"Prague holds 16th place in the ranking of European cities by rent levels. It thus stands alongside luxury metropolises such as Milan, London and Rome, as well as emerging markets represented by Budapest," says Lucie Romeo, senior consultant at Colliers. While Prague's rents are among the higher ones, they remain more affordable than prime Western European locations where prices range between €950 and €2,000 per sqm.

Prague's strong position is supported by growing tourism, with over 8 million visitors in 2024, and increasing local purchasing power. The luxury retail clientele has transformed significantly over the past five years, with domestic Czech customers now making up more than half of all customers for many luxury brands, replacing previous shoppers from Russia and China.

From an investment perspective, Prague shows strength with a prime yield of 4.5% for the best retail units in the city center, practically matching Rome, Milan, Frankfurt and Hamburg. This positions Prague as a mature, stable and low-risk market. "For institutional investors, premium shopping centers and properties at iconic Prague addresses such as Parizska, Na Porici and Wenceslas Square represent an attractive investment opportunity," says Katarina Brydone, director of Colliers Czech branch.

In the shopping center segment, Prague's best units up to 100 sqm achieve rents of up to €145 per sqm monthly, placing the capital fifth in Europe. With a prime yield of 6%, Czech shopping centers are perceived as stable investments comparable to Barcelona or Madrid.