Prague is poised for a significant addition to its skyline as Skanska, a leading construction and development company, prepares to begin building its largest-ever office complex in the city. The project, tentatively named “Key,” will be located on vacant land between Sdružení and 5. Května streets, near the Pankrác metro station, and represents a substantial investment in Prague’s commercial real estate market.
The decision to move forward with the project comes as demand for prime office space in Prague continues to outstrip supply, particularly for larger companies seeking to relocate or expand. According to Tomáš Fabian, Skanska Commercial Development Europe’s executive vice president for operations and legal affairs, the company aims to begin construction this year without securing any pre-lease agreements. This demonstrates a strong level of confidence in the project’s appeal and the overall health of the Prague office market.
“Our main priority for this year is to start the project in Pankrác,” Fabian told Hospodářské noviny (HN.cz) on February 27, 2026. “Specifically, it will be a pair of office buildings with the working name Key on vacant parcels between Sdružení and 5. Května streets.” He further stated that the investment will exceed that of the Port7 complex in Holešovice, though the exact figure remains undisclosed, falling into the lower billions of Czech crowns.
Addressing Accessibility and Community Needs
Skanska’s plans extend beyond simply adding office space to the city. The development will include a pedestrian underpass connecting to the Pankrác metro station, aiming to improve accessibility for commuters and residents alike. The ground floor of the buildings will be dedicated to retail spaces, intended to serve both office workers and the surrounding community. This mixed-use approach reflects a growing trend in urban development, prioritizing convenience and integration with the existing neighborhood.
A Growing Trend in Prague’s Commercial Real Estate
Skanska isn’t alone in its investment in Prague’s commercial real estate. The company joins Generali Real Estate and Passerinvest Group, who initiated construction projects in Prague 4 and 11 last year. This wave of development signals a renewed confidence in the city’s economic prospects and a recognition of the increasing demand for modern office facilities. The limited availability of vacant office space in desirable locations is clearly driving developers to take on larger and more ambitious projects.
The Key complex is planned to offer over 36,000 square meters of primarily office space, with a smaller portion allocated to retail. This substantial size underscores Skanska’s commitment to meeting the needs of large corporations seeking a significant presence in Prague. The project is expected to create numerous jobs during both the construction phase and once the buildings are operational.
Skanska’s Continued Investment in the Czech Republic
This project builds on Skanska’s existing portfolio in the Czech Republic. The company has a long history of developing high-quality commercial and residential properties in the country, and the Key complex represents a significant step forward in its expansion plans. Skanska’s website provides an archive of press releases detailing their projects and activities.
The Broader Context of Prague’s Office Market
The construction of the Key complex occurs against a backdrop of a generally slowing construction market for offices in Prague, while industrial and logistics halls are experiencing a boom. Hospodářské noviny reported in December 2025 that the construction of office spaces in Prague is stagnating, while the construction of industrial and logistics halls in the Czech Republic is reaching its peak.
Skanska’s decision to proceed with the Key project despite this trend suggests a belief that there remains a strong demand for high-quality office space in prime locations. The company’s willingness to begin construction without pre-lease agreements further demonstrates its confidence in the project’s long-term viability.
The next step for Skanska is the official commencement of construction on the Key complex. While a specific start date hasn’t been announced, the company’s stated goal is to begin work this year. Further updates on the project’s progress will likely be available through Skanska’s official channels and in reports from Hospodářské noviny.
What are your thoughts on the modern Skanska development? Share your comments below and let us know how you think this project will impact Prague’s business landscape.
