Market Report H2 2025

The Market Is Still Seeking Its New Normal, but from Investors’ Perspectives Housing Is Still Affordable

Prokop Svoboda

Owner of Svoboda & Williams

With the new year, we once again bring you our traditional analysis of the past several months in the real estate market. In the second half of last year, we continued to see a growth in property prices, although the volume of sales decreased compared to the first half of the year. This shows that the premium residential real estate segment remains healthy and the market thankfully isn’t overheating.

Czechs traditionally see real estate as a guaranteed investment and one of the pillars of security in their retirement income. This is a step in the right direction, which is why I continue to be surprised by how few investors can correctly calculate the return on equity when purchasing real estate. In fact, even a small-scale investor with a modest residential portfolio can behave like a large investment fund through the ongoing refinancing of mortgage loans.

This investment perspective thus disrupts the often-repeated media narrative that real estate in the Czech Republic is unaffordable. Financial services are directly linked to the growing real estate market and are fundamental and essential for a significant proportion of buyers. Disruption of this delicate ecosystem, for example through a correction in real estate prices, would significantly reduce banks’ willingness to provide mortgages. Paradoxically, a decline in apartment prices wouldn’t help solve the housing situation, but would further increase the unavailability of housing.

Systemic measures that could reduce housing unavailability include opening up the rental market to pension funds, something the government approved last year, and involving European funds in the construction of municipal rental housing. The first projects from Česká spořitelna’s portfolio (DBČS) indicate a trend that should last. At Svoboda & Williams, we’re seeing a heightened interest in rental project development. In the medium term, this could add thousands of new units to the market, and an increased supply is the most effective tool for truly improving housing affordability. For many, however, this will mean overcoming a mental barrier—in the most sought-after locations, the main focus won’t be on owner-occupied housing, but on rental housing.

Attractive opportunities are also available to small investors who can’t afford premium assets in Prague. At Svoboda & Williams, we’ve observed that, along with purchasing power, demand for high-quality residential projects is also growing in the country’s regions, whether in the West Bohemian spa triangle, the greater Ostrava area, or other locations with strong development potential. Expansion outside of the capital city will therefore be one of the main themes for our company this year. In addition to our existing branches in Brno and Ostrava, our plan is to open branches in Karlovy Vary and České Budějovice.

SAMPLE OF PROPERTIES MONITORED BY SVOBODA & WILLIAMS

7/2025–12/2025 vs. 1/2025–6/2025

  • CZK 186,647

    New builds and reconstructions, Ø per sq. m.

    Half-year change +3.8%

  • CZK 165,691

    Resales, Ø per sq. m.

    Half-year change +3.4%

  • CZK 40,440

    Average achieved rent for residential units per the Rental Price Index

    Half-year change -1.1%

  • INCREASE IN INQUIRIES

    Half-year change

    H2 2025 vs. H1 2025 +10.8%

TRENDS IN PRAGUE’S PREMIUM PROPERTY MARKET

Based on the sample monitored by Svoboda & Williams

Sales

Real estate prices are seeking a new normal. Growth is evident in both resale properties and new builds. In the sample monitored by Svoboda & Williams, the average price per square meter increased by 3.7% between the first and second half of the year (H2 2025 vs. H1 2025) and by 7.6 % in the year-on-year comparison (H2 2025 vs. H2 2024). At the same time, we’ve been seeing real estate floor spaces decrease for the third consecutive half-year.

After the dynamic period experienced at the turn of 2024/2025, in the past six months the growth in prices has slowed down, especially for new builds, the prices of which only increased by 3.8% in the last half-year. This reflects the natural development of a healthy market, where a phase of significant price growth is followed by short-term consolidation without any signs of weakening demand.

Demand for residential properties increased by 10.8% in the last half-year. 

A total of 54% of our clients financed the purchase of real estate with a mortgage. After a pause of five years, the proportion of buyers using mortgage financing once again exceeded that of clients who bought real estate exclusively from their own resources.

Buyers have adapted to the current interest rates—the prevailing expectation is that they won’t decrease significantly in the near future. According to data from the Czech Banking Association, the total volume of new mortgage loans increased by 41% in 2025 compared to 2024. 

In addition to traditionally sought-after locations (Vinohrady, Holešovice, Smíchov, Žižkov), there is noticeable interest in the growing supply of high-quality residential projects in other parts of the wider city center (Košíře, Vršovice, and Radlice).

Prague 2 became the first of the city’s districts to exceed CZK 200,000/m² in the average realized price.  

In terms of total transactions, Czechs still make up the majority of buyers, i.e. 75%.



Rentals

The structure of the Prague rental market is changing. The stock of smaller apartments has been growing for a long time, which may be related to tenants’ cost-saving behavior or developers’ preference for more efficient and affordable units. The rental market is also influenced by the increase in single-person households.

According to Svoboda & Williams’ data, the average size of rental apartments went down in the second half of the year. The smallest apartment segment (studios and one-bedrooms) constituted up to 59% of all rented apartments in Prague. Three years ago, this figure was about 45% and ten years ago small-size apartments were only 35–40% of the rental market. 

Due to higher demand and a wider range of smaller and more affordable apartments, the average realized price for rental units fell by 1.1% to CZK 40,440. However, this decline doesn’t mean that rents are actually becoming cheaper—on the contrary, prices for comparable properties continued to rise by 6.9 percentage points according to the summary basic index.

The decline in the average realized price is therefore due exclusively to structural changes in demand, not to a decline in market prices.

We recorded the highest number of transactions, thanks to attractive rental housing projects in Karlín, followed by Vinohrady, Smíchov, New Town, and Žižkov. High-quality projects with well-equipped units are in high demand on the market.

Traditionally, foreigners accounted for the largest share of rental transactions (64%). Most come from outside the EU.



Price Analysis

The Prague residential market through the lens of Svoboda & Williams during the monitored period 7/2025–12/2025. 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 (July 2025–December 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 (7/2025–12/2025); percentage changes are half year (7/2025–12/2025 vs. 1/2025–6/2025). 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 7/2025–12/2025

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

Ø Apt. price* Ø Price per sq. m. Ø Apt. size Ø Price per sq. m.
New apt.** Resale apt.
Sales CZK 13,548,814 Kč CZK 177,568 76.3 sq. m. CZK 186,647 CZK 165,691
3.0% 3.7% -0.6% 3.8% 3.4%
Rentals CZK 40,440 N/A 84.1 sq. m. N/A N/A
-1.1% N/A -5.0% 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 (7/2025–12/2025)

Layout Ø Monthly rent Rentals Ø apt. floor space Ø Selling price Sales Ø apt. floor space
studio CZK 22,113 37.0 sq. m. CZK 6,374,448 34.1 sq. m.
1bdrm CZK 30,531 56.3 sq. m. CZK 10,031,801 54.9 sq. m.
2bdrm CZK 47,242 105.0 sq. m. CZK 17,084,024 93.0 sq. m.
3bdrm CZK 72,002 158.6 sq. m. CZK 25,055,496 146.1 sq. m.
4bdrm CZK 84,964 185.0 sq. m. CZK 33,751,779 207.3 sq. m.

Source: data of Svoboda & Williams

SALE

Average achieved rents vs. sales prices for specific layouts in Prague 1-10 (7/2025–12/2025)

Municipal district Ø Apt. price Ø Price per sq. m. Ø Apt. size
Prague 1 CZK 29,601,911 CZK 234,014 117.8 sq. m.
Prague 2 CZK 15,376,983 CZK 203,208 75.7 sq. m.
Prague 3 CZK 11,561,123 CZK 181,850 63.6 sq. m.
Prague 4 CZK 13,888,018 CZK 175,271 79.2 sq. m.
Prague 5 CZK 12,693,214 CZK 167,077 76.0 sq. m.
Prague 6 CZK 18,876,905 CZK 171,917 109.8 sq. m.
Prague 7 CZK 12,821,418 CZK 186,555 68.7 sq. m.
Prague 8 CZK 10,040,000 CZK 169,123 59.4 sq. m.
Prague 9 CZK 11,545,956 CZK 143,371 80.5 sq. m.
Prague 10 CZK 11,770,518 CZK 178,649 65.9 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

75% Czechs
25% Foreigners

Financing the purchase of property

46% Own funds
54% Mortgage loans

Sales per layout

12.5% studio
36.5% 1bdrm
29.8% 2bdrm
16.3% 3bdrm
4.8% 4bdrm and larger

RENTALS

Overall summary of average achieved rental prices in municipal districts (7/2025–12/2025)

Municipal district Ø Monthly rent Ø Apt. floor space Ø Monthly rent 1bdrm Ø Monthly rent 2bdrm
Prague 1 CZK 48,672 104.7 sq. m. CZK 37,943 CZK 52,000
Prague 2 CZK 48,102 101.4 sq. m. CZK 32,957 CZK 56,563
Prague 3 CZK 36,432 75.0 sq. m. CZK 29,055 CZK 40,405
Prague 4 CZK 38,685 79.3 sq. m. CZK 27,500 CZK 40,000
Prague 5 CZK 47,027 102.1 sq. m. CZK 29,695 CZK 47,825
Prague 6 CZK 44,460 103.2 sq. m. CZK 25,913 CZK 46,318
Prague 7 CZK 36,338 70.8 sq. m. CZK 29,192 CZK 51,129
Prague 8 CZK 32,992 52.5 sq. m. CZK 30,537 CZK 39,800
Prague 9 CZK 32,100 80.5 sq. m. CZK 26,813 CZK 36,750
Prague 10 CZK 38,510 93.3 sq. m. CZK 26,850 CZK 42,948

Source: data of Svoboda & Williams

Tenant Segmentation

Ratio of Czech and foreign clients inquiring about a property

47% Czechs
53% Foreigners

Ratio of clients who rented a property

36% Czechs
64% Foreigners

Rents per layout

9.8% studio
49.0% 1bdrm
24.9% 2bdrm
13.0% 3bdrm
3.2% 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. 46% 54% 38% 62%
CZK 30-60 thous. 48% 52% 37% 63%
CZK > 60 thous. 55% 45% 24% 76%
Total 47% 53% 36% 64%

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

H2 2025 (July 2025–December 2025)

CZK 40,440

Average achieved rents in the monitored period (July 2025–December 2025) in Prague

-1.1%

Change in the semi-annual index compared to the previous period (January 2025–June 2025)

The Basic Aggregate Price index tracks changes in the average achieved rental price for apartments in Prague from Svoboda & Williams' listings during the monitored period (July 2025–December 2025) compared to the base period, which is set as the first half of 2015. It's an aggregate price index calculated as a weighted average of changes in rents for individual categories of apartments.

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

Achieved apartment rents in H2 2025 per segment and half-year changes

Segment Center Wider center Rest of Prague
Studio to 1bdrm CZK 33,790 7.3% CZK 28,386 -3.1% CZK 24,378 -6.9%
2bdrm CZK 50,313 13.3% CZK 47,035 0.0% CZK 34,709 -7.4%
3bdrm and larger CZK 80,016 13.7% CZK 74,760 2.9% CZK 55,950 10.0%

Source: data of Svoboda & Williams

Relative representation in the portfolio

Segment Center Wider center Rest of Prague
Studio to 1bdrm 12.5% 38.8% 8.0%
2bdrm 6.9% 12.5% 5.0%
3bdrm and larger 6.7% 7.5% 2.2%

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

H2 2025

Current trends in the commercial leasing market

3.94 mil. sq. m.

Total volume of office space in Prague

6.45%

Vacancy rate

EUR 30/sq. m./month

Prime rent in the city center

In 2025, the office market was defined by very low construction activity and a shortage of high-quality new builds, which further reduced the vacancy rate of attractive spaces. In the highest-quality AAA buildings in the most sought-after locations—Karlín, Pankrác, and Smíchov—it fell below 5%; in Prague as a whole the rate remained a stable 6.45%. 

Most of the projects currently under construction will be completed in the next two years. The PASSERINVEST GROUP development in Prague 4, which will bring over 70,000 m² of AAA-class office space for lease in three new projects, is one of the most highly anticipated.

Due to the limited stock, the office market in the wider city center will continue to be a landlord’s market in the coming year. Only in the outskirts of Prague or in buildings with more complicated public transport access will tenants be in a better position. It will therefore be more advantageous for tenants to negotiate new terms at their current address than to move, not least because relocating always involves a significant investment on the part of the tenant.

Up to 80% of office market real estate transactions last year were made using Czech capital, including key transactions such as the sale of Palladium, the Riverside complex in Karlín, and the Visionary building in Prague’s Holešovice district.

At the end of the year, Svoboda & Williams’ consultants succeeded in securing tenants for both commercial units in the Stock Exchange Palace, where we exclusively represent VIG FUND, and in helping a tenant sign a lease agreement in Prague’s BB Centrum for 2,500 m². 


Jaroslav Waldhauser 

Head of Commercial Leasing at Svoboda & Williams 

TOTAL VOLUME OF FLEXIBLE OFFICE SPACE IN PRAGUE

146,351 sq. m.

The second half of 2025 confirmed the continuing strength of the flexible and shared office segment in Prague. The total area of these spaces surpassed 146,000 m², a year-on-year increase of over 9%. The market ended another year with stable growth, driven not only by the demand for flexibility, but also by the change in attitudes toward work and the office environment. As a result, flexible offices are consolidating their position as one of the key pillars of the Prague office market.

Scott.Weber Workspace remains the local leader, having opened two more branches in the capital last year, as well as its first center outside Prague in the 4,407 m² Organica Ostrava building. Further expansion is planned in Prague and beyond, including the planned opening of a new location in Karlín in spring 2026.

Also strengthening its position last year was the international operator IWG, which opened a branch in Prague (Lighthouse Waterfront Tower with an area of 1,200 m²) and expanded its regional network with a second branch in Ostrava in the Laso shopping center. Impact Hub also added to the regional coworking market, opening its second branch in Brno at the end of 2025.

Flexible offices have now become a standard part of companies’ work strategies. While traditional office spaces face a limited supply of high-quality new buildings, shared offices offer companies an effective way to respond to fluctuations in employee numbers, support hybrid models, and optimize costs without long-term commitments. They’ve transitioned from an ancillary service to a fully-fledged segment of the office market, accompanied by a growing demand in Prague and the rest of the country.

PRAGUE'S SHARED OFFICE MARKET

Percent of operators' market share

SHARED OFFICE MARKET IN PRAGUE

Ratio of local to international providers

73.4% Local
26.6% International
  • Local: Offices Unlimited, Scott.Weber Workspace, Fleksi, Flexi Offices, Impact Hub, Opero, WorkLounge, Mo-Cha, Zenwork, Business Centrum Smíchov
  • International: IWG (Spaces + Regus), WeWork, mycowork Palmovka

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