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Prague's rental market offers diverse opportunities for both investors and tenants, with average monthly rents ranging from €550 for studios to over €3,000 for premium three-bedroom apartments.
Central districts like Prague 1 and Vinohrady command significantly higher rents than outer areas, while rental yields typically range between 3.5-4% gross, making Prague competitive with other Central European capitals like Budapest and Warsaw.
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Prague's rental market shows strong demand across all property types, with central districts commanding premium rents up to €1,350 monthly for average apartments while outer districts offer more affordable options starting around €990.
Rental yields average 3.5-4% gross citywide, with net yields typically 1.5-2% lower after expenses, and the market has experienced significant growth with rents rising 30% over five years and 10% in 2024 alone.
| Property Type | Average Rent (€/month) | Gross Yield (%) | Rent per m² (€) |
|---|---|---|---|
| Studio (17-50 m²) | €550-€1,500 | 3.5% | €15-€20 |
| One-Bedroom | €600-€1,800 | 3.45% | €15-€20 |
| Two-Bedroom | €1,200-€1,800 | 3.96% | €15-€20 |
| Three-Bedroom | €1,000-€3,000+ | 3.28% | €15-€20 |
| Central Districts (Prague 1-2) | €1,350+ average | Lower yields | €20+ per m² |
| Outer Districts (Prague 4,9,10,13) | €990+ average | Higher yields | €15-€18 per m² |
What's the average monthly rent for different types of properties in Prague?
Prague's rental market offers a wide range of options depending on property size and location.
Studio apartments typically rent for €550-€1,500 per month, with most units ranging from 17-50 square meters. The variation depends heavily on location, with central districts commanding significantly higher prices.
One-bedroom apartments show a median monthly rent of around €922 citywide, though actual listings range from €600 to €1,800. Central locations consistently fall at the higher end of this spectrum.
Two-bedroom apartments generally cost €1,200-€1,800 monthly, depending on the specific location and property standard. These units represent good value for families or professionals sharing accommodation.
Three-bedroom apartments have a median rent of approximately €1,524, but the range extends from €1,000 to over €3,000 for premium properties in sought-after areas.
How do average rents vary between central neighborhoods and outer districts?
Central Prague districts command significantly higher rents than outer areas due to proximity to business centers and tourist attractions.
Prague 1, the historic city center, shows the highest average rent at around CZK 33,810 (approximately €1,350) for an average apartment. This district includes the Old Town and Lesser Town, making it the most expensive area in the city.
Prague 2, particularly the Vinohrady neighborhood, also commands premium rents and ranks among the highest-priced areas in Prague. The average rent per square meter here can reach CZK 477 (approximately €20).
Outer districts like Prague 4 and Prague 9 offer the most affordable options, with median rent for a 70 square meter apartment around CZK 24,850 (approximately €990). Prague 10 studios average €641 monthly, significantly lower than central areas.
The price difference between central and outer districts can exceed 35%, making location the primary factor determining rental costs in Prague.
What's the average rent per square meter in Prague?
Prague's citywide average rent stands at approximately CZK 380 per square meter (roughly €15.9), though this varies significantly by location and property size.
| District/Area | Rent per m² (CZK) | Rent per m² (€) |
|---|---|---|
| Prague 1 (City Center) | 450-500 | €18.5-€20.5 |
| Prague 2 (Vinohrady) | 420-477 | €17.2-€20 |
| Prague 3-6 (Inner Districts) | 350-420 | €14.4-€17.2 |
| Prague 7-8 (Mixed Areas) | 320-380 | €13.1-€15.6 |
| Prague 9-13 (Outer Districts) | 280-350 | €11.5-€14.4 |
| Citywide Average | 380 | €15.9 |
Premium districts like Prague 2 can reach CZK 477 per square meter (approximately €20), while outer districts typically range from €11.5-€14.4 per square meter.
Smaller properties often command higher per-square-meter rates due to increased demand and limited availability of compact units, particularly studios and one-bedroom apartments.
What additional costs are usually included or excluded in the rent?
Most Prague rental listings exclude utilities and additional services from the advertised rent price.
Utilities including electricity, water, heating, and sometimes gas are typically paid separately by tenants. These costs can add €50-€150 monthly depending on the property size and season.
Internet services are usually the tenant's responsibility, adding approximately €15-€30 monthly for standard broadband packages.
Service charges or HOA fees may be included in some rental agreements, but more commonly tenants or owners pay these separately. Building maintenance fees average around CZK 135 per square meter monthly (approximately €5.50/m²/month).
Initial rental costs include the first month's rent, a security deposit equivalent to 1-2 months' rent, and potentially a real estate agent fee equal to one month's rent if an agency facilitated the rental.
How much are property taxes and typical maintenance costs for rental properties in Prague?
Property ownership costs in Prague remain relatively low compared to Western European standards.
Property tax for apartments costs approximately €0.072 per square meter annually. For example, a 70 square meter apartment would incur about €5 yearly in property tax, making this expense negligible for most investors.
Maintenance costs average around CZK 135 per square meter monthly (approximately €5.50/m²/month), covering building upkeep, common area maintenance, and basic services.
For a typical 70 square meter apartment, total monthly maintenance and utility costs could reach approximately €385, though this varies significantly based on building age, management quality, and included services.
Additional ownership expenses may include property management fees (if using a service), insurance, and occasional major repairs or renovations.
What would the total monthly outlay look like with mortgage financing?
Financing a Prague rental property through a mortgage creates significant monthly cash flow requirements that exceed rental income.
For a typical one-bedroom apartment costing €320,000, a 20-year mortgage at 4% interest would require approximately €1,900 monthly for principal and interest payments.
Total monthly outlay includes the mortgage payment (€1,900), maintenance costs (€385), and negligible property tax, totaling approximately €2,285 monthly.
With a one-bedroom apartment renting at €922 monthly, property owners face a negative cash flow of about €1,363 monthly before considering tax deductions or potential capital appreciation.
This analysis demonstrates why many Prague property investments rely on capital appreciation rather than immediate rental income for profitability.
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What are the gross and net rental yields by area and property type in Prague?
Prague's rental yields reflect the city's position as a competitive Central European investment destination.
| Property Type | Gross Yield (%) | Net Yield (%) | Best Performing Areas |
|---|---|---|---|
| Studio Apartments | 3.5% | 1.5-2.5% | Outer districts |
| One-Bedroom | 3.45% | 1.5-2.5% | Prague 4, 9, 10 |
| Two-Bedroom | 3.96% | 2.0-3.0% | Prague 6, 7, 8 |
| Three-Bedroom | 3.28% | 1.5-2.5% | Suburban areas |
| Central Districts | 2.5-3.0% | 1.0-1.5% | Prague 1, 2 |
| Outer Districts | 4.0-5.0% | 2.5-3.5% | Prague 9, 10, 13 |
Citywide gross rental yields average 3.5-4% for apartments, with two-bedroom properties showing the highest gross yields at 3.96%.
Net rental yields typically fall 1.5-2% below gross yields after accounting for taxes, maintenance, management fees, and vacancy periods.
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How have rental prices and yields changed over the past five years?
Prague's rental market has experienced substantial growth, outpacing most European capitals in price appreciation.
Rental prices rose approximately 30% over the five-year period from 2020-2025, with a particularly sharp 20% increase during 2022 alone due to increased demand and limited supply.
The most recent year showed continued growth with rents increasing about 10% in 2024, demonstrating the market's resilience and ongoing demand pressure.
Rental yields have improved slightly as rents increased faster than property purchase prices, with yields remaining steady or showing modest improvement compared to earlier periods.
Experts predict continued annual rent increases of 5% or more, suggesting yields will remain stable or improve slightly as demand continues outpacing new supply additions.
What are the current vacancy rates in Prague?
Prague's residential rental market shows extremely tight supply conditions with near-zero vacancy rates in most segments.
Affordable apartments priced under CZK 20,000 monthly (approximately €800) typically rent within days of listing, indicating virtually no vacancy for standard properties.
Central and popular districts maintain vacancy rates near zero, while less desirable or outer areas experience slightly higher but still very low vacancy rates.
The office market, by comparison, shows a 7% vacancy rate as of Q1 2025, with premium districts like Prague 2 at just 2.6% vacancy and outer districts like Prague 3 reaching 19% for commercial properties.
The tight residential market creates a landlord-favorable environment with minimal time between tenants and strong rental price negotiating power.
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.
What kinds of tenants are most common in Prague?
Prague's rental market serves a diverse tenant base with varying budget expectations and housing needs.
Local Czech residents form the largest tenant group, typically seeking affordable options under CZK 20,000 monthly (approximately €800) and prioritizing value and location accessibility.
Students represent a significant portion of the rental market, particularly in shared accommodations or student housing, with budgets typically under CZK 15,000 monthly (approximately €600).
Expatriates and digital nomads comprise a growing segment, often seeking furnished apartments in central or trendy districts with budgets ranging from CZK 20,000 to CZK 40,000 monthly (€800-€1,600).
International professionals and corporate relocations typically fall into the premium segment, willing to pay over CZK 40,000 monthly (€1,600) for high-quality, well-located properties.
The market segments clearly into affordable (under €800), standard (€800-€1,600), and premium (over €1,600) categories based on tenant demographics and financial capacity.
What's the profitability difference between short-term and long-term rentals in Prague?
Short-term and long-term rental strategies offer different risk-return profiles in Prague's current market environment.
Short-term rentals through platforms like Airbnb can generate higher gross income, particularly in central locations near tourist attractions, but require significantly higher management involvement and operational costs.
Long-term rentals provide stable, predictable income with lower management requirements and reduced vacancy risk, making them attractive for hands-off investors.
Short-term rental profitability depends heavily on location, with central districts performing significantly better than outer areas due to tourist preferences and proximity to attractions.
Current market conditions favor short-term rentals in prime locations due to rising tourism and demand for flexible housing, while long-term rentals offer better stability and lower regulatory risk.
It's something we develop in our Czech Republic property pack.
What are the forecasts for rental price and yield evolution in Prague?
Prague's rental market outlook suggests continued growth driven by sustained demand and limited new supply additions.
One-year forecasts predict rental price increases of 5% or more, with yields expected to remain steady or show slight improvement as rental growth continues.
Five-year projections indicate continued rent appreciation if demand remains strong and new construction fails to meet market needs, though yields may stabilize or decline if property prices rise faster than rental income.
Ten-year forecasts suggest a likely continuation of upward trends in both rents and property values, but yields may compress if price appreciation outpaces rental growth.
Compared to similar cities like Budapest and Warsaw, Prague's yields (3.5-4%) remain competitive, with all three capitals experiencing strong investor interest and affordability challenges for local residents.
As we reach mid-2025, Prague's rental growth ranks among the highest in Central Europe, positioning the city as a strong regional investment destination despite potential yield compression risks.
It's something we develop in our Czech Republic property pack.
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.
Prague's rental market presents compelling opportunities for both investors and tenants, with diverse options ranging from affordable outer district properties to premium central locations.
The market's strong fundamentals, including low vacancy rates, steady yield potential, and continued rental growth, position Prague as an attractive Central European investment destination despite the current negative cash flow reality for leveraged investors.
Sources
- Spotahome - Prague Studio Rentals
- Global Property Guide - Czech Rental Yields
- Global Property Guide - Czech Republic Rent
- InvestRopa - Prague Real Estate Market
- Expats.cz - Prague Housing Market
- Deloitte - Czech Rent Index
- Move to Prague - Rental Costs Guide
- Tranio - Czech Republic Maintenance Costs
- ConBiz - Market Report 2024-2025
- Expats.cz - Prague Rental Market Expert Analysis