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May 20, 2016

Poor yields in Prague


Last Updated: May 20, 2016
PRAGUE - Apartments COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
70 sq. m. 259,700 781 3.61% 3,710 11.15
120 sq. m. 459,720 1,434 3.74% 3,831 11.95
Prague 1: Stare Mesto, Josefov, Mala Strana, Nove Mesto
Prague 2: Vinohrady and Nove Mesto
Prague 5: Smichov
Prague 6: Dejvice
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Prices of houses and apartments in the Czech Republic have begun to rise again, according to Czech National Bank statistics.  Wonderfully beautiful Prague is quite an expensive city in which to buy property:

  • a 120 square metre (sq. m.) apartment in Prague will cost you around 460,000 euros
  • a 70 sq. m. apartment in Prague will cost you around 260,000 euros

The purchase price of apartments in Prague’s prime residential districts is now around 3,500 euros to 4,000 euros per sq. m..

How much will you earn?  Prague’s rental yields are weak:

  • a 120 square metre (sq. m.) apartment in Prague can rent for around 1,500 euros per month, earning a yield of around 3.7% a month
  • a 70 sq. m. apartment in Prague can rent for around 780 euros, earning a yields of around 3.6% a month

Currency risk. Over the past two years, the Czech Koruna has flat-lined against the euro.

Conclusion: You’re not going to buy in Prague for yields, at the moment!

Round trip transaction costs are moderate to high in the Czech Republic. See our Czech Republic transactions cost analysis and our Czech transaction costs compared to other countries.






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