Czech commercial property developers are facing increasing pressure. The cost of euro loans has skyrocketed due to geopolitical tensions in the Middle East - while crown loans have risen by around a fifth, euro loans are already almost a quarter more expensive. And it is in euros that the financing and sales of commercial development are largely denominated.
The transformation of the Masaryk Station area continues. Penta has obtained a building permit for a new multifunctional building in Hybernská Street, on the site of the former post office adjacent to Masaryk Square. The project, internally named Hybe, will complement the already completed Florentinum, Masarycka and Cloud One hotel buildings.
One of the most talked about places in the centre of Prague is finally coming to life. On the site of the former brutalist Transgas complex near the Museum, a modern multifunctional building is being built - the Vinohradská 8 project, which will bring new boutique offices, apartments and a commercial parterre to the prestigious location on the border of Prague 1 and 2.
Office leasing volume in 18 major European markets totaled 1.67 million m² in the first quarter of 2026, down 16% year-over-year and by the same percentage below the five-year average. The main reason is a slowdown in large transactions; amid economic uncertainty, tenants are opting for smaller, high-quality spaces.
The decision to lease office space is not just a matter of price per square foot. In companies with over 100 employees, office location determines access to talent, brand perception and day-to-day productivity. Smíchov and the wider Prague 5 area are undergoing a transformation that is changing these factors in favour of tenants.
Prague 5 - Smíchov is undergoing the biggest transformation of all Prague districts. Extensive construction of new office campuses and complete modernization of transport infrastructure are turning this location into one of the most sought-after addresses for office space in Prague.
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The most desirable office address in Prague? According to real estate consultancy 108 REAL ESTATE, it is definitely Karlín. Pankrác and, thanks to the capitalized development potential, also Smíchov are close behind. In Karlín and its vicinity, there is such an interest in offices that several companies often compete for less attractive spaces - including former shops or re-leased flats. Almost immediately, and often at higher rents, space in modern class A office buildings is being leased, especially in the case of large-volume space exceeding 1,500 sqm. There is also considerable interest in new construction taking place in the area near Rohanské nábřeží
The area around Masaryk railway station, the area of Smíchov up to Stodůlek or modern office buildings in Karlín and Hagibór. And Prague 4. These are the most frequent preferences of companies currently looking for new offices in the metropolis. Demand is concentrated on locations where the tradition on the office space market is linked to the construction of modern office buildings. Other city districts or specific locations remain in the background, even with regard to the limited supply of modern working space. According to the real estate consultancy 108 REAL ESTATE, it can even be said that sufficient capacity is currently as important as the reputation of the address and availability for employees.
