Prague property is expensive, and rental yields are poor
Residential Valuation Specialist | March 08, 2022
|Last Updated: Mar. 08, 2022|
|PRAGUE - Apartments||COST (€)||YIELD (p.a.)||PRICE/SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|Prague 1 60 sq. m.||448,777||869||2.68%||6,658||14.90|
|Prague 2 60 sq. m.||379,539||929||3.02%||6,204||15.63|
|Prague 3 60 sq. m.||325,287||748||3.30%||5,282||14.55|
|Prague 4 60 sq. m.||265,693||632||3.00%||4,463||11.17|
|Prague 5 60 sq. m.||293,491||803||3.33%||4,888||13.58|
|Prague 6 60 sq. m.||277,413||638||2.96%||4,794||11.83|
|Prague 7 60 sq. m.||306,690||713||2.86%||5,532||13.19|
|Prague 8 60 sq. m.||306,750||674||2.92%||4,996||12.14|
|Prague 9 60 sq. m.||253,462||636||3.23%||4,390||11.83|
|1Prague 10 60 sq. m.||260,164||623||2.98%||4,571||11.37|
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
Gross rental yields, i.e., the rental return on a property if fully rented out, before all expenses, are poor in Prague. Though some areas have higher yields, gross rental yields for apartments tend to be near or under 3%. Prague is the most expensive of any significant Czech city to buy or rent a property. Prices in Prague range from EUR 4,000 to EUR 6,000 per square metre (sq. m.).
In Prague 2, a district popular for expats with quick access to the city centre, apartment prices cost an average of EUR 6,335 per square metre (sq. m.) and rent is around EUR 16 per square metre (sq. m.), earning a rental yield of 2.94%. Property prices here are less expensive than in Prague 1, where a 60 square metre (sq. m.) apartment costs around EUR 6,799 per sq. m. and rents at EUR 15 per sq. m., generating a rental yield of 2.32%. Most expensive flats are located in Prague 1 and Prague 2.
Another district favoured by expats is Prague 5, one of the largest districts of Prague. A 60 square metre (sq. m.) apartment in this area typically costs EUR 4,991 and rents at EUR 14. Apartment prices here are much more affordable than in the city centre.
The largest Prague district is Prague 6 and has a very high cost of living. But there is a relatively available options like in our research where a 60 square meter (sq. m.) apartment cost around EUR 4,895 and EUR 12 for rent, generating a rental yield of 2.76%.
Rental yields in the first district of Prague are quite weak, at around 2.32% for a 60 square metre apartment. In district 5, the yield can amount to 3.29%. Yields have eased from three years ago, when property yielded around 3.14% to 4.73%.
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.