CEE-6 OFFICE MARKET Q4 2025
CEE Office Market Overview: Limited Supply Supports Vacancy Compression and Prime Rental Growth
The Central and Eastern Europe office market ended 2025 on a stable footing, with occupier conditions supported by improving economic momentum across the region. GDP growth in the CEE-6 outpaced the Eurozone, while unemployment remained low, helping sustain business confidence even as inflation stayed elevated and corporate expansion remained selective.
Supply was the defining factor across the office market in 2025. Total office stock across the six capitals reached just over 22.1 million sq m, while new completions fell to 201,100 sq m, the lowest annual delivery volume on record. That shortage of new product continued to tighten market conditions and pushed average vacancy down to around 10.5%. Prague remained the tightest market, while Bratislava recorded the highest vacancy rate among the CEE-6 capitals. Although the development pipeline is rebuilding from a low base, future deliveries are still being shaped by construction costs, financing discipline, pre-leasing requirements, and continued preference for prime product.
Demand remained resilient despite a cautious occupier backdrop. Quarterly gross take-up reached 921,000 sq m in Q4, setting a new high for the period, while full-year leasing volume held broadly steady at 2.63 million sq m. Activity was led by renewals, selective relocations, and targeted expansions into better-quality space. Across the region, occupiers continued to prioritize operational efficiency, flexibility, and building quality, with the strongest interest focused on modern Class A offices in central and well-connected locations.
Rental performance was firm throughout the quarter. Prime rents held steady or increased in several markets, supported by tighter availability and limited new supply. The strongest rental pressure remained concentrated in top-quality, modern and ESG-compliant buildings, while secondary offices faced more competitive pressure and greater need for incentives, refurbishment, or repositioning.
Outlook
- Supply Discipline: Limited completions should continue to support lower vacancy across much of the CEE office market in the near term, even as the construction pipeline gradually rebuilds.
- Quality-Led Demand: Occupier demand is expected to remain stable, with ongoing focus on renewals, efficiency, and upgrades into modern office space that supports workplace quality and sustainability goals.
- Prime Rental Resilience: Prime rents should remain resilient, especially in central locations and best-in-class buildings, while secondary stock is likely to face continued competitive pressure.
