The total office stock across Prague, Warsaw, Budapest, Bucharest, Bratislava and Sofia has reached 22.1 million sqm by the end of 2025. However, new completions fell to just over 200,000 sqm during the year – the lowest annual volume recorded in the region. Only around 300,000 sqm is expected in 2026, below long-term averages.
Across the region, rising construction costs, stricter financing requirements and developer caution have reduced speculative development. New projects increasingly require pre-leasing commitments, while mixed-use schemes are becoming the preferred model. "The CEE office market is not facing a downturn; it is undergoing a structural evolution. The combination of limited new supply, higher development costs and changing tenant expectations is creating a more selective market," said Josef Stanko, Head of Research at Colliers Czechia.
Average vacancy across the CEE-6 markets declined to around 10.5% by the end of 2025, with Prague the tightest at less than 6%. Leasing activity reached 2.63 million sqm during the year, supported by renewals and relocations into better premises. Prime rents rose across all six capitals, ranging from around €16 per sqm per month in Sofia to around €30 per sqm in Prague. Vacancy in high-quality, central buildings is lower than market averages, while older assets struggle to compete, leaving large occupiers with fewer suitable options.
The report highlights a shift in occupier demand. Technology and outsourcing sectors are no longer the primary drivers of take-up in several markets. Financial services, professional services and knowledge-intensive functions account for a growing share of activity. In Budapest, the expansion of R&D, technology, engineering and innovation-led business services is further supporting demand. Meanwhile, many properties delivered during the late 1990s and early 2000s are approaching 20 years of age and face pressure to meet modern technical and environmental standards. Refurbishments in Prague and Warsaw have delivered rental growth and improved occupancy, though not all buildings are suitable, prompting owners to consider residential, hotel and data centre conversions.
Looking ahead, Colliers expects supply to remain constrained, supporting rental growth and tightening in prime segments. Sustainability requirements and regulatory changes are likely to accelerate decisions around older assets. "The gap between buildings that meet modern occupier expectations and those that do not will continue to widen. The most successful landlords and investors will be those who actively adapt their assets and strategies," said Jana Vlková, Head of Workplace Advisory and Office Agency at Colliers Czech Republic.
