Foreigners in Prague: Is the Czech housing market ready for 1 million residents by 2050?
1. The growth of foreign residents in Prague
In recent years, Prague has seen a significant increase in foreign residents. Today, foreigners in Prague represent about 25% of the population, approaching 400,000 people. According to estimates, the number could reach up to 1 million by 2050. Most come from countries such as Ukraine, Russia, Slovakia, and Vietnam, but communities from Bulgaria, India, the Philippines, and Italy are also growing. In 2025, there are around 6,400 Italians living in the capital, with the Italian community expected to grow further. This expansion raises a key question: is the real estate market ready to offer enough homes for sale in Prague that are accessible to everyone?
2. The challenge of the housing market
According to Dr. Zdeňka Havlová, Prague is not building enough housing to meet the growing demand. To accommodate the annual influx of new foreign residents, at least 10,000 apartments per year would be needed, with particular attention to affordable housing. Major projects include Smíchov City and the redevelopment of the Žižkov freight station, which will add thousands and tens of thousands of new apartments. However, demand may still outpace supply. Foreign buyers tend to prefer small apartments, both as investments and for long-term rentals, contributing to rising prices. To learn more about price trends and studio apartments in Prague, you can read our article on the rising prices of new apartments in Prague.
3. Foreign ownership and short-term rentals
There is no precise data on how many properties in Prague are owned by foreigners, but some estimates suggest that short-term rentals make up a notable share of the market. Airbnb apartments account for about 1% of total housing, but in central districts this share can reach 10%. As Havlová explains, “authorities can already verify whether apartments are legally designated for commercial rentals and enforce existing rules, while Parliament is discussing broader regulatory powers for cities.” These measures could make the housing market in Prague more accessible and stable for new foreign residents.
4. Urban infrastructure and sustainable mobility
The growth in foreign residents brings logistical challenges, particularly related to traffic and transportation. Expanding road capacity does not solve the problem: more space tends to attract more cars. One possible solution is the 15-minute city model, where schools, shops, parks, and healthcare services can be reached on foot, by bicycle, or by public transport within 15 minutes. This approach reduces pressure on infrastructure, improves quality of life, and supports sustainable urban development, essential for welcoming a steadily growing population of foreign residents in Prague.
5. Economy, work, and integration
The increase in foreign residents supports both the local and national economy. Although unemployment in Prague is very low, many positions are still available, especially in sectors such as construction, cleaning, and hospitality, which are less attractive to the local population. The arrival of new foreign residents helps fill these gaps but also requires investment in homes for sale in Prague and adequate infrastructure. The city is seeking national and international funding to strengthen housing, transportation, and services, preparing to become an increasingly international and welcoming capital.
