How much does real estate cost in Prague?
The Czech Republic has long become one of the most popular destinations for Russians, along with Spain, Italy and Germany, although most Russian citizens prefer to buy property in Prague rather than in other cities of the country. Some of them have a clear idea of how much housing costs in Prague and are aware of the entire process of purchasing it, while others are just beginning to become interested in this issue.
First of all, you should keep in mind that real estate in Prague is noticeably more expensive than in other regions of the country, and for those who want to save money, either the regions or the outskirts and suburbs of the capital are suitable. On the other hand, when buying residential property in prestigious areas of Prague, you can be sure that this is a profitable investment, and the initial price will slowly but surely rise in price in the future.
Such housing can be regarded both as a long-term investment with subsequent resale, and as a means of earning money by renting out.
According to the latest research, Prague is one of the three most promising capitals in Eastern Europe. This is explained, first of all, by its convenient geographical location, European way of life, the presence of well-known universities abroad and the mild climate. It is no coincidence that the main buyers are citizens of highly developed countries: South Korea, the USA, Germany and Canada.
The cost of real estate in Prague depends on several factors, but the determining factors are still the location, coupled with the development of infrastructure. Moreover, the average cost of an apartment in the Czech capital last year was around 2,600 euros per square meter. Taking into account the average area of about 70 sq.m. a one-bedroom apartment – the most popular among buyers – will cost from 200 thousand euros, although, again, the area in which it is located should be taken into account.
Property prices in different areas of Prague
In total, there are 12 districts in Prague, 10 of which simply have serial numbers – Prague-1, Prague-2, etc…, and two more are named after parts of the world – Prague-West and Prague-East.
The most prestigious and expensive is Prague 1, where luxury real estate is mainly concentrated, prices for which reach almost 9,000 euros per 1 sq.m. with an area of 100 sq.m. There are practically no new buildings in this area, and secondary real estate is often included in the UNESCO Intangible Heritage of Humanity list, so changing the external appearance of buildings is excluded here.
The cheapest areas of Prague are Prague 4, Prague 9 and Prague 10, although foreigners prefer Prague 5 and Prague 6, which are located away from the main highways of the city. In addition, Prague 6 has a low population density, a large number of green areas and a minimal number of tourists.
In turn, Prague 5 attracts with its well-developed transport network and has a reputation as an expensive residential area where you can find a variety of examples of architecture from the last century. Prices vary depending on the condition of the building and its proximity to the border with Prague 1.
Finally, luxury real estate can be found in Prague 2, which has gained the reputation of a bohemian area with a large number of shops and restaurants of classic cuisine. Mostly citizens of Great Britain and highly developed countries of Western Europe flock here. Average price of 1 sq.m. real estate in different areas of Prague in euros (at the end of 2018)
|Price € per sq. m.
Property prices in Prague in 2019
Over the past year, the residential real estate market in Prague, as before, has seen a noticeable increase in demand, although it mainly concerned secondary real estate, while the volume of sales of new buildings has decreased significantly. However, the average price of real estate in Prague has surpassed 3,500 euros per 1 sq.m.
The trend of a stable rise in housing prices in the capital of the Czech Republic, first noted in 2016, continues to this day, although the increase in prices is no longer at the same pace with a gradual slowdown and has almost reached its maximum.
At least, this is what experts from the famous international company Deloitte, working in different countries of the world, think. According to their latest data for the first quarter of 2019, there are several objective reasons for this:
- deterioration of the financial situation of residents of the Czech Republic;
- less affordable mortgage lending;
- a large number of new buildings on the real estate market;
- decreased demand for luxury real estate in the most prestigious areas of Prague;
- increase in the time it takes to sell apartments from the moment they are put on the market.
Thus, property prices in Prague are expected to increase only slightly in 2019 and subsequently stabilize, although they will remain equally expensive. The same applies to rent, the average cost of which fluctuates around 500 euros.
You can find out more about the real estate market in the Czech Republic here.