CEE-6 Office Marketbeat Q2 2026
Prague Leads CEE-6 Office Investment as Vacancy Stays Tightest
CEE-6 office investment activity picked up strongly in Q2 2026, with volumes reaching €1,057 million, up 81.9% quarter-on-quarter and 58.7% year-on-year. The Czech Republic led activity with €449 million, ahead of Poland's €346 million, while Slovakia posted the sharpest year-on-year increase. Occupier conditions across CEE-6 capitals remained predominantly landlord-favorable, with Prague among the markets where demand continued to outstrip supply for prime best-in-class space. Budapest stood out as the region's sole tenant-favorable market, while Bucharest sat in more neutral territory, broadly in balance between prime supply and demand.
New office completions across CEE-6 capitals remained historically low, at just 32,700 sq m in Q2 2026, while space under construction rose 13% year-on-year to 1,353,600 sq m, pointing to a rebuilding pipeline. Total CEE-6 office stock stood at 22,204,800 sq m, broadly unchanged on the quarter, with Prague's stock at 3,950,200 sq m. Gross take-up across the region reached 656,400 sq m, up 28% quarter-on-quarter, with Prague contributing 125,400 sq m to the quarter and 229,000 sq m year-to-date. Net absorption slowed to about 98,000 sq m, 33% below the Q1 level, with Budapest and Bratislava posting negative absorption.
The CEE-6 economic backdrop continued to improve in Q2 2026, with GDP growth accelerating from 2.0% to 2.5% and forecast to reach 2.6% in the second half of the year, supported by resilient domestic demand and a recovery in industrial production to 2.4% year-on-year. Inflation remained elevated at 4.4%, above central bank targets, continuing to constrain the pace of monetary easing. Prime office rents were broadly stable to rising across CEE-6 capitals, with Prague's rent unchanged for more than a year at €30.00 per sq m per month, the highest in the region, alongside stable pricing in Sofia.
Outlook
Vacancy across CEE-6 should continue to compress at the aggregate level through 2026, supported by historically low completions, with Prague's tight 5.8% vacancy likely to keep rental growth concentrated in the region's most constrained markets. Prime rents are expected to stay firmest where prime availability is scarcest, including Prague. Investment activity, led by the Czech Republic in Q2, should remain supported by continued industrial recovery and resilient labor market conditions, though elevated inflation may keep occupier decision-making measured through the remainder of 2026.
