With over 1.3 million inhabitants, Prague is the most populous city in the Czech Republic. The capital city is famous for its historic city centre, its Romanesque and Gothic architecture, as well as its buildings dating from the Renaissance and Baroque periods. Besides tourists, Prague is also attracting increasing numbers of investors. “Strong demand is met here with a limited availability of listings. Sale prices have levelled out solidly in recent years,” says Andreas von Schlik, Managing Director of Engel & Völkers Prague.
The most sought-after residential areas in Prague among buyers are the districts of Ořechovka, Bubeneč and Vinohrady. Investors and families in particular are drawn to these neighbourhoods. The most popular types of property include freehold apartments in historic buildings and prestigious, detached mansions. In addition to a balcony and a well-tended garden, good transport links are also at the top of the list of search criteria for buyers. In 2018, premium locations, exclusive apartments sold for top prices per square metre of up to 400,000 Czech koruna (15,500 euros). In the same period, sale prices for top-quality mansions reached 300 million Czech koruna (11.6 million euros).
The prospect of a sound capital investment and healthy returns are attracting both national and international buyers to Prague. They are interested in real estate for their own private occupancy or as an investment asset that will hold its value. Domestic clients currently dominate the market here, accounting for approximately 70 percent of sales. The majority of international prospective buyers come from Russia, followed by clients from Italy, Germany, Slovakia and France.
Engel & Völkers forecasts that the property market will continue to see positive growth over the coming months. “We anticipate a sustained high level of demand from private buyers and capital investors for residential properties in Prague. So we’re expecting stable price increases for freehold apartments and detached homes,” says Andreas von Schlik.