According to Colliers’ latest survey (Q2 2025) on rental trends in prime shopping streets in the EMEA region (Europe, the Middle East, and Africa), Prague remains a strong contender among the most expensive European shopping destinations. The current monthly rent here is €220/sqm.
“Prague holds 16th place in the ranking of European cities by rent levels. It thus stands alongside traditional luxury metropolises such as Milan, London and Rome, as well as emerging markets represented, for example, by Budapest,” says Lucie Romeo, senior consultant at Colliers.
Prague has maintained its position among the European elite for a long time. Although rents here (€220/sqm) are among the higher ones, they remain significantly more affordable than in prime locations in Western Europe – for example, in Milan, Paris, London or Rome, where prices range between €950 and €2,000/sqm. This ratio – a prestigious location at a relatively affordable price – makes Prague an attractive and, above all else, balanced destination for both international brands and investors. For comparison, similar rents are currently found in Amsterdam (€208/sqm), Copenhagen (€245.7/sqm) and Dublin (€224/sqm).
Luxury retail in Prague is boosted by tourists and residents’ growing purchasing power
Prague’s strong position on the European luxury retail map is supported not only by the stability and maturity of the local market but also by the growing tourism industry. In 2024, over 8 million tourists visited the capital, and similar numbers are expected this year.
“Prague occupies a truly exceptional position in Central and Eastern Europe. Together with Budapest, it is one of the only capitals in the region with a developed high street scene featuring premium and luxury brands. Still, Prague plays a significantly dominant role here. It is more advanced, more visible on the international luxury retail map, and significantly more attractive to global brands,” says Stefanie Nguyenová, a retail specialist at Colliers, adding that this is confirmed by the rents that brands are willing to pay at premium Prague addresses. They are tens of percents higher than in Budapest.
Luxury stores’ clientele has also undergone a fundamental transformation. Whereas previously, a large proportion of shoppers were mainly customers from Russia and China, in the last five years, they have been replaced by clients from other European countries. The importance of domestic – Czech – customers has also grown significantly. Today, Czechs make up more than half of all customers for a number of luxury brands, confirming the local market’s growing purchasing power and maturity.
Prague keeps pace with the West – not only in terms of rents, but also in terms of return on investment
While rents on Prague’s main streets have long been competitive with those in major European cities, prime yield also plays a key role from an investor perspective. And this is where Prague shows its strength – perhaps even more so than in the actual rent levels.
Prime yield is the ratio between the price of a property and the rental income, i.e., how quickly the investment will pay off for the investor. But it is not just a number – it is a measure of perceived risk and market maturity. The lower the yield, the more stable, more attractive and safer the market is in the eyes of investors.
For many years, low prime yields were the domain of Western European capitals such as London, Paris and Munich. Today, however, Prague has moved significantly closer to those markets.
With a prime yield of 4.5 percent for the best retail units in the city centre, Prague is practically on a par with Rome, Milan, Frankfurt and Hamburg. What’s more, the difference compared to Paris, where the current yield is 4.25 percent, is now almost negligible. This clearly shows that Prague is now considered a mature, stable and low-risk market, which was not always the case. The only challenge remains the very limited number of premium properties appearing on the market, which further increases their value and attractiveness.
Shopping centres: Prague beats even Western capitals
Prague also maintains a strong position in the premium shopping centre segment. The best units up to 100 sqm in prime locations achieve rents of up to €145/sqm/month, which puts the capital city in fifth place for Europe – ahead of many established western European markets.
From an investor’s perspective, Czech shopping centres are highly attractive assets. A prime yield of 6 percent confirms that the highest-quality retail centres in Prague are perceived as stable, reliable investments: comparable to markets such as Barcelona or Madrid, where yields are at the same level.
By comparison, lower prime yields, i.e., markets with the lowest perceived risk, are currently offered by Paris, London and Brussels, where yields range from 5.4 percent to 5.5 percent.
Conversely, higher yields—i.e., markets that are perceived as riskier or less liquid—can be found in cities such as Milan, Rome, Amsterdam and all major German cities (e.g., Berlin, Frankfurt, Hamburg), where values are above 6 percent.
In contrast, Prague offers investors an interesting balance between ROI and stability – yields are attractive, but at the same time, it is a market with growing purchasing power, strong demand and limited supply.
Prague leads European retail investments: An excellent opportunity with growth potential
“For institutional investors, premium shopping centres and prestigious properties at iconic Prague addresses such as Pařížská, Na Poříčí and Wenceslas Square represent an exceptionally attractive investment opportunity. The combination of strong domestic purchasing power, growing tourism, high turnover achieved by brands in these locations and high demand (together with liquidity in the Czech investment market) creates an ideal environment for above-average returns with minimal risk. The key to success is careful selection of the most attractive locations with the greatest potential. Prague’s historic centre remains the most stable and sought-after space, especially because these are areas with the highest concentration of tourists and prestigious shopping streets. However, other premium centres can also be a great investment: not only in Prague but also in the Czech Republic’s other larger regional cities,” says Katarína Brydone, director of Colliers Czech branch.
For investors, Prague and Czech retail offer a unique combination of attractive financial parameters and long-term growth prospects. In the Central European context, it represents an ideal balance between risk and return with significant potential for capital appreciation.
