Global Property Guide

Financial Information for Residential Property Buyers


Poor yields in Prague

Last Updated: 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
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

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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