Reading time: 2 minutes 
Prague’s Karlín district continues to be the prime location for businesses seeking office spaces, driven by a combination of several factors. According to 108 Real Estate, an industry consultancy, the district’s appeal lies in its modern infrastructure, services, and relatively lower rents compared to other central areas of the city.
Explaining Karlín’s appeal
"Karlín has everything a modern, progressive district needs," said Lena Popová, head of the office leasing department at 108 Real Estate. "It offers excellent accessibility and a thriving ecosystem of large companies and their suppliers.” Many nearby leisure activities, and multiple dining options also add to the area’s popularity.
According to the analysis, offices in other, more peripheral parts of Prague are offered for the same—and sometimes even higher—price as in Karlín.
Office shortage makes Karlín more attractive
One of the reasons for Karlín’s appeal is the overall shortage of offices on Prague’s real estate market. The real estate consultancy notes a shortage of new office buildings in the city, with new supply levels far below the demand.
Between 2021 and 2024, Prague completed between 50,000 and 100,000 square meters (sqm) of office space annually. However, in 2025, only 24,000 sqm are expected to be finished, highlighting a significant gap between demand and availability.
Due to the limited number of new office buildings being constructed, many companies are vying for available space in the district.
Lack of space is driving up rents
The limited supply of office space in Prague has led to rising rents. Over the past two years, rents have increased by an average of approximately CZK 100 per sqm. The situation is particularly pronounced in modern office buildings, where spaces of 1,500 sqm or more are often rented almost immediately, and typically at higher prices.
Currently, modern office spaces in Karlín are renting for an average of CZK 490 per sqm, while older office buildings in the area can be priced up to CZK 100 cheaper per sqm. In comparison, rents in Prague’s city center have ranged from CZK 714 to CZK to 739 per sqm, while areas further from the center have lower rents, at around CZK 438 per sqm.
Other popular office areas
The competition for office space extends beyond Karlín, with other districts like Smíchov and Pankrác also seeing increased interest. Developers such as Sekyra Group are working on large-scale projects, including the Smíchov City district, which is expected to draw more businesses, including major firms like Česká spořitelna and ČEZ.
The expansion of these districts, combined with developments near metro stations like Pankrác and Budějovická, suggests that demand for office space in Prague will continue to rise in the coming years.
