What is the average price per square meter for Prague real estate?

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What kind of property are you looking at — apartment, house, new development, or something else?

Prague's residential property market offers several distinct options depending on your budget and lifestyle preferences.

Apartments represent the most common choice in central Prague, particularly in historic buildings that have been renovated or in modern new developments. These typically range from 30-70 square meters for standard units, with larger maisonettes extending up to 100+ square meters across multiple levels.

Houses are more prevalent in outer districts and premium residential areas, offering more space and privacy but commanding higher total prices due to their size. New developments have become increasingly popular, featuring modern apartments in planned communities with amenities like underground parking, green spaces, and integrated retail facilities.

Maisonettes provide a middle-ground option, offering multi-level living within apartment buildings, often found in new developments with premium positioning and higher per-square-meter pricing.

Which neighborhoods or districts in Prague are you considering, and how do their average prices per square meter compare?

How much space are you aiming for, and how does price per square meter vary with total surface area?

Prague apartment sizes follow a standardized classification system that directly impacts pricing per square meter.

Studio apartments (1+kk) typically range from 25-35 square meters and command the highest price per square meter due to their central locations and appeal to young professionals and investors. One-bedroom units (2+kk) span 35-50 square meters, while two-bedroom apartments (3+kk) range from 50-70 square meters.

Larger apartments generally offer better value per square meter, though this effect is less pronounced in central districts where location premium dominates. A 70-square-meter apartment in central Prague averages CZK 156,851 per square meter, totaling over CZK 10 million for the entire unit.

New developments and smaller units typically command premium prices per square meter due to modern amenities and efficient layouts that maximize living space.

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What's the typical total purchase price, including all transaction costs, notary fees, agent commissions, and taxes?

Understanding the complete cost structure is essential for accurate budgeting when purchasing Prague real estate.

The base purchase price varies by district and property type as outlined above, but additional costs add 6-8% to your total investment. For properties in the CZK 1-2 million range, expect transaction costs closer to 8%, while higher-value properties may see costs around 6% due to economies of scale.

Real estate transfer tax represents the largest additional cost at 4% of the purchase price, paid by the buyer. Agent commissions, notary fees, legal services, and escrow fees comprise the remaining 2-4% of transaction costs.

For a CZK 10 million apartment purchase, your total investment reaches approximately CZK 10.6-10.8 million including all mandatory costs and professional services.

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Are there any special taxes or recurring fees you need to account for when owning property in Prague?

Prague property ownership involves minimal ongoing tax obligations compared to many Western European markets.

Property tax remains remarkably low at CZK 2-4 per square meter annually for apartments and CZK 2 per square meter for houses. Municipality size multipliers may apply, but even with adjustments, annual property taxes typically total only a few thousand crowns for most residential properties.

Maintenance fees for apartments in managed buildings vary significantly based on building age, amenities, and location, typically ranging from CZK 30-100 per square meter monthly. These fees cover common area maintenance, building insurance, and facility management services.

Individual property owners face no recurring acquisition taxes or special property ownership taxes, making Prague an attractive market for long-term property investment from a tax perspective.

What mortgage options are available in Prague, and how do interest rates and down payment requirements affect total costs?

Prague's mortgage market offers competitive financing options for both Czech residents and qualified foreign buyers.

Minimum down payment requirements stand at 20% of the property value, with many lenders preferring 25-30% for foreign applicants. As of mid-2025, mortgage interest rates average around 4.6% for new loans, significantly down from 6.3% in mid-2024, reflecting improved economic conditions.

Fixed-rate periods typically span 3-5 years, with longer terms available at slightly higher rates. Czech banks offer variable rates tied to central bank policy, while fixed rates provide payment certainty during the initial years.

Higher down payments and current lower interest rates substantially reduce monthly payments and total interest costs over the loan term, making property ownership more accessible than during the high-rate period of 2023-2024.

How have Prague real estate prices changed over the past 5 years and 1 year, and what are the projected trends for the next 1, 5, and 10 years?

Prague's real estate market has experienced significant volatility over the past five years, with distinct phases of growth, correction, and recovery.

The five-year trend shows sharp price increases leading to 2021 peaks, followed by moderation during 2022-2023, and strong rebounds throughout 2024. New apartment prices increased approximately 10% in 2024, with certain districts like Prague 3 experiencing exceptional 21% year-over-year growth.

Short-term projections for the next 12 months suggest continued price appreciation of 5-10% driven by persistent supply-demand imbalances and improved financing conditions. The market benefits from limited new supply relative to demand from both domestic buyers and international investors.

Medium-term expectations for the next five years point to sustained annual growth around 5%, supported by Prague's continued economic development and population growth. Long-term 10-year projections indicate continued appreciation, though subject to broader economic cycles and potential market corrections.

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What are the most expensive areas, the most affordable ones, and which districts are considered up-and-coming?

Prague's real estate landscape features distinct pricing tiers that reflect location desirability, infrastructure development, and investment potential.

The most expensive areas center on Prague 1, 2, and 3, encompassing the historic center, Vinohrady, and increasingly gentrified Žižkov. These districts command premium prices due to cultural significance, established infrastructure, and limited development opportunities.

The most affordable options cluster in southwest outskirts including Zbraslav, Lochkov, Lipence, and Radotín, where prices average CZK 116,150 per square meter. These areas offer value for buyers prioritizing space over central location.

Up-and-coming districts show strong potential for appreciation: Holešovice (Prague 7) attracts artists and young professionals, Karlín (Prague 8) has emerged as a business hub, Nové Dvory (Prague 4) features major new developments, and Letňany (Prague 9) offers family-friendly amenities with growth potential.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Czech Republic versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

If your goal is to live there long-term, which neighborhoods offer the best balance of price, lifestyle, and amenities?

Long-term residents seeking optimal value should focus on districts that combine reasonable pricing with quality amenities and lifestyle factors.

Dejvice (Prague 6) stands out for families and professionals, offering diplomatic quarter prestige, international schools, excellent transport connections, and moderate pricing around CZK 127,500 per square meter. The area provides a cosmopolitan atmosphere with strong rental demand.

Vršovice (Prague 10) appeals to young professionals and creatives with its vibrant local scene, good value at CZK 117,200 per square meter, and emerging cultural attractions. Holešovice (Prague 7) combines artistic character with improving infrastructure and reasonable prices at CZK 128,400 per square meter.

Nové Dvory (Prague 4) represents the best option for families prioritizing new construction, modern amenities, schools, parks, and transport links, all at competitive CZK 119,100 per square meter pricing.

If you want to rent it out, how does expected return differ for short-term (Airbnb) vs long-term rental markets?

Prague's rental market offers distinct opportunities for both short-term and long-term investment strategies, each with specific risk-return profiles.

Long-term rental yields average 5.7% in central locations, with lower yields in outer districts due to reduced rental demand. This strategy provides stable, predictable income with minimal management requirements and lower regulatory risks.

Short-term rentals through platforms like Airbnb generate net income 30-50% higher than long-term rentals, but require active management, higher operational costs, and face increasing regulatory uncertainty. The Prague city government has implemented restrictions on short-term rentals in central districts.

Airbnb concentrations remain highest in Prague 1 and 2, but opportunities exist in emerging areas as tourists seek authentic experiences beyond traditional tourist zones. Success depends on property location, quality, and professional management capabilities.

If you're planning to buy, renovate, and resell, which locations and property types offer the best flip potential today?

Prague's flip market rewards investors who identify undervalued properties in appreciating neighborhoods with renovation potential.

Prague 3 (Žižkov) offers exceptional flip potential with 21% annual price growth and ongoing gentrification, particularly for older apartments requiring modernization. Holešovice (Prague 7) attracts creative professionals and young families seeking character properties with renovation opportunities.

Karlín (Prague 8) has emerged as a business district, creating demand for modern housing among professionals working in the area. Prague 4 (Nové Dvory) offers opportunities in older properties that can be upgraded to compete with new developments.

Target older apartments needing cosmetic updates or layout improvements, particularly in buildings with good bones and desirable locations. Focus on properties where renovation costs can be recovered through increased market value in appreciating neighborhoods.

It's something we develop in our Czech Republic property pack.

How does Prague compare in average real estate prices, cost of living, and rental yields with other major Central or Western European cities like Budapest, Vienna, or Berlin?

Prague positions itself as a middle-market option among major European cities, more expensive than Eastern European capitals but significantly cheaper than Western European markets.

Rental yields in Prague exceed those available in Vienna or Berlin, making it attractive for income-focused investors, though Budapest offers higher yields at lower entry costs. Cost of living remains high for Central Europe but substantially lower than Western European equivalents.

Prague's combination of moderate pricing, decent yields, and quality of life creates an attractive investment proposition for those seeking European exposure without Western European price premiums.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Professionals Real Estate
2. Global Property Guide Czech Republic
3. Dreamville Prague Neighborhoods
4. Conbiz Market Report
5. Czech Point Property Purchase Costs
6. CMS Real Estate Guide
7. Varso Invest Czech Market
8. Global Property Guide Rental Yields
9. Prague Morning Airbnb Analysis
10. Numbeo Property Investment Rankings