The Czech economy is stable and growing, and the unemployment rate is very low. It is one of the reasons why real estate prices continue to rise. Currently, the property prices are high both for renting and buying. Despite this fact, there is a lack of flats in Prague, and you need to be patient when searching for your dream home. According to real estate developers, the situation will change, and prices will decrease. But it will take a few years.
Prague's real estate market
Property prices in Prague have increased significantly in recent years. On average, apartments are now more expensive than comparable properties in cities such as Berlin, Madrid, Reykjavik, and Milan, despite the fact that average salaries in Prague are lower than in those cities. At the same time, housing supply remains limited, which keeps prices high. Finding a suitable property can take time, but it is still possible with patience and flexibility.
How much does a property in Prague cost?
Property prices in Prague vary a lot by district, building type, and whether the flat is new or older. Recent real estate data puts the average prices in Prague at about 140,000 CZK (about 鈧�5,800) per m虏. Prices are higher for new developments at roughly 166,600鈥�171,700 CZK per m虏, with the most expensive districts well above the city average.
At the district level, central areas are still the priciest. Prague 1 and Prague 2 sit at the top, while the outer districts tend to be cheaper. As a rough guide, a 鈥渢ypical鈥� 60 m虏 apartment at around 145,000 CZK per m虏 comes out to about 8.7 million CZK (around 鈧�359,000). Neighborhoods such as Karl铆n (Prague 8), Hole拧ovice (Prague 7), and the And臎l area in Sm铆chov (Prague 5) have become popular in recent years, and prices are climbing rapidly.
Procedures and fees for buying property in Prague
Once you've found your dream property in Prague, the next step is to agree on the key terms with the seller. This includes the purchase price, payment schedule, deposit amount, and who will cover legal and administrative costs. It is important to clarify these details before signing anything.
The buying process usually involves several documents: a reservation agreement, a deposit agreement, and the final purchase contract. These contracts should be reviewed carefully. It is strongly recommended to have them checked by an independent lawyer to avoid future disputes.
A deposit is typically required and often ranges between 10% and 30% of the purchase price. After the purchase contract is signed, the remaining funds are usually placed in escrow, where they are held securely until ownership is officially transferred. The seller then submits the application for transfer of ownership to the (Cadastral Office). The registration process generally takes around 30 days. Additional fees will include:
Cadastral registry fee: Around 1,600鈥�2,000 CZK, depending on whether you file electronically or in person
Legal fees: Most buyers hire a lawyer to review contracts. Legal costs are typically around 1% of the property price.
Annual property tax: After purchase, owners must pay property tax each year, calculated based on the land and building value, and paid to the local tax office. This is calculated depending on the area where the property is located.
Good to know:
The old real estate acquisition tax (4% of the purchase price) was abolished in 2020, so buyers no longer pay this tax at closing.
Foreign nationals can buy property in the Czech Republic, and there are no major restrictions based on nationality. The same rules generally apply to Czech citizens, EU citizens, and non-EU citizens. However, buying property does not automatically grant you the right to live in the country. If you plan to stay long term, you must still meet the appropriate visa or residence requirements.
Real estate agencies in Prague
For foreigners, using a real estate agency can make the process much easier. Agencies help identify suitable properties, arrange viewings, coordinate communication with the seller, and assist with the paperwork. They often work closely with lawyers and notaries to help streamline the transaction. In the Czech Republic, the real estate agent's commission is usually paid by the seller, not the buyer. This means that working with an agency does not typically increase the purchase price for you as a buyer.
When choosing an agency, always check reviews and references. Before signing any agreement, read it carefully and make sure you understand the terms. Reputable agencies can provide documentation or communication in English.
If you want to avoid real estate agencies and search for a property on your own, you can use Bez Realitky, a website where sellers post directly. However, this can make the process harder unless you speak Czech. For higher-end options, Svoboda & Williams is a well-known agency specializing in luxury properties.
How to get a mortgage from a bank in the Czech Republic
Foreign nationals can get a mortgage in the Czech Republic, but the rules and conditions vary depending on your residency status, income, and the bank you choose. Most banks will expect you to have a stable and verifiable income, often from employment in the Czech Republic. You will need to prove your ability to repay the loan, including providing recent payslips, tax documents, and bank statements.
Banks commonly lend up to about 70鈥�80% of the property's value. You should plan on a 20鈥�30% down payment from your own funds. Use to get an idea about the installments and the length of the mortgage.
Another option is to work with a private mortgage broker. Brokers don't charge you directly. Instead, they are paid a commission by the banks for bringing them clients. A good broker can compare offers, identify banks that may be most flexible with your situation, and help you prepare the required documents.
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