancy and Net Absorption
Net absorption reflects the change in occupied office space on the market over a given period. Compared to the previous quarter, occupied office space increased by 20,200 sq m.
The vacancy rate in Prague continued its gradual decline and reached 7.0% at the end of the first quarter of 2025.
Compared to the previous quarter, the vacancy rate decreased by 0.3 percentage points, and it was also lower than in the same period last year, when it stood at 7.4%. The total volume of vacant modern office space in Prague declined to 278,200 sq m.
The lowest vacancy rates were recorded in Prague 2 (2.5%) and Prague 8 (4.2%), while the highest vacancy rates were observed in Prague 3 (14.9%) and Prague 9 (14.8%).
Rents
In the first quarter of 2025, prime rents, representing the headline rate for the best available office space, increased in the city centre and currently range between €29.00 and €30.00 per sq m per month. In the inner-city locations, prime rents rose to between €19.00 and €20.00 per sq m, while in outer-city areas they remain stable at between €15.50 and €16.50 per sq m.
Market dynamics continue to exert upward pressure on rental levels — a combination of limited new supply, stable demand, and high construction costs is driving further growth in prime office rents, particularly in sought-after locations.