Real Estate Investments in Prague: Expected Growth in 2026

A More Selective Market for Investors

Real estate investments in Prague continue to attract interest from both local and international investors in 2026. After a particularly strong 2025 for the Czech capital’s property market, experts predict more gradual but stable growth in the coming years. According to the 2026 Trend Report published by the Real Estate Market Development Association (ARTN), investment volumes in the sector could rise by 1% to 10% this year. Prague’s real estate market therefore remains dynamic and appealing, especially for those considering property purchases as long-term investments.

In recent years, the market for properties for sale in Prague has attracted increasingly significant capital. However, investors are becoming more selective in their choices. Today, it is not enough to simply purchase property; the focus is on identifying high-quality assets with strategic locations and strong potential returns.

Investors tend to favor apartments located in central neighborhoods or well-connected areas. This trend is also evident in the second-home market, where a growing number of buyers choose Prague not only as a place to live but also as a long-term investment opportunity. You can read more about this topic in our dedicated article.

Rising Apartment Prices in the Capital

Compared to other regions of the Czech Republic, Prague continues to experience stronger price growth. Forecasts indicate that prices for new apartments could increase by 5% to 10%, while in other regions growth is expected to remain below 5%.

In 2025, Prague saw its highest level of property sales in recent years, accompanied by a significant rise in apartment prices, particularly in central areas. Prague 1 and Prague 2 remain among the most attractive districts for investment, despite high prices. The average cost of apartments in these areas has reached approximately 210,000 Czech crowns per square meter, while in more peripheral districts, such as Prague 9, the average price drops to around 152,000 CZK/m², making these areas more accessible for those entering the capital’s property market.

The Rental Market Leads the Way

One of the most appealing segments for real estate investors in Prague is the rental market. Housing demand in the capital remains very high, while the supply of new properties is growing more slowly. Increasingly, investors are directing their capital toward rental properties. In particular, interest is growing in institutional rental housing—residential complexes managed by real estate funds or companies specializing in rental management. Experts predict that this type of project could account for 10% to 20% of new construction in the coming years.

Limited Supply and Future Outlook

Despite the growth in real estate investments, Prague’s market continues to face strong pressure between supply and demand. The number of new residential projects is still insufficient to fully meet housing demand, particularly in the capital. One of the main obstacles to market development remains the slow approval process for building permits. Without faster legislative procedures, the supply of new housing is unlikely to grow enough to reduce the gap between prices and rents.

Nevertheless, prospects remain positive. Thanks to economic growth, steady housing demand, and market stability, Prague continues to be one of the most attractive destinations for real estate investment in Central Europe, attracting both capital and new residential projects in the coming years.

Reference: https://www.e15.cz/byznys/reality-a-stavebnictvi/najmy-potahnou-re