Where investors in Prague earned the most – and where prices barely kept up with inflation
- Jan Halik
- 6 days ago
- 2 min read
The Prague real estate market is often described as a single whole. In reality, however, the differences between individual neighborhoods are significant. A five-year price development shows that while some areas have become exceptionally profitable for investors, others – despite being considered prestigious addresses – have grown only very modestly.
Overall, realized apartment prices in Prague have increased by approximately 48.6% over the past five years. This average, however, conceals extremes that are crucial for investment decision-making.
🚀 Emerging neighborhoods have outperformed traditional addresses
The strongest price growth did not come from the historic center or from the city’s traditionally most expensive locations. Instead, neighborhoods that five years ago were still perceived as a reasonable compromise between price, accessibility, and quality of living have performed significantly better.
Modřany recorded an increase in realized prices of more than 80%, followed closely by Braník and Libuš. The common denominator is ongoing development, improving infrastructure, and relatively lower entry prices in the past.
🧱 Premium locations and their natural limit
At the opposite end of the spectrum are neighborhoods that already ranked among the most expensive in Prague five years ago. In areas such as Podolí or Střešovice, price growth has been noticeably slower and in some cases only slightly above the level of inflation.
In premium locations, the potential for further dynamic growth is limited. Prices are increasingly constrained by buyers’ purchasing power, and investment potential gradually diminishes. These areas remain highly attractive for owner-occupied housing, but from a return perspective they no longer offer the same level of appreciation as emerging parts of the city.
📐 Price per square meter: prestige vs. investors and growth dynamics
A look at the development of price per square meter highlights these differences even more clearly. While some outer neighborhoods of Prague have seen growth of tens of percent in this metric, the historic center – including the Old Town – has recorded one of the slowest growth rates from an investor’s perspective.
The Old Town remains the most expensive address in Prague, but when it comes to growth dynamics, investors clearly favor younger and developing neighborhoods.
💡 Conclusion: returns are created before a neighborhood is “finished”
The overall five-year growth of the Prague market confirms that real estate remains a strong store of value. However, if the goal is above-average appreciation, correct timing and location selection are key.
The highest returns are consistently generated in areas where the city is still developing – where new construction, infrastructure, and a shift in perception are taking place. Investments in already established luxury neighborhoods offer stability, but only limited growth.
Source: https://blog.valuo.cz
Jan Halík
Real Estate Agent
📞 +420 603 377 791
RE/MAX Atrium
Podolská 811/138
140 00 Praha 4 – Podolí
