Residential Real Estate

Residential Real Estate Market Report 2019/2020 ¡ Prague

PRAGUE

1,308,632

12,327 EUR

4,000- 8,500 EUR/m²

13-18 EUR/m²

Population + 4.9 % (since 2013)

Purchasing power per capita 130.3 (purchasing power index)

Selling price (good location)

Rental price margin (good location)

Prague - the clear place to invest in Central Europe In the hundreds of years of its existence, Prague has acquired many names – the City of 100 Spires, the Golden City, the Mother of Cities. All of these names reflect Prague’s beauty and its importance since the Middle Ages as a cultural and educational centre in the heart of Europe – roles it continues to play today. The remarkable metropolis with its unique panorama of the Prague Castle was added to the UNESCO World Heritage List in 1992.

Thanks to good fortune, Prague was left relatively undamaged by the bombing of the Second World War, meaning that a large number of historic buildings have remained intact. With its monuments, parks, unique culture, dynamically developing business sector and rapidly improving quality of life, Prague is among the

best cities in Europe to invest and live in. Receiving close to eight million tourists annually, the Czech capital ranks as one of the world’s 20 most visited cities. Since the beginning of its economic recovery, the Prague real estate market has been experiencing steady growth, which is certain to continue in the years to come. Favourable domestic conditions and an increasing demand among Czech and foreign investors for apartment buildings makes Prague one of the best locations for finding investment opportunities. We have 40 years of global experience and a long-standing presence in the local market, ensuring that Prague’s four Engel & Völkers departments – Commercial Sales, Residential Sales, Office Rentals and Residential Rentals – will provide you with the high-quality comprehensive services you need, whether you intend to keep your property as a source of rental income or sell your apartments separately.

Price margin of flats in good location*

Purchasing power in 2019

25,000 21,200

Prague Czech Republic

12,327 9,464

EUR/sqm

20,000 15,000 10,000 5,000 0

8,500

15,000

Berlin Germany

22,180 24,000

8,300

Munich Germany

24,000

8,700

4,000

4,000

Prague

Berlin

7,500

32,594

43,298 39,789

Zurich Switzerland Munich

0

Zurich

*Good location in the first half of 2019 (adjusted for outliers) Source: Engel & Völkers Commercial

Residential Real Estate Market Report 2019/2020 · Prague

City Source: MB-Research

10,000 Country

20,000 30,000 EUR/capita

40,000

50,000

Prague - locations and selling prices of residential real estate Good location

Average location

Basic location

6,500 – 17,000 EUR/m2

4,000 – 8,500 EUR/m2

3,600 – 5,200 EUR/m2

3,200 – 4,800 EUR/m2

Waters

Commercial area

601

8

Praha 7

Green area

© Engel & Völkers Commercial

Prime location

Praha 9

Praha 8

Praha 6

VLTAVA

7 6

12

Praha 3

Praha 1

601 5M

Praha 2

Praha 17

Praha 10 29

Praha 5

Praha 4 E55

Praha 13

8

Map section Prague

600 29

Prices and rents of residential real estate in Prague 2017

2018

2019 *

Rental price of flats

17.00 – 36.00

17.00 – 36.00

17.00 – 36.00

in EUR/m2

13.00 – 18.00

13.00 – 18.00

13.00 – 18.00

11.00 – 15.00

11.00 – 15.00

11.00 – 15.00

9.00 – 14.00

9.00 – 14.00

9.00 – 14.00

6,000 – 16,000

6,000 – 16,000

6,500 – 17,000

4,000 – 6,400

4,000 – 6,400

4,000 – 8,500

3,600 – 4,800

3,600 – 4,800

3,600 – 5,200

3,200 – 3,600

3,200 – 3,600

3,200 – 4,800

Selling price in EUR/m2

Source: Engel & Völkers Commercial

Forecast

* First half of 2019

P

rague is becoming attractive by European standards. There are many reasons for this positive develop­ ment: political stability, the city’s almost completely undamaged historic buildings, favourable legal conditions for landlords, lack of new housing to keep up with the current population growth, increasing number of tourists, significant rise in rents and an average local income that offers great potential for future growth compared to other European countries. It is worthwhile noting that the Prague market will catch up with those in similar cities, such as Munich, Vienna and Zurich.

Andreas von Schlik, Engel & Völkers Commercial Prague Residential Real Estate Market Report 2019/2020 · Prague

All information has been compiled with the greatest possible care. The provided information regarding the site and market development refer to: Population (31.12.2018, CZSO), purchasing power (2018, MB-Research). We cannot accept any liability for the accuracy and completeness of this information. We shall not be held responsible for damage of any kind whatsoever incurred either directly or indirectly through the use of this information, with the exception of liability for intent or gross negligence. Last update of information and data published: September 2019. Duplication only with reference to source. Source: Engel & Völkers Commercial GmbH

ENGEL & VÖLKERS ∙ Commercial Prague Česká EuV Commercial s.r.o.

Janáčkovo nábřeží 1101/23 · CZ-150 00 Praha 5 Phone: +420 233 091 011 http://www.engelvoelkers.com/cs-cz/praha