Office fit-out costs in Prague are still competitive despite rising construction costs and higher demand for modern work environments. According to the latest report from Cushman & Wakefield EMEA Fit Out Cost Guide Prague's offer of high-quality office spaces is at more favourable prices compared to other European cities.
While office fit-out costs have slightly increased in some neighbouring countries, Prague has managed to maintain its cost levels. Current costs in Prague range from €785 for low specifications to €1,950 per sqm for high-quality specifications.
The average, medium specification, which already includes partial ceiling modifications, plasterboard, wall finishes, and air conditioning adjustments, was €1,235 per sqm last year, representing a 1% decrease. Even within the Central and Eastern European region, Prague was no longer the most expensive; last year, according to the medium specification, Warsaw was more expensive reaching €1,275 per sqm. Price tags in German cities range from €2,333 in Berlin, through €2,408 in Frankfurt to €2,432 in Munich. On the other side, fit-out costs in Bratislava are slightly less than 50% of those in the German Capital.
The cost of fitting out new office spaces is one of the factors companies consider when deciding whether to stay in their current offices or move to new ones. Prague's central location and competitive prices can support this decision for companies, even in the context of expansion or relocation from abroad. However, it is expected that the trend of rising costs, as seen in other countries, will continue.
Glyn Evans, Head of Design + Build, EMEA at Cushman & Wakefield confirms: “Whilst we have seen a very minor drop in pricing during the past 12 months, due to an increase in competitiveness on the market, we do expect construction prices to continue increasing, albeit not at the rates we saw during the past 6-7 years.”
Office building owners must motivate tenants to choose their project. However, their incentives often do not cover the costs associated with moving and relocation. Incentives are also given to those who renegotiate their lease in existing spaces.
Radka Novak, Head of Office Agency at Cushman & Wakefield adds: "Although developers try to cover a large part of these costs in the form of a fit-out contribution, the capital cost on the tenant's side remains too high, and many companies cannot afford to move to a new location. Even existing landlords cannot avoid high contributions for tenant space modifications, as most tenants are modernising their spaces, and their continued tenancy is conditional on qualitative improvements to the premises."
Despite higher cost prices across Europe, approximately 50% of all new leases that took place last year in Europe were directed towards modern Class A office buildings, which offer not only flexible work environments but also higher energy efficiency and comfort for employees.
Companies are also increasingly emphasizing sustainability and environmental factors (ESG). According to the latest data, investments in ESG initiatives increased by 46% among suppliers in the EMEA region in 2024. Companies are focusing on energy-efficient buildings, the use of eco-friendly materials, and innovative approaches to flexible work environments.
