Market Report H1 2025

Real Estate Certainty in an Uncertain World

Prokop Svoboda

Owner of Svoboda & Williams

In keeping with tradition, Svoboda & Williams is publishing its freshly completed analysis of the preceding half-year in the premium real estate market just in time for the summer vacation. We began 2025 in full force—the long-delayed demand, falling mortgage rates, and thirst to find bargain deals ahead of the expected rise in prices created a buying hype at the start of the year. Massive buyer-side interest subsequently translated into a significant year-on-year price growth.

Although the market tempo quieted down after a turbulent January, prices continue to increase at a stable rate. This can also be seen in the valuation of new residential projects, which continues to reflect people’s confidence in the long-term potential of an unsaturated market, especially in large cities. Prague, Brno, and Ostrava absorb quality listings without batting an eye, but the situation is different in the countryside and outlying regions. The recreational property market, especially in overdeveloped mountain locations, is now stagnant. After the pandemic boom in interest in these properties, demand has decreased sharply and supply now far exceeds buyers’ interest.

Czech capital, on the other hand, is increasingly and confidently looking beyond its borders. As partners of Christie's International Real Estate, one of the leaders in the global market, we want to provide our clients with attractive investment opportunities abroad as well. And so we recently hired someone with extensive experience in the international real estate business. In addition to traditional beach destinations, we currently see a high potential in the German market, which is attractive due to its geographical proximity, long-term excellent performance, and temporary price correction.

At the same time, we’re observing with interest the growing focus of foreign investors on the Czech market. Compared to the previous period, in the past six months 14% of all achieved transactions were by foreigners living in the Czech Republic. A significant share of this increase is due to Slovak capital, which is entering the Czech market with increasing momentum. In summary, today’s world is a fluctuating space full of uncertainty and geopolitical changes. But what hasn’t changed is the fact that premium real estate has maintained its role as a stable and rational investment pillar.

SAMPLE OF PROPERTIES MONITORED BY SVOBODA & WILLIAMS

1/2025–6/2025 vs. 7/2024–12/2024

  • CZK 179,891

    New builds and reconstructions, Ø per sq. m.

    Half-year change +7.2%

  • CZK 160,174

    Resales, Ø per sq. m.

    Half-year change +2.0%

  • CZK 40,887

    Rent per the Rental Price Index, per month

    Half-year change +2.0%

  • DECLINE IN INQUIRIES

    Half-year change

    H1 2025 vs. H2 2024 -3.5%

TRENDS IN PRAGUE’S PREMIUM PROPERTY MARKET

Based on the sample monitored by Svoboda & Williams

Sales

As expected, compared to last year the market calmed down and stabilized. The buying fever that gripped us at the end of the previous half year abated, and the slight drop in demand (down by 3.5%) is gradually expanding the housing stock.

The continuing positive market situation caused prices to rise. These increased by 3.8% in the half-year comparison and 9.5% year-on-year. The higher growth at the midpoint of the year was due to the market’s strong recovery, which could still be felt in January 2025. The rest of the half-year then rode this wave.

The increase in the average price per m² was mainly driven by sales of new builds—developers projected last year’s market values in their price lists.

This is the second half-year in a row to see a decrease in the average size of the apartments sold, which is another factor in the increasing average price per m². Premium properties are now smaller and more expensive.

The average values of the apartments sold in the sample monitored by Svoboda & Williams in all of Prague’s municipal districts exceeded CZK 10 million.

Foreign capital is returning to the Czech market once again. The share of foreigners versus local buyers in the half-year comparison increased by 14%.

Thanks to more favorable interest rates, we saw a half-year increase of 6% in clients buying properties on a mortgage and we expect interest rates to come down even further.

Rentals

We’ve been observing a subtle, but stable growth in prices for several half-years now. Currently, rental housing prices increased by 2% in both the half-year and year-on-year comparison.

The new development of rental housing projects and the wider stock of quality apartments outside of the center of Prague caused an outflow of demand for rentals to the more peripheral parts of the city. We’ve been seeing this trend developing for some time now. If we look back to 10 years ago, transactions in the city center took up 45% of the market, while in the last half-year this number has gone down to 24%.

This outflow of demand from the center has put pressure on the growth of prices in the more far-flung parts of the city, locations we categorize as “the rest of Prague,” across all layout types.

In some cases, average rent prices in the municipal parts of Prague 3, Prague 6, and Prague 8, for example, have surpassed those in Prague 1. 

In the last half-year, interest in four-bedroom apartments decreased, making the average price of this spacious layout come down.

In the sample of properties we monitor, foreigners continue to constitute the majority of tenants—currently 67%.

Price Analysis

The Prague residential market through the lens of Svoboda & Williams during the monitored period 1/2025–6/2025. The analysis is based on actually achieved sales transaction values.

Methodology of Data Processing

The analysis is based on data obtained from the database of properties offered by Svoboda & Williams during the monitored period (January 2025–June 2025). Sales transactions were supplemented with data on sales of new builds with parameters that match Svoboda & Williams’ portfolio (in this case, the achieved prices were obtained from the Cadastre of Real Estate). The sample monitored by Svoboda & Williams contains nearly 250 sold and 500 rented properties over a 6-month period and therefore covers a significant portion of the premium segment of the Prague residential market. 

The monitored properties are apartments in Prague 1–10; other municipal districts are minimally represented. Within each district, most of the properties in the sample are in premium locations with higher achieved prices such as Bubeneč, Dejvice, Střešovice, and Břevnov in Prague 6, Pankrác, Vyšehrad, and Podolí in Prague 4, Karlín and parts of Libeň in Prague 8, Smíchov in Prague 5, etc. The monitored property prices and rents are actually achieved transactions; we don’t monitor advertised prices. To calculate the price per sq. m., we take into account the price for parking spaces, which we deduct from the achieved sales price and we also include a proportional part of the exterior (terraces, balconies, loggias, and gardens) in the floor area of the apartment (according to the Civil Code). To recalculate the exterior area, we apply a specially developed algorithm that progressively reduces this area and takes into account the ratio of the exterior to the interior area. Average prices are calculated from the transactions finalized over the last 6 months (1/2025–6/2025); percentage changes are half year (1/2025–6/2025 vs. 7/2024–12/2024). For sales, we also determine the price per sq. m. for two categories: new builds (new apartments in residential projects, completely reconstructed apartment buildings, or loft conversions) and resales (secondhand apartments). The prices of new apartments in residential developments are listed including VAT. In order to be able to compare the prices per sq. m. for all apartments, we unified the stage of construction progress for several units using an average assumption of CZK 50,000/sq. m. for the stage prior to reconstruction (shell & core) and CZK 20,000/sq. m. for the stage before the completion of surfaces (white walls). We don’t monitor the price per sq. m. for rentals. While the price per sq. m. is relevant for sales, for rentals the price is determined mainly by layout in addition to location. For example, a one-bedroom apartment with a 50 sq. m. floor area is normally rented for the same price as an apartment with the same layout with a floor area of 60 sq. m., whereas the purchase price of a larger apartment can be up to 15 to 20% higher. Therefore, in our analyses of residential rentals we work with the total rent, and not with the price per sq. m. For a better picture, we also state the achieved price for the most frequent layouts in the sales and rental transactions realized by Svoboda & Williams, i.e., one-bedroom and two-bedroom apartments. 

Data analysis

Methodology of Svoboda & Williams

Ne

Listed price

Ano

Achieved price

Price per sq. m =
Achieved sales price - price of parking Apartment area + proportional part of the exterior (b/t/g)

Algorithm for conversion of the exterior

The area of a terrace that exceeds 30% of the interior is divided by two.

The analysis is based on data obtained from the database of properties offered by Svoboda & Williams in the monitored period. We supplement the sales transactions with sales data from the land register with similar parameters to our sample. We monitor the value of achieved transactions, not offer prices.

The selected methodology is one of the most precise analytical tools on the market. To calculate the price per sq. m., we take into account the ratio of the exterior to the interior, the standard of the property's facilities, and the price for parking is deducted from the achieved sales price. Additional information can be found in the Data Processing Methodology section.

OVERALL SUMMARY

during the monitored period 1/2025–6/2025

Average prices during the monitored period (1/2025–6/2025) and their half-year change (compared to 7/2024–12/2024)

Ø Apt. price* Ø Price per sq. m. Ø Apt. size Ø Price per sq. m.
New apt.** Resale apt.
Sales CZK 13,149,647 CZK 171,304 76.8 sq. m. CZK 179,891 CZK 160,174
-1.6% 3.8% -5.3% 7.2% 2.0%
Rentals CZK 40,887 N/A 88.5 sq. m. N/A N/A
2.0% N/A 0.3% N/A N/A

Source: data of Svoboda & Williams | *all layouts | **new builds and reconstructions

Average achieved rents vs. sales prices for specific layouts in Prague 1–10 in the monitored period (1/2025–6/2025)

Layout Ø Monthly rent Rentals Ø apt. floor space Ø Selling price Sales Ø apt. floor space
studio CZK 21,569 38.0 sq. m. CZK 6,862,044 37.3 sq. m.
1bdrm CZK 32,315 66.4 sq. m. CZK 10,175,419 59.7 sq. m.
2bdrm CZK 45,912 101.7 sq. m. CZK 17,107,273 99.5 sq. m.
3bdrm CZK 67,208 143.4 sq. m. CZK 23,666,603 139.5 sq. m.
4bdrm CZK 72,833 177.5 sq. m. CZK 48,026,914 224.6 sq. m.

Source: data of Svoboda & Williams

SALE

Average achieved rents vs. sales prices for specific layouts in Prague 1-10 (1/2025–6/2025)

Municipal district Ø Apt. price Ø Price per sq. m. Ø Apt. size
Prague 1 CZK 29,274,444 CZK 234,014 125.1 sq. m.
Prague 2 CZK 14,631,025 CZK 188,746 77.5 sq. m.
Prague 3 CZK 10,691,591 CZK 167,450 63.8 sq. m.
Prague 4 CZK 10,421,951 CZK 168,515 61.8 sq. m.
Prague 5 CZK 12,382,504 CZK 158,903 77.9 sq. m.
Prague 6 CZK 14,609,536 CZK 183,794 79.5 sq. m.
Prague 7 CZK 12,931,173 CZK 161,535 80.1 sq. m.
Prague 8 CZK 17,344,069 CZK 169,316 102.4 sq. m.
Prague 9 CZK 13,456,667 CZK 140,261 95.9 sq. m.
Prague 10 CZK 10,325,337 CZK 154,681 66.8 sq. m.

Source: data of Svoboda & Williams

Development of the average achieved sales price per sq. m. in the segment monitored by Svoboda & Williams (in CZK)

Buyer Segmentation

Ratio of Czech and foreign buyers

67% Czechs
33% Foreigners

Financing the purchase of property

62% Own funds
38% Mortgage loans

Sales per layout

13.9% studio
36.1% 1bdrm
31.1% 2bdrm
14.8% 3bdrm
4.1% 4bdrm and larger

RENTALS

Overall summary of average achieved rental prices in municipal districts (1/2025–6/2025)

Municipal district Ø Monthly rent Ø Apt. floor space Ø Monthly rent 1bdrm Ø Monthly rent 2bdrm
Prague 1 CZK 46,429 106.9 sq. m. CZK 37,906 CZK 45,711
Prague 2 CZK 44,149 99.7 sq. m. CZK 31,394 CZK 44,021
Prague 3 CZK 38,169 77.7 sq. m. CZK 29,969 CZK 49,765
Prague 4 CZK 34,915 87.3 sq. m. CZK 29,130 CZK 39,822
Prague 5 CZK 39,705 84.7 sq. m. CZK 32,899 CZK 42,312
Prague 6 CZK 42,529 89.9 sq. m. CZK 31,338 CZK 46,818
Prague 7 CZK 32,733 74.7 sq. m. CZK 30,062 CZK 37,360
Prague 8 CZK 45,300 77.2 sq. m. CZK 36,622 CZK 53,914
Prague 9 CZK 31,783 73.0 sq. m. CZK 27,100 CZK 42,500
Prague 10 CZK 37,035 87.5 sq. m. CZK 29,767 CZK 43,500

Source: data of Svoboda & Williams

Tenant Segmentation

Ratio of Czech and foreign clients inquiring about a property

50% Czechs
50% Foreigners

Ratio of clients who rented a property

33% Czechs
67% Foreigners

Rents per layout

12.5% studio
39.5% 1bdrm
31.1% 2bdrm
14.5% 3bdrm
2.5% 4bdrm and larger

Overview of rental price segments–rental inquiries vs. realised rental transactions

Price segments Inquiries - Czechs Inquiries - Foreigners Realized rental transactions - Czechs Realized rental transactions - Foreigners
CZK < 30 thous. 47% 53% 37% 63%
CZK 30-60 thous. 54% 46% 34% 66%
CZK > 60 thous. 49% 51% 20% 80%
Total 50% 50% 33% 67%

Source: data of Svoboda & Williams

Rental price index

An analytical tool developed in cooperation with the University of Economics in Prague that provides a more detailed view of the change in the prices.

METHODOLOGY OF DATA PROCESSING

WHAT IS THE RENTAL PRICE INDEX BY SVOBODA & WILLIAMS + VŠE?

The Rental Price Index by S&W + VŠE is an analytical tool that monitors the growth of rental prices in the premium segment in Prague developed by the Svoboda & Williams real estate agency in cooperation with the Faculty of Informatics and Statistics of the University of Economics in Prague. The data is sourced from the actually achieved rents of the apartments that were listed by Svoboda & Williams. Annually, it amounts to 1,200 properties in the territory of Prague 1–10 with studio to 5-bedroom layouts. Since the properties exhibit a high level heterogeneity, we apply an aggregate price index to the development of their prices. It works just like the Consumer Price Index maintained by the Czech Statistical Office, which measures inflation.


WHY SIMPLY COMPARING THE AVERAGE PRICE DEVELOPMENT IS NOT ENOUGH?

The development of average rental prices doesn’t correctly reflect the actual change in prices. This is because the average rent is influenced not only by fluctuations in prices, but also by a changed product structure. Let’s give an example. In two monitored periods, a sample of apartments including luxury apartments in the center of Prague and cheaper apartments in the broader center have been rented. The prices of both the cheaper and the luxury apartments in the second period remain equal, but more of the expensive units have been rented. This will raise average rents, but the price index will remain the same. The aggregate price index is based on the assumption of the fixed presence of rental segments in the portfolio and therefore reflects the change in price, which is “cleaned” of the change in the rental structure. The index is calculated as a weighted average of the price changes in the individual segments, where the weights are their representation in the portfolio (structure) in the selected fixed period.


CONSTRUCTION OF THE RENTAL PRICE INDEX BY SVOBODA & WILLIAMS + VŠE



Selection of segments

The segmentation made sure that the apartments in the same group were as similar as possible and, on the other hand, that the groups were as different as possible. At the same time, each group had to contain a sufficient amount of data. Within the statistical analysis, the impact of many factors on rental prices was examined. These parameters included the specific layout of an apartment, its location, floor, and whether it came with a terrace, balcony, or loggia, or the option to rent a parking space. The analysis proved that rents were most affected by the location and layout of the apartment, and therefore we performed the segmentation based on these two factors.

Based on our expertise and the data analysis of rental prices, we divided Prague into three locations—the center, the wider center, and the rest of Prague (see map above).

Apartment layouts were chosen as the second factor. Based on the location and the layout we defined 9 segments in total: studio to one-bedroom, two-bedroom, and three-bedroom and larger in the Center, Wider center, and Rest of Prague.


Selection of weights

We assigned weights to the individual segments on the basis of the structure of the apartments rented during the calendar year of 2016. The weight of a segment in the price index is calculated as a proportion of the total rent in the relevant segment to the total rent for all segments brokered in 2016. 

The index is compiled on a biannual basis to ensure that a sufficient number of observations could be made. In practice, biannual indexes aren’t as common as monthly or quarterly indexes, but they’re by no means exceptional. For example, the United States Department of Labor uses one to construct the consumer price index.


We calculate two kinds of indexes

A year-on-year index  – monitors the rental price changes between the current half-year period and the previous half-year period (e.g. H1 2025 vs. H2 2024)

A base index – monitors the rental price changes between the current and the so-called base period. A stable period considered a long-term “normal” default should be selected as a base period, in our case H1 2015.

The source of the data is the actual rental prices achieved by Svoboda & Williams, constituting approximately 1,200 properties per year in Prague 1–10 with layouts ranging from studios to 5-bedrooms. Since these prices vary widely, we apply an aggregate price index to their development over time. It works similarly to the consumer price index of the Czech Statistical Office.

ACHIEVED RENTS FOR PREMIUM APARTMENTS IN PRAGUE

H1 2025 (January 2025–June 2025)

CZK 40,887

Average achieved rents in the monitored period (January 2025–June 2025) in Prague

+2.0%

Change in the semi-annual index compared to the previous period (July 2024–December 2024)

The Rental Price Index tracks the change in the average achieved rental price for an apartment in Prague offered by Svoboda & Williams for the monitored period (January 2025–June 2025) compared to the second half of the previous year (July 2024–December 2024). This is an aggregate price index, which is calculated as a weighted average of changes in rental prices for individual apartment categories.

Development of achieved rents for apartments in the segment monitored by Svoboda & Williams (2015 H1 = 100).

Achieved apartment rents in H1 2025 per segment and half-year changes

Segment Center Wider center Rest of Prague
Studio to 1bdrm CZK 31,488 7.0% CZK 29,279 2.7% CZK 26,190 14.2%
2bdrm CZK 44,414 -3.6% CZK 47,046 2.2% CZK 37,463 20.1%
3bdrm and larger CZK 70,393 -3.3% CZK 72,628 0.6% CZK 50,864 8.4%

Source: data of Svoboda & Williams

Relative representation in the portfolio

Segment Center Wider center Rest of Prague
Studio to 1bdrm 9.7% 35.0% 7.4%
2bdrm 8.3% 18.8% 3.7%
3bdrm and larger 6.5% 8.1% 2.5%

Note. Apartments with 6-bedroom layouts and larger are represented too sparsely and are not included in the analysis.

Prague 1 Prague 2 Prague 6 Prague 5 Prague 4 Prague 3 Prague 7 Prague 8 Prague 9 Prague 10
  • Center
  • Wider center
  • Rest of Prague

Prague Office Market

H1 2025

Current trends in the commercial leasing market

3.96 mil. sq. m.

Total volume of office space in Prague

7.0%

Vacancy rate

EUR 30 sq. m./month

Prime rent in the city center

Prague’s office space market lacked a sufficient number of quality new buildings in the first half of 2025. This is due to the limited construction of office buildings—this year only the first phase of a single project, i.e. E Factory in Prague 9 (8,700 m² in total), was approved. Plus, most of the projects under construction won’t be completed until 2027. The low supply, coupled with the growing demand for offices, especially in the narrower city center of Prague, means that developers are able to secure 100% pre-leasing before a project is even completed.

In light of these factors, we expect rents in office buildings in the center of Prague to increase even more. In fact, we’ve already recorded asking rents of over EUR 30/m²/month in new premium projects. Rents in older buildings (15–20 years old) in the wider center and outskirts of Prague remain at pre-pandemic levels. Owners therefore should focus on making their buildings more attractive, either through structural alterations or more significant incentives for tenants. The Isola project by Generali in Pankrác is one such successful example. Given the long-term shortage of residential housing in Prague, we expect some owners to convert older office buildings into residential ones, as is happening in other parts of Europe.

Svoboda & Williams’ consultants succeed in establishing exclusive cooperation agreements with owners of trophy office buildings in the city center, where a significant portion of the demand is concentrated. In Prague 1, this includes a long-standing cooperation with VIG FUND, the successful lease of the historic Celetná 30 building to a single tenant, exclusive representation in the lease of the reconstructed Husova 13 and Ovocný trh 2 buildings, or cooperation with MOF Real Estate on the projects Thámova 16 and 18 in Karlín.



Jaroslav Waldhauser 
Head of Commercial Leasing at Svoboda & Williams 

TOTAL VOLUME OF FLEXIBLE OFFICE SPACE IN PRAGUE

145,801 sq. m.

The first half of 2025 saw a significant growth in Prague’s shared office market—a space gain of 12,270 m2, surpassing not only the second half of 2024, but also the entire year. Flexible offices continue to occupy a growing role in the city’s office ecosystem.

Scott.Weber Workspace remains the driver of the local market. In June, it opened its 18th branch—the Idea Hub in the Idea Office Building in Prague’s Anděl district, with an event space of 4,100 m2. The company is also preparing to open their largest Prague branch in the Neo-Baroque Republic Square 7 building this summer. Other players are also expanding their portfolio. The Czech WorkLounge company opened its seventh branch in February in Dejvice, Prague, with an area of 1,540 m².

Flexible offices now take up significant space in the portfolio of large companies looking for the efficient use of space and support for hybrid working models for their multi-generational and culturally diverse teams. Companies appreciate the ability to work without long-term commitments and to use a wide range of services according to their current needs. There is also a growing emphasis on diverse work environments, community benefits, and technological amenities. Traditional offices are often left holding the bag—half of their spaces go unused, while employees lack quality places to focus, collaborate, and relax.



PRAGUE'S SHARED OFFICE MARKET

Percent of operators' market share

SHARED OFFICE MARKET IN PRAGUE

Ratio of local to international providers

73.68% Local
26.32% International
  • Local: Offices Unlimited, Scott.Weber, Fleksi, Flexi Offices, Impact Hub, Opero, WorkLounge, Mo-Cha, Zenwork, Business Centrum Smíchov
  • International: IWG (Spaces + Regus), WeWork, mycowork Palmovka