Prague Is not as Expensive as It May Sometimes Appear

“It is a good sign that the highest rental price of retail units is becoming stable on most international markets and in some places it is even growing,” said Tomáš Beránek from Richard Ellis Group, who specialise in market analysing. “Self-confidence of purchasers and retailers has been slowly been getting back to normal, there is a healthy demand for premises and the prime localities have most places occupied,” added T. Beránek.

Prices

With the yearly price 13.744 euro/m2, New York remains the most expensive property market. Sydney follows with 9,207 euro/m2/year and in Hong Kong the price is 7.757 euro/m2/year. London which has experienced 20 % growth in comparison with the last quarter came fourth with the yearly rental price 6.859 euro/m2. The ranking list of the world’s most expensive localities is dominated by eight European markets (Moscow, Zurich, Milan, Munich, Roma, Frankfurt, Berlin and Dublin). In Prague, the highest rent in the best localities reaches up to 2.040 euro/m2/year.

Where is the most expensive in Prague?

“The key factor for retailers is to be located on one of the main shopping streets. In Prague, streets Na Příkopě, Pařížská and the bottom part of Wenceslas Square belong among the most prestigious destinations,” said T. Beránek.  There is limited choice of premises in these places and demand is strong, therefore the rent didn’t significantly decrease even in times of the crisis. “Only rarely new retail premises are opened here. One example is the recently opened Van Graaf on Wenceslas Square or the department store in Na Příkopě street, which may be able to offer up to 10.000 square metres,” said Tomáš Beránek.