Poor yields in Prague
Residential Valuation Specialist | July 30, 2018
| Last Updated: Jul. 30, 2018 | |||||
| PRAGUE - Apartments | COST (€) | YIELD (p.a.) | PRICE/SQ.M. (€) | ||
| TO BUY | MONTHLY RENT | TO BUY | MONTHLY RENT | ||
| Prague 1 | n.a. | n.a. | 3.23% | 6,128 | 16.51 |
| Prague 2 | n.a. | n.a. | 4.10% | 4,514 | 15.42 |
| Prague 3 | n.a. | n.a. | 4.51% | 3,744 | 14.06 |
| Prague 4 | n.a. | n.a. | 4.52% | 2,927 | 11.02 |
| Prague 5 | n.a. | n.a. | 4.79% | 3,383 | 13.51 |
| Prague 6 | n.a. | n.a. | 3.94% | 3,641 | 11.95 |
| Prague 7 | n.a. | n.a. | 4.38% | 3,661 | 13.36 |
| Prague 8 | n.a. | n.a. | 4.17% | 3,563 | 12.38 |
| Prague 9 | n.a. | n.a. | 4.43% | 3,031 | 11.18 |
| 1Prague 10 | n.a. | n.a. | 4.39% | 3,129 | 11.45 |
| ROME - Historical Centre - other areas | |||||
| Prague 1 60 sq. m. | 390,317 | 1,022 | 3.14% | 6,505 | 17.03 |
| Prague 2 60 sq. m. | 221,155 | 950 | 5.15% | 3,686 | 15.83 |
| Prague 3 60 sq. m. | 215,570 | 872 | 4.85% | 3,593 | 14.53 |
| Prague 4 60 sq. m. | 179,260 | 652 | 4.36% | 2,988 | 10.87 |
| Prague 5 60 sq. m. | 197,110 | 874 | 5.32% | 3,285 | 14.57 |
| Prague 6 60 sq. m. | 202,937 | 789 | 4.67% | 3,382 | 13.15 |
| Prague 7 60 sq. m. | 206,682 | 810 | 4.70% | 3,445 | 13.50 |
| Prague 8 60 sq. m. | 208,764 | 777 | 4.47% | 3,479 | 12.95 |
| Prague 9 60 sq. m. | 176,135 | 671 | 4.57% | 2,936 | 11.18 |
| Prague 10 60 sq. m. | 179,864 | 629 | 4.20% | 2,998 | 10.48 |
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All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower. Notes: The high-end neighborhoods in Prague are located in Prague 1 (Josefov, Mala Strana, Nove Mesto, Stare Mesto) , Prague 2 ( Nove Mesto, Vinorhady) , Prague 5 (Smichov) and Prague 6 (Dejvice) Source: RealityMix.cz Definitions: Data FAQ See also: Update Schedule |
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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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