The proximity to metro stations is one of the main factors influencing the price, availability and attractiveness of office space in Prague, accoding to a recent analysis by Colliers. The highest rents near Prague metro stations are found in the city centre, where prices for premium office space reach up to €30 per sqm per month. In the wider city centre, the highest rents go up to €22, and on the city outskirts, up to €16.50 per sqm per month. Differences between individual locations are becoming more pronounced, based not only on distance from the city centre, but also on building quality, the age of the office stock and the current supply of available space.
"The most expensive locations continue to be stations in the very centre of Prague. The highest rents are found around the Náměstí Republiky and Muzeum stations, where prime rents hover around €30 per sqm per month," says Josef Stanko, Director of Market Research at Colliers. The highest prices are concentrated around metro transfer stations such as Národní třída and Křižíkova. Current asking prices for projects under construction often differ by several euros, and these are expected to set a new price standard soon. At the opposite end, Petřiny has the lowest prime rent at €10 per sqm per month, followed by Zličín at €13 and Opatov at €14.
A greater distance from the city centre does not automatically mean lower rent. Rents of €20 or more are common near some stations outside the historic centre, particularly around Pankrác, Budějovická, Invalidovna, Palmovka and Roztyly. This is due to a combination of transport access, modern office developments, nearby amenities and interest from companies in locations offering a good work environment outside the most expensive downtown area.
The vacancy rate for Prague office space has fallen below 6 percent this year, with significant differences among districts. For top-tier AAA-class buildings, those in the city centre recorded a vacancy rate of just 2.3 percent, with Karlín at 2.7 percent, Brumlovka at 4.8 percent and Pankrác at 5.2 percent. In contrast, Stodůlky and Nové Butovice report rates exceeding 17 and 10 percent. "Prague thus has two distinct office markets: one overheated and the other stagnant," says Stanko. The lowest vacancy rates are around the Invalidovna, Hlavní nádraží and Flora stations at around 1 percent. At Želivského the rate is 28 percent, at Stodůlky 18 percent and at Kolbenova 15 percent, though year-on-year these outlying areas are slowly attracting tenants.
"Future developments will be influenced not only by new construction, but also by the ageing of the existing office stock. By 2030, up to 600,000 sqm of office space in Prague will be 20 or more years old," notes Stanko. This creates opportunities for modernising buildings, raising their standards and, in some cases, changing their use. For tenants, this means a wider range of options, from premium projects to more affordable offices in older buildings.
