H1: Prague has one of the lowest office vacancy rates in Europe

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Office vacancy in Prague: 5.9% compared with 9.7% in Europe

BNP Paribas Real Estate tracks 34 office markets across Europe. Average vacancy across these markets rose by 0.3 percentage points year-on-year to 9.7% in Q2 2026. At 5.9%, Prague is significantly below this average. Only Vienna (3.9%), Luxembourg (4.5%) and Toulouse (4.7%) report lower figures.

The difference is even more pronounced in the region. Warsaw stands at 8.5%, Budapest at 12.2% and Bucharest at 13.3%. For comparison: Paris stands at 14.2%, Frankfurt at 11.8% and Berlin at 9.6%.

Why office vacancy is rising in Europe

It is not due to new buildings. Construction activity is limited in Europe, and a large share of planned projects has already been pre-let. Vacancy is rising mainly because companies are vacating older premises and moving into smaller but higher-quality offices.

Office demand in Europe has also slowed. In the 18 major cities, 3.64 million m² was leased in H1 2026, 9% less than a year earlier. Large transactions were particularly lacking.

Flight to quality: the gap between the city centre and the outskirts is widening

Tenants are moving in search of quality (the so-called flight to quality). They are looking for modern Class A buildings in well-connected locations. As a result, average vacancy in the central business districts (CBDs) of the 13 cities monitored is 5.7%, compared with 12.2% outside them.

The same shift can be seen in rents. Prime rents in the main European markets rose by 6.2% year-on-year. Average effective rents rose by just 1.0%. In Prague, prime rents are €360 per m² per year according to BNP Paribas Real Estate, or approximately €30 per m² per month.

What this means for companies looking for offices

When modern offices are in short supply, tenants have less choice and weaker negotiating power. We recommend:

  • Start early. If your lease expires within the next 12–24 months, now is the time to map the market.
  • Compare lease renewal and relocation. In a market with low vacancy, renewing your lease on better terms may be more advantageous than relocating.
  • Consider locations outside the city centre. They work well where there is good transport accessibility and a high-quality surrounding environment. A lower price alone is not enough.
  • Monitor developments under construction. Leasing space in a building before completion (pre-lease) often means a wider choice.

Conclusion

Prague is one of the European markets with the lowest availability of vacant office space. For building owners, this means a stable market. For tenants, it means that good premises need to be identified earlier and with a clear brief.

Looking for offices in Prague or dealing with a lease renewal? The Office Agency 108 REAL ESTATE team will prepare an overview of available premises and a comparison of terms.

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