Market Report Q4 2022

The Real Estate Market Has Become an Arena for a Battle of Nerves

Prokop Svoboda

Owner of Svoboda & Williams

A difficult year is now behind us. We experienced economic troubles caused by the energy crisis, the central bank grappled with runaway inflation (over 15% in the last two quarters) compounded by soaring housing costs, and the Czech economy eventually fell into recession, all of which are factors that have a significant impact on the real estate market. 

The atmosphere today is reminiscent of the tension just before the iconic shootouts in Sergio Leone’s westerns—actors stand stiffly, waiting for the next move, their nerves twitching... Who will emerge as the victor and who will go down? 

Although data from the last quarter of the last year indicates a cooling down in the demand for properties for sale, all of us at  Svoboda & Williams are optimistic about the future. Each era generates winners who want to live their success in the here and now. At the end of the year, we concluded several important transactions that reinforced our belief in quality real estate as a stable base for investors during times of high inflation.

This is why we’re not alarmed by the voices from the market opportunistically announcing a double-digit drop in prices, no doubt motivated by efforts to energize the stagnant business situation. Although in certain regions or segments such a decline may have very real consequences, premium properties, which Svoboda & Williams has been monitoring for a long time, aren’t affected by steep drops in prices. A significant correction will occur in properties that had price tags well above realistic valuations carried over from the real estate boom.

Especially when it comes to premium new builds, prices may decline even further this year, due in part to the unprecedented growth in key output costs, including construction materials, utilities, or even land. Moreover, the stock of exclusive properties in Prague and Brno remains insufficient. This could send a strong message to successful developers with capital to maintain a stable price level. However, we must also expect pressure from the market to offer discounts. In any case, we’ll have to wait until next year to see who will win this battle of nerves and who will still be around.

One thing is clear: it won’t be easy. People will be less and less able to afford to live in properties they own. In the period ahead, the real estate market will be shaped by rental housing. In the past year, this segment saw record-breaking growth, but rents in Prague and Brno are starting to run up against the new economic reality—a decline in expats from multinational corporations relocating to these cities due to cost cutting during the recession on the one hand, and on the other weakened purchasing power, which, according to the Czech Statistical Office, fell by a tenth in the second half of last year. We can therefore expect that the rental housing bubble will be corrected in 2023.

The commercial property segment must also prepare for the turbulent months ahead. These will reveal how the corporate market can absorb inflation and the steeply rising energy and office fit-out costs. Both will likely slow down company relocations this year and sharply increase the market share of flexible office leases.

Sample of Properties Monitored by Svoboda & Williams

7/2022–12/2022 vs. 1/2022–6/2022

  • CZK 153,434

    Total sales, Ø per sq. m.

    Year-on-year +0.6%

  • CZK 158,412

    New builds and reconstructions, Ø per sq. m.

    Year-on-year -0.8%

  • CZK 141,209

    Resales, Ø per sq. m.

    Year-on-year +0.7%

  • CZK 39,800

    Rent per the Rental Price Index, per month

    Year-on-year +14.7%

  • Decrease in inquiries

    Half-year comparison

    (H2 2022 vs. H1 2022) -31.5%


Based on the sample monitored by Svoboda & Williams


Despite a half-year decline in inquiries of 32% (year-on-year even down by 37%), the average price of apartments sold didn’t significantly decrease. The market has stalled and is waiting for a push to propel it onwards. The sample of properties monitored by S&W is resilient, reacts to the situation in the market with less sensitivity, and demonstrates how quality real estate is able to preserve its value even in uncertain times.

The effect of market mechanisms is evident: high mortgage interest rates meant that for the first time in the history of S&W’s Market Reports, clients who took out a mortgage in order to buy a home accounted for less than 35% of all transactions.

The high percentage of Czech buyers (77%) and high percentage of clients who purchased real estate with their own resources (67%) reflect the purchasing power of the local population. People invest their savings in real estate as a “safe haven” whenever inflation goes up.


Since the end of the pandemic, apartment rents have continued in their steep rise—according to S&W’s Rental Price Index their year-on-year increase was 23%.

According to S&W’s Rental Price Index, the rents for smaller apartments (studios to one-bedrooms) in the city center saw the biggest increase (year-on-year by almost 40%) and thus made the biggest contribution to the overall increase in prices. In H2 2022, the average rent in this segment was CZK 31,030.

While in the first half of 2022 inquiries were evenly spread out in terms of the nationality of the inquirers, in H2 2022 foreigners were in the majority across all price segments and accounted for 59% of all inquiries and 67% of all realized rental agreements (the impact of Ukrainians on the Prague rental market musn’t be overlooked). It must be noted that the rise in rents is slowly reaching the limit of what prospective tenants are willing to accept.

The increase in rents have made Czechs think twice about moving. Those who don’t have to prefer to keep their current rental apartment and hope that the landlord won’t demand a higher rent.

Price Analysis

The Prague residential market through the lens of Svoboda & Williams during the monitored period 7/2022–12/2022


during the monitored period 7/2022–12/2022

Average prices during the monitored period (JULY–DECEMBER 2022) and their half-year change (compared to JANUARY 2022–JUNE 2022).

Ø Apt. price* Ø Price per sq. m. Ø Apt. size Ø Price per sq. m. Ø Apt. price
New apt.** Resale apt. 1bdrm 2bdrm
Sales CZK 14,190,241 CZK 153,434 91.4 sq. m. CZK 158,412 CZK 141,209 CZK 8,404,035 CZK 14,847,001
5.4% 0.7% 3.4% -0.8% 0.7% -8.3% 3.4%
Rentals CZK 41,838 N/A 100.2 sq. m. N/A N/A CZK 30,680 CZK 39,000
14.1% N/A 2.7% N/A N/A 22.1% 2.7%

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




  • studio N/A N/A
    1bdrm 74.0 sq. m. CZK 11,121,390
    2bdrm 122.0 sq. m. CZK 19,837,924
    3bdrm 160.4 sq. m. CZK 24,438,614
  • studio N/A N/A
    1bdrm 54.5 sq. m. CZK 10,082,500
    2bdrm 109.6 sq. m. CZK 17,869,180
    3bdrm 221.6 sq. m. CZK 42,552,000
  • studio 39.6 sq. m. CZK 6,526,434
    1bdrm 61.5 sq. m. CZK 9,521,644
    2bdrm 82.4 sq. m. CZK 12,517,129
    3bdrm 129.0 sq. m. CZK 19,985,311
  • studio N/A N/A
    1bdrm 66.0 sq. m. CZK 14,734,500
    2bdrm 97.7 sq. m. CZK 21,390,000
    3bdrm 123.5 sq. m. CZK 23,904,852
  • studio N/A N/A
    1bdrm 59.5 sq. m. CZK 9,648,571
    2bdrm 94.2 sq. m. CZK 15,236,000
    3bdrm 128.8 sq. m. CZK 19,846,000



Municipal district Ø Monthly rent Ø Apt. floor space Ø Monthly rent 1bdrm Ø Monthly rent 2bdrm
Prague 1 CZK 50,846 111.0 sq. m. CZK 37,652 CZK 46,426
Prague 2 CZK 47,730 110.5 sq. m. CZK 27,443 CZK 38,762
Prague 3 CZK 33,702 74.8 sq. m. CZK 27,135 CZK 35,769
Prague 4 CZK 34,972 99.6 sq. m. CZK 24,063 CZK 31,750
Prague 5 CZK 39,535 99.9 sq. m. CZK 27,551 CZK 37,330
Prague 6 CZK 48,830 121.8 sq. m. CZK 26,500 CZK 36,050
Prague 7 CZK 36,167 93.9 sq. m. CZK 26,846 CZK 35,864
Prague 8 CZK 35,630 89.1 sq. m. CZK 31,700 CZK 41,650
Prague 9 CZK 27,639 75.1 sq. m. CZK 23,313 CZK 35,429
Prague 10 CZK 30,986 80.7 sq. m. CZK 25,250 CZK 33,958

Source: data of Svoboda & Williams


Layout Ø Monthly rent Rentals Ø apt. floor space Ø Selling price Sales Ø apt. floor space
studio CZK 18,463 38.9 sq. m. CZK 5,669,633 35.5 sq. m.
1bdrm CZK 30,680 67.2 sq. m. CZK 8,404,035 58.7 sq. m.
2bdrm CZK 39,000 98.6 sq. m. CZK 14,847,001 98.4 sq. m.
3bdrm CZK 65,417 153.1 sq. m. CZK 24,869,505 152.1 sq. m.
4bdrm CZK 90,664 217.2 sq. m. CZK 27,447,500 192.3 sq. m.

Source: data of Svoboda & Williams


Municipal district Ø Apt. price* Ø Price per sq. m. Ø Apt. size Ø Price per sq. m. Ø Apt. price
New apt.** Resale apt. 1bdrm 2bdrm
Prague 1 CZK 21,911,666 CZK 202,986 108.0 sq. m. CZK 213,441 CZK 179,112 CZK 13,030,250 CZK 19,901,034
Prague 2 CZK 15,279,077 CZK 168,503 90.5 sq. m. CZK 173,739 CZK 149,865 CZK 8,842,056 CZK 16,346,064
Prague 3 CZK 13,516,339 CZK 161,808 83.5 sq. m. CZK 165,565 CZK 140,541 CZK 9,604,073 CZK 12,894,416
Prague 4 CZK 13,097,061 CZK 145,680 89.9 sq. m. CZK 146,940 CZK 130,755 CZK 8,080,156 CZK 13,235,000
Prague 5 CZK 12,157,239 CZK 141,794 85.7 sq. m. CZK 146,117 CZK 136,035 CZK 8,160,283 CZK 11,532,829
Prague 6 CZK 16,394,013 CZK 132,848 123.4 sq. m. CZK 137,658 CZK 131,608 CZK 9,898,235 CZK 15,952,993
Prague 7 CZK 18,156,667 CZK 160,602 113.1 sq. m. CZK 163,791 CZK 149,858 CZK 7,700,000 CZK 13,383,333
Prague 8 CZK 12,092,818 CZK 154,996 78.0 sq. m. CZK 157,668 CZK 143,255 CZK 10,195,418 CZK 16,993,029
Prague 9 CZK 7,365,000 CZK 118,925 61.9 sq. m. CZK 119,981 CZK 114,065 CZK 7,647,500 CZK 10,575,000
Prague 10 CZK 10,743,167 CZK 126,300 85.5 sq. m. CZK 135,005 CZK 117,463 CZK 8,674,167 CZK 13,549,200

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

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 2022–December 2022). 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 260 sold and 500 rented properties over a 12-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 New 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 (7/2022–12/2022); percentage changes are year-on-year (7/2022–12/2022 vs. 1/2022–6/2022). For sales, we also differentiate between the achieved price per sq. m. for two categories: new builds (e.g. apartments in residential projects and completely reconstructed units) and resale, or 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


Listed price


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.


Svoboda & Williams + VŠE


H2 2022 (July–December 2022)

CZK 39,800

Average achieved rents in the 2nd half of 2022

+ 23.0%

Year-on-year change

Achieved apartment rents in H2 2022 per segment and year-on-year changes

Segment Center Wider center Rest of Prague
Studio to 1bdrm CZK 31,030 39.3% CZK 24,271 15.0% CZK 22,871 27.9%
2bdrm CZK 42,527 22.0% CZK 37,224 20.4% CZK 32,521 13.1%
3bdrm and larger CZK 76,782 15.3% CZK 68,057 29.7% CZK 44,889 11.3%

Source: data of Svoboda & Williams

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

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

The Rental Price Index by S&W + VŠE monitors the changes in the average achieved rental price for an apartment in Prague from the portfolio of Svoboda & Williams compared to the same period in the previous year (July 2021–December 2021). This aggregate price index calculates the weighted average of the changes in rents for each apartment category. 

We also state the average achieved monthly rents in the monitored period (July 2022–December 2022) in Prague and for each apartment category (incl. year-on-year changes).


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 1,400 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.


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.


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:

Relative representation in the portfolio

Segment Center Wider center Rest of Prague
Studio to 1bdrm 14.3% 20.8% 8.8%
2bdrm 13.8% 14.3% 6.0%
3bdrm and larger 8.8% 11.3% 2.3%

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

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 corresponding half-year period in the previous year (e.g. H1 2021 vs. H2 2022)

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.


Ratio of Czech and foreign buyers

77% Czechs
23% Foreigners

Financing the purchase of property

67% Own funds
33% Mortgage loans


Ratio of Czech and foreign clients inquiring about a property

41% Czechs
59% Foreigners

Ratio of clients who rented a property

33% Czechs
67% Foreigners


Price segments Inquiries - Czechs Inquiries - Foreigners Realized rental transactions - Czechs Realized rental transactions - Foreigners
CZK <25 thous. 38% 62% 39% 61%
CZK 25-55 thous. 45% 55% 32% 68%
CZK >55 thous. 42% 58% 23% 77%
Total 41% 59% 33% 67%

Source: data of Svoboda & Williams


Q4 2022

Total volume of flexible office space in Prague

101,100 sq. m.

Share of flexible office space in the total volume of modern offices in Prague and Europe

Prague 2.6%

  • Amsterdam 10%

  • Paris 7.9%

  • Lisbon 7.9%

  • London 6%

  • Barcelona 6%

  • Brussel 4%

  • Warsaw 2%

The recent pandemic and the current steep rise in costs have accelerated the development of the shared office segment. In essence, the pandemic changed the way offices are used and propelled already existing trends easily 20 years forward. The share of flexible space in the total volume of modern offices in Prague hovered steadily below three percent in 2022, but demand is growing, even outside of Prague’s city center. Shared offices and coworking spaces are increasingly becoming an integral part of large office complexes, where they are raising the bar for what tenants can expect, improving the building’s image, and also function as an incubator for the expanding number of tenants. We expect that next year the share of flexible space in the office market will approach the volume commonly seen in other European capitals.