Investing in real estate in Prague remains an attractive option in 2024, even though property prices appear to be at historically high levels. The real estate market stabilized in the first half of the year and, with the gradual decline in mortgage rates, interest in investment apartments is rising again. Nevertheless, as shown by data from the Deloitte Real Index Q2 2024, it is still possible to achieve returns if investors carefully select the right property and make use of available financial instruments.
According to the Deloitte Real Index for Q2 2024, the average price of apartments sold in the Czech Republic increased by 2.4%, with the average price reaching CZK 101,700/m². In Prague—the center of real estate investment—the average property price rose by 5.7% to CZK 132,000/m², confirming a long-term upward trend.
However, Prague continues to show uneven price growth across individual districts:
Prague 1 reached an average price of CZK 172,700/m² with year-on-year growth of +12.0%.
In Prague 6, growth is somewhat weaker, with prices up 0.3% to CZK 127,900/m².
A significant increase is also evident in Prague 7, where apartment prices rose by 14% to CZK 146,400/m².
This growth is driven by insufficient supply and persistently strong demand, with developers facing higher construction costs that are reflected in the price of new units. Units marked as “sold” in developers’ offerings achieve an average price of CZK 144,700/m², while the average price of second-hand apartments stands at CZK 140,900/m².
Recently, there has been growing interest in investing in accommodation units as an alternative to traditional apartments. An accommodation unit is a specific type of property that typically offers a smaller footprint and is primarily intended for short-term rentals—an advantage especially in tourist-attractive locations such as the city center and greater center of Prague.
These units can be an appealing choice for investors focused on short-term rentals via platforms like Airbnb. Another benefit is often a lower entry price compared to traditional apartments, which can reduce risk and accelerate return on investment.
Using a model example of a 2-room apartment (2+kk) in Prague priced at CZK 7 million, with 20% equity and a mortgage for the remaining amount (CZK 5.6 million), it is possible to achieve a net profit with an annual property price growth of around 5%. After five years, the price of such an apartment would reach CZK 8.9 million, which—after deducting all costs (commission, tax, interest, loan repayments)—would deliver a net profit of roughly CZK 650,000. This return can be increased by faster property price growth or a longer investment horizon.
Real estate investment in Prague continues to offer attractive opportunities despite high prices. Investors should carefully select the location, property type, and financing to maximize returns. Price developments indicate that Prague’s real estate market continues to grow, and it is very likely that this trend will persist. Accommodation units represent an interesting alternative for those who want to diversify their investment portfolio with a lower entry capital requirement and faster payback.
It is always important to keep in mind that real estate investments are not entirely without risk. A price decline or a change in market conditions may result in a loss, which must be considered in long-term investment planning.
If you are interested in investing in attractive properties—available either on the open market or off-market—or in opportunities in international real estate investments, do not hesitate to contact me! I can provide expert advice and detailed information on current opportunities. For more information, please contact me below.
