The Prague modern office market entered 2026 in a structurally tight position. Vacancy rates have fallen year-on-year, deliveries of new space will be well below the long-term average this year, and more than half of demand is accounted for by renegotiations of existing contracts. What does this mean for companies that have, are looking for, or are leasing office space?
The optimistic mood prevails after the recent elections and the change of political situation in the industrial real estate market in Hungary. While the Czech Republic is often compared to Poland, Hungary is building its own position thanks to the automotive industry. According to real estate consultancy 108 REAL ESTATE, which has a presence in Budapest, the supply of modern warehouses and manufacturing space is expected to continue to grow, stimulated by the expected rising demand. The main reason for this is the multiplier effect of the major automotive brands already present on the Hungarian market. The vision of economic growth, expressed among other things by the new government's desire to adopt the euro as soon as possible, is also playing a role.
Domestic industrial hall leases in the Czech Republic have a number of specificities in the Central European context. But one parameter stands out above the rest: over the last three years, the logistics segment has outnumbered manufacturing in concluded lease transactions. And by a large margin. According to real estate consultancy 108 REAL ESTATE, over 550,000 sqm of industrial space was leased to manufacturing or processing companies in the whole of 2025. This was a 42% share of the total volume of transactions. Logistics-related tenants accounted for 33.85% of the total, while the remaining 24% belonged to retail, services and others. In total, approximately 1.3 million sqm of new industrial properties were occupied by new tenants in 2025.
