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Where are the best places to invest in the Czech Republic right now? Is Prague still the top pick, or are cities like Brno, Ostrava, and Plzeň gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in the Czech Republic and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Brno's Královo Pole is popular with investors for high rental yields from students and young professionals
Brno's Královo Pole is catching the eye of investors thanks to its high rental yields.
Over the past few years, the Czech real estate market has seen a significant rise in rental yields, with areas like Královo Pole leading the charge. The expansion of prime yields by 60-135 basis points since mid-2022 underscores the growing appeal of rental properties here. This trend is largely driven by the influx of students and young professionals.
Brno is a student magnet, being the second most popular city for students in the Czech Republic in 2023. It hosts over a fifth of the country's student population, creating a strong demand for rentals. Královo Pole, with its student-friendly vibe, benefits greatly from this. The presence of six public universities, including the large Masaryk University, ensures a steady stream of potential tenants.
Young professionals are also flocking to Brno, further boosting rental demand. Known as a tech and innovation hub, the city attracts many young professionals looking for quality living conditions. This demographic shift is a boon for Královo Pole, making it a hotspot for investors seeking promising returns.
Investors are particularly drawn to Královo Pole because of its ability to offer high rental yields driven by these demographic changes. The combination of students and young professionals creates a vibrant rental market, ensuring consistent demand.
For those considering property investment, Královo Pole offers a unique opportunity. The area's appeal is not just in its rental yields but also in its dynamic community, making it a wise choice for investors.
Sources: Property Forum, Statista, The Recursive
2) Olomouc's Nová Ulice is attracting investors with strong rental demand from the university community
Olomouc's Nová Ulice is a hotspot for investors thanks to the strong rental demand from the local university community.
Palacký University Olomouc, with its over 4,400 international students from 108 countries, is a major draw. This student population has been steadily increasing, more than doubling in the last decade, which fuels the rental market.
Rental prices around Palacký University, including Nová Ulice, are on the rise. While specific figures for Nová Ulice aren't available, the general trend in Olomouc shows increasing rental prices, especially near the university, indicating a high demand for student housing.
Nová Ulice's appeal is also due to its proximity to university facilities and amenities, making it a prime location for students. The university's diverse study programs and scientific activities further boost the demand for nearby accommodation.
This demand is likely pushing up rental prices, enhancing the area's investment potential. Investors are drawn to the consistent demand for student housing, which promises steady returns.
Sources: Czech Universities
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.
3) Ústí nad Labem’s Střekov district is attracting investors with low prices and high rental yield potential
Střekov in Ústí nad Labem is becoming a hotspot for investors due to its low property prices.
While districts like Prague 1 and Prague 2 have sky-high property prices, Střekov offers a more affordable entry point for those looking to invest. This affordability is a big draw, as it means potentially higher returns on investment.
The rental market in Střekov is buzzing, with apartments being snapped up quickly. This high demand is a sign of a strong rental market, supported by a growing number of renters in the area.
Investors are particularly interested in Střekov because of its rental yields. According to Valuo, yields can reach up to 10%, much higher than the 3% seen in bigger cities like Prague. This makes Střekov a very appealing choice for property investment.
Local government efforts to improve urban development and infrastructure are making Střekov even more attractive. These initiatives are likely to draw more renters, further boosting rental yields and investor interest.
Střekov's strategic location, with easy access to transport links and amenities, adds to its charm. This convenience is a magnet for both renters and investors, making it a prime location for property investment.
Sources: Global Property Guide, Numbeo, Rondainvest
4) Pardubice’s Polabiny neighborhood is gaining interest for its family-friendly vibe and new housing projects
Polabiny in Pardubice is gaining traction as a real estate hotspot, especially among families.
One major draw is the surge in new housing projects. Back in 2023, there was a 6.7% increase in sales compared to the previous year, signaling more housing options and a growing appeal for potential buyers. This uptick in development is making Polabiny a sought-after area.
Families are particularly drawn to Polabiny for its family-friendly environment. While specific demographic data for Polabiny isn't available, it's evident that families across the Czech Republic are on the lookout for neighborhoods that meet their needs. This aligns with the rising interest in Polabiny, hinting that it offers what families desire.
Public transportation improvements in Pardubice have also played a role. Although details about Polabiny's specific transport links aren't mentioned, the overall enhancement in the city's public transport system likely makes the neighborhood more convenient for residents, adding to its appeal.
Insider knowledge suggests that Polabiny's charm lies in its blend of modern amenities and community feel. New housing projects often include parks and recreational areas, which are perfect for families looking to settle down in a vibrant yet peaceful environment.
Moreover, the neighborhood's proximity to schools and shopping centers adds to its attractiveness. Families appreciate the easy access to essential services, making daily life more manageable and enjoyable.
Sources: Global Property Guide, Visit Pardubice
5) Zlín's Malenovice area is gaining interest for its affordable homes and closeness to growing business zones
Malenovice in Zlín is becoming a hot spot for property buyers due to its affordable prices.
Compared to the rest of Zlín, Malenovice offers a more budget-friendly option, with lower average flat prices making it attractive for those looking to invest without overspending.
Its appeal is also boosted by its proximity to expanding business zones. The area is close to bustling industrial and logistics markets, where manufacturing companies are thriving, making it a convenient place for workers in these sectors.
Infrastructure improvements have further enhanced Malenovice's charm. Although specifics aren't detailed, it's clear that better transportation links between Malenovice and central Zlín have made the area more accessible and desirable.
These developments are likely to attract both residents and businesses, as improved infrastructure typically does. The convenience of living near work and having easy access to central Zlín is a significant draw for many.
Sources: Global Property Guide, Property Forum
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6) Liberec's Ruprechtice area is attracting interest with new infrastructure boosting property appreciation potential
Liberec's Ruprechtice area is becoming a hotspot for property investors.
In 2024, property prices in Liberec jumped by 8.0%, which is twice the national average. This surge highlights how Liberec, including Ruprechtice, is outshining other regions. The city's commitment to modernizing its public transport system is a game-changer. While specific upgrades in Ruprechtice aren't detailed, such improvements generally boost property values, attracting both residents and investors.
There's a buzz around Liberec's housing market, with a 6.7% rise in sales transactions for development projects in 2023. This uptick signals a growing desire to buy homes, which can push property values higher. Real estate platforms like Properstar are spotlighting Liberec as a promising investment area, hinting at the potential in Ruprechtice.
Investors are keen on areas with strong growth potential, and Ruprechtice fits the bill. The city's infrastructure investments are likely to enhance the area's appeal, making it a prime spot for future appreciation. As more people flock to Liberec, the demand for housing in Ruprechtice is expected to rise, further driving up property values.
Liberec's strategic location and ongoing developments are drawing attention. The city's efforts to improve connectivity and amenities are making it an attractive option for property buyers. With the right mix of growth and infrastructure, Ruprechtice is poised to become a sought-after destination.
Sources: Deloitte Real Index, Properstar
7) Ostrava’s Poruba district is booming with rising property values due to urban revitalization projects
Property values in Ostrava's Poruba district are on the rise thanks to ongoing urban revitalization projects.
In 2023, the Poruba property market saw a shift from high demand to high supply, eventually finding a sweet spot. This balance has led to more competitive pricing, with over 500 flats available, offering a variety of options for buyers and renters.
Ostrava's dedication to urban revitalization is a major driver of this trend. The city is transforming areas like the Poruba tram depot into a smart quarter and expanding the Science and Technology Park. These projects are not just about improving the quality of life; they are also attracting both domestic and international investors, which in turn boosts property values.
The city's strategic goals, such as building an interconnected city and revitalizing the historic city center, highlight Poruba's importance in Ostrava's development plans. These initiatives, along with media coverage showcasing Poruba's transformation, have made the district more appealing to potential residents and investors.
Poruba's charm is not just in its projects but also in its community vibe. The district offers a mix of modern amenities and green spaces, making it a desirable place to live for families and young professionals alike.
With its ongoing developments and strategic location, Poruba is becoming a hotspot for those looking to invest in property. The district's transformation is a testament to Ostrava's vision for the future, making it a prime area for real estate investment.
Sources: Ostrava Expat, Fajnova, The New Ostrava Project
8) Hradec Králové’s Slezské Předměstí is gaining interest for its affordable prices and rising rental demand
Hradec Králové's Slezské Předměstí is catching the eye of buyers thanks to its affordable property prices.
Compared to bustling Prague, the cost of flats here is much lower, offering a sweet spot for those who want affordability without sacrificing quality. This makes it a smart choice for anyone looking to get more bang for their buck.
But it's not just about buying; there's a buzz in the rental market too. The Czech Rental Association notes that rental prices are climbing in major cities, including Hradec Králové. This trend hints at rising rental yields, making Slezské Předměstí a hot spot for investors eager to tap into rental income.
Adding to the appeal, Hradec Králové is seeing a steady population growth. More people are choosing to live and invest here, drawn by the area's charm and potential. This demographic shift is a good sign for future property values.
Local government is also playing its part, pumping money into infrastructure and amenities. These improvements are making Slezské Předměstí even more attractive for both residents and investors, enhancing its reputation as a desirable place to settle.
With all these factors in play, it's no wonder that Slezské Předměstí is becoming a go-to choice for those looking to invest in property. The combination of affordable prices and increasing rental demand is hard to resist.
Sources: Global Property Guide, OECD, Expats.cz
We have made this infographic to give you a quick and clear snapshot of the property market in the Czech Republic. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Jihlava's Bedřichov area is gaining interest for its strategic location between Prague and Brno, offering strong investment potential
Jihlava's Bedřichov area is buzzing with real estate activity, thanks to its prime location between Prague and Brno.
Being right on the D1 motorway, Bedřichov offers excellent road connectivity, making it a hot spot for both living and business. This easy access to two major cities is a big draw for people looking to settle or invest here. The area is becoming a residential and commercial hub because of this strategic positioning.
In 2024, Jihlava's real estate market has been lively, with steady home sales showing a healthy demand for properties. Nearby Brno saw property prices rise by 3.6% in June 2024, hinting at a trend that might be spilling over into Jihlava. This makes Bedřichov an attractive option for those priced out of Brno.
The local government in Jihlava is making smart moves by setting clear development rules that lure businesses and residents alike. Their teamwork with developers has sped up construction approvals and cut project costs, which is a big plus for real estate growth. Infrastructure projects are also in the mix, drawing more investors and residents to the area.
Sources: Jihlava - Wikipedia, Jihlava's Successful Collaboration with Developers, Czech Real Estate Market Shows Resilience in June 2024
10) Karlovy Vary’s Drahovice is popular for its attractive prices and rising foreign buyer interest
Karlovy Vary's Drahovice neighborhood is becoming a hot spot for property buyers, thanks to its attractive property prices.
While cities like Prague have seen a boom in real estate due to high demand and limited housing supply, Karlovy Vary offers a different story. Here, property prices have dipped, making it a magnet for those seeking undervalued properties. This trend is particularly appealing to foreign buyers who are on the lookout for a good deal.
Compared to Western Europe, property prices in Karlovy Vary are quite low, which is a big draw for international investors. Although we don't have specific numbers for Drahovice, the buzz around Karlovy Vary suggests a growing interest from Ukrainian buyers and Chinese investors. These groups are increasingly eyeing the Czech real estate market, and Drahovice is likely benefiting from this attention.
Real estate agents have observed a shift in buyer demographics. There's now higher demand from Ukrainian buyers compared to Russians, and Czech buyers are making a comeback as prices fall. Drahovice, being part of Karlovy Vary, is likely riding this wave of renewed interest.
Karlovy Vary's charm isn't just about property prices. Its tourism industry, with spa resorts and natural attractions, has always played a role in boosting property demand. This allure could be spilling over into Drahovice, making it an even more attractive option for potential buyers.
11) Plzeň's Bory neighborhood is gaining interest for its affordable homes and closeness to major industrial employers
Plzeň's Bory neighborhood is quickly becoming a hot spot for homebuyers.
One of the main attractions is its affordable housing options, especially when compared to the skyrocketing prices in Prague. While many are feeling the pinch of rising rents in the capital, Bory offers a more budget-friendly alternative, making it a smart choice for those looking to save on living costs.
Another big draw is Bory's proximity to major industrial employers. The nearby Borska Pole industrial zone is a key player in the local economy, providing numerous job opportunities. This means residents can enjoy shorter commutes and lower travel expenses, which is a huge plus for anyone working in the area.
Plzeň is also investing heavily in infrastructure improvements, which is great news for Bory. The city is rolling out smart mobility solutions and 5G networks, which will boost transportation links and accessibility. This makes Bory even more appealing for both residents and businesses.
These developments are not just about convenience; they also enhance the quality of life in Bory. With better connectivity and infrastructure, the neighborhood is poised to become a vibrant community where people want to live and work.
For anyone considering a move, Bory offers a unique blend of affordability, job opportunities, and modern amenities. It's a neighborhood on the rise, with plenty of potential for growth and development.
Sources: ITI Plzeň, Econstor, Urban Transport Magazine, Expats.cz
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12) České Budějovice's Vltava district is gaining interest with rising property prices from its scenic location and improved transport links
The Vltava district in České Budějovice is seeing a rise in property prices due to its scenic location and improved transport links.
Imagine living near the Vltava River trail, a beautiful route that starts in České Budějovice and connects to charming towns like Hluboká nad Vltavou. This trail has become a favorite for both locals and tourists, thanks to enhancements like regular navigation lines and information points. It's not just a pretty view; it's a lifestyle upgrade.
Getting around is a breeze here. The Vltava River trail links up with major highways and public transport, making it super convenient for residents. This easy access is a huge plus for potential buyers who want the best of both worlds: natural beauty and connectivity.
But there's more than just nature and convenience. The district is buzzing with new amenities and services. Take Hluboká nad Vltavou, for instance. It's part of the Vltava district and boasts attractions like a fairytale castle and the Aleš South Bohemian Art Gallery. These spots make the area even more appealing to live in.
Locals know that the Vltava district isn't just about pretty views and easy commutes. It's about a lifestyle enriched by culture and history. The area is becoming a hotspot for those who appreciate both modern conveniences and historical charm.
So, if you're considering buying property here, you're not just investing in a home. You're investing in a vibrant community with a unique blend of nature, culture, and accessibility.
Sources: Global Property Guide, Budejce.cz, Visit Czechia
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.
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