OFFICE REAL ESTATE MARKET Q1/2025

Prague's office market entered 2025 with a persistent imbalance between supply and demand. Although the total office space in the metropolis reaches 3.96 million sqm, the vacancy rate has fallen slightly to 7.0%, further limiting the availability of quality space, especially for larger tenants. The situation is exacerbated by very low new construction - only 26,600 m² is scheduled for completion this year, with a significant portion of this space already pre-leased. Rents continue to rise across the market, most notably in the city centre, where they are reaching up to EUR 30/m²/month. In the outer locations, it ranges between EUR 15.50 and 16.50. Limited supply, subdued development activity and rising construction costs are contributing to the rising prices. The outlook for the rest of 2025 does not show a significant improvement. The combination of low construction, limited supply and sustained strong demand is keeping the market in landlord mode. As a result, tenants continue to face rising costs and an increasingly limited choice of available space.