Prague office rents reach record high

Rents for modern office space in Prague have reached record levels, according to a new analysis by real estate consultancy Colliers. In the first quarter of 2025, the average rent for new office buildings near metro stations increased by 3.3% year-on-year and by 6.3% over the past two years. The current average rent stands at €17.4 (approximately CZK 435) per square meter per month.

In central Prague, office space is being leased for over €30 (CZK 750) per square meter, while rents in the wider city center average €20 (CZK 500). In the outskirts, rents are around €16.50 (CZK 410) per square meter.

Colliers attributes the increase to low vacancy rates, driven by limited new office development. Prague currently has approximately 3.96 million square meters of office space, with a vacancy rate of 7%. Of the 278,000 square meters of available space, about half is in buildings completed within the past 15 years. Prague’s vacancy rate is the lowest among the capitals of Central and Eastern Europe, with larger office centers in the city reporting occupancy rates between 94% and 96%. In some areas, such as Budějovická, occupancy exceeds 99%.

Only one new office project, the first phase of the E-Factory offering 8,700 square meters, was completed in the first quarter. Two major renovation projects also commenced: the Isolda building in Pankrác and office spaces in the Kotva department store on Republic Square. By the end of 2025, four new developments totaling 17,900 square meters are expected to be completed, representing the lowest level of new construction in a decade.

“We are increasingly observing the conversion of older office buildings into residential projects,” said Josef Stanko, Director of Market Research at Colliers. “Given the acute housing shortage in Prague, this trend is economically logical but puts additional pressure on the office market. Looking ahead, the outlook is more positive, with up to nine new projects totaling 160,900 square meters expected between 2026 and 2028.”

Despite the rise in rents, demand for office space in Prague was at its lowest level since 2020 during the first quarter. Companies leased a total of 87,700 square meters, with more than half consisting of new leases. Approximately 40% were renewals of existing contracts, and around 5% were subleases.