Every day in my work as a real estate consultant, I see the same problem: Prague doesn’t have enough new apartments to meet demand.

Buyers face record-high prices, yet properties continue to sell because demand remains strong. This imbalance is pushing owners and developers to explore creative solutions.

One trend, common in Western Europe and the US but only now emerging in the Czech Republic, is converting office buildings and hotels into residential spaces.

A clear example is the Trianon office building near Budějovická metro station. Built in 2009, it offers over 20,000 square meters of rental space and is currently occupied by Česká spořitelna employees. Once the bank moves its headquarters to Smíchov, Trianon will be empty. Its owner, the real estate fund Reico, is already considering whether to sell the building or transform it into apartments.

The idea makes sense. In Prague 4, where Trianon is located, several new office projects are in the pipeline, creating strong competition for tenants. Converting Trianon into housing would better reflect market reality: Prague needs homes more than it needs additional offices.

Trianon office building

This isn’t the first example of such a conversion in the city, but it would be among the first involving a modern, relatively new office building. Previous projects include Dům Radost in Žižkov, the Juliš Hotel on Wenceslas Square, and the former Vítkov Hotel in Žižkov, which was transformed into community housing with 105 small rental apartments. These cases demonstrate that conversions are possible, even if they are complex.

Of course, there are challenges. Banks typically value office buildings differently than residential properties, and conversions can involve significant additional costs. Zoning laws sometimes only allow “accommodation facilities,” which require services like reception, cleaning, or fitness areas, making living spaces more expensive than standard rental apartments.

Still, the trend is gaining momentum. In Madrid, over 300,000 square meters of office space has been converted since 2020, with 70% transformed into residential use. In London and New York, such projects have been standard for years. Prague is only starting, but the direction is clear.

For buyers and investors, this creates interesting opportunities. Converted buildings are often well located—close to public transport, shops, and services—and can be adapted into smaller, modern apartments in high demand among young professionals and rental investors alike.

As Prague continues to face a housing shortage, we can expect more of these projects—not only in the capital but eventually in Brno, Ostrava, and other major Czech cities.

Conversions won’t solve the housing crisis overnight, but they could deliver much-needed apartments far faster than waiting for entirely new residential developments.

Would you like us to write about your business? Find out more