The situation is not much better in other city districts either. The volume of vacant prime space has dropped year-on-year from 81,000 sq m to 49,000 sq m, the lowest level since 2020. In total – including lower-quality offices – only 259,000 sq m was immediately available across the capital in June, representing another 10% decline compared to the previous year.

“We are currently seeing steady demand for prime offices in the city centre and inner city. However, this demand increasingly has to focus on space that will only become available or enter the market in the coming years. New development is minimal, which continues to drive rents upward. We have been pointing to this scenario for some time, and now the long-term undersupply of new projects is fully manifesting,” says Pavel Novák, Head of Office Agency at Savills.

New supply only after several years – central Prague unlikely to see additional supply before 2028
An expansion of office supply in the city centre is not expected until planned projects are delivered, likely from 2028 onwards. Of the projects scheduled for delivery in the coming years, only about 25,000 sq m remains available. “Upcoming projects include HYBE at Masarykovo nádraží, Vydrovka at Florenc, or the reconstruction of Kotva. Although these projects are at different stages of preparation, we are already seeing interest from companies in the future space. Early engagement often means more favourable lease terms and the opportunity to secure the best locations within the building,” adds Pavel Novák.

Office buildings are an attractive investment asset
Given the lack of new development, the investment appeal of prime offices in central Prague continues to grow. David Štrouf, Investment Associate Director at Savills, notes: “There are currently several office buildings available on the market in the city centre – both newly built, technologically advanced properties and older assets with value-add potential through refurbishment or modernisation. With multiple transactions happening at the same time, investor attention is spread out and sale processes are somewhat less competitive than in the past. This is reflected in yield stability – prime yields for high-quality offices remain in the 5.2–5.3% range. Nevertheless, the shortage of new construction contributes to growing tenant demand, which in turn increases the value potential of these assets.”

Companies extend leases and adapt existing space – rising rents and quality demand are changing tenant strategies
The limited availability of new buildings is leading many companies to extend their current leases, even if the premises no longer fully meet their needs. In the first half of 2025 alone, nearly 14,000 sq m of leases were renewed in central Prague, representing almost half of gross take-up in the area.

The lack of new development is pushing rents higher while also giving landlords the opportunity to reinvest in their buildings and respond to tenants’ increasing requirements. Prime headline rents in central Prague have already exceeded €30/sq m/month and are expected to rise further in upcoming projects.

This increases the importance of refurbishing older office buildings, particularly those from the first wave of modern construction in the early 2000s. These properties are reaching the end of their lifecycle in terms of technology and fit-out, and without upgrades would no longer meet today’s standards. At the same time, companies place strong emphasis on operational stability and the certainty that no major works will take place during their lease term.

“The market is shifting from purely quantitative growth to qualitative transformation. With little new construction, tenants attach greater importance to the buildings they remain in. Owners who invest in modernisation will reap the benefits in the coming years,” concludes Pavel Novák of Savills.