Office rents in central Prague have reached a new high, crossing EUR 30 per square metre per month for the first time, according to the latest analysis from Colliers. This milestone comes at a time of sustained low vacancy, with the city recording a vacancy rate of just 7.0%, the lowest among Central and Eastern European capitals. The limited availability of new space continues to place upward pressure on prices, particularly in central office zones. Only one office building was completed in Prague in the first quarter of 2025—E-Factory (Pragovka) with 8,700 sqm of industrial-style space. By the end of the year, just four more projects totaling 17,900 sqm are expected, making 2025 the year with the lowest new supply in more than a decade. However, new activity is anticipated to pick up from the second quarter onward, with nine projects (a combined 160,900 sqm) expected to begin construction by year-end, with completions projected between 2026 and 2028. The market is also seeing increased refurbishment activity. Two older buildings began modernisation in the first quarter: the Isola project in Pankrác (8,200 sqm) and the reconstruction of the Kotva department store, which will include new office space by late 2027. At the same time, some older office buildings are being converted into residential use, reducing office stock but supporting a more balanced urban development. Prague currently has 3.96 million sqm of modern office space. With high occupancy in key office hubs—ranging from 93.7% to 96.1%—some companies are delaying or cancelling relocation plans due to lack of available space. Budějovická, with over 99% occupancy, is particularly affected, although changes in ownership, such as Česká spořitelna’s divestments, may alter future availability. Flexible office space remains a small part of the market, accounting for less than 3%. While new centres by Scott.Weber and IWG are underway, others, such as Regus in Prague City Centre, have closed. The sector continues to cater more to startups and event-based users than corporate clients. Gross demand in the first quarter reached 87,700 sqm—the lowest since 2020—while net take-up stood at 47,900 sqm. Lease renegotiations made up 40% of activity, and pre-leases fell to just 1%. Limited speculative development has reduced immediate availability, with only around 38,500 sqm currently vacant in newly completed buildings. One notable transaction during the quarter was ČEZ’s acquisition of three additional buildings in the Smíchov City project. Alongside rising central rents, office space in the wider city centre is now being leased at around EUR 20/sqm/month. In outer districts, rents remain lower at EUR 16.50/sqm/month. Class A office space near metro stations now averages EUR 17.4/sqm/month, reflecting a year-on-year increase of 3.3% and a two-year rise of 6.3%. The continued growth in rents is encouraging longer lease terms, with many tenants and landlords opting for 7- or 10-year agreements to mitigate future fit-out and depreciation costs.