Foreign investors are increasingly discovering the Czech real estate market – demand for flats is rising, especially in Prague and Brno. In addition to new builds in central locations, older prefabricated flats on the outskirts of cities are also coming into focus.
Demand for housing in the Czech Republic remains high – and an increasing share of this demand is coming from abroad. According to the news channel ČT24, foreign buyers are showing growing interest in flats, particularly in Prague and Brno.
One example of the ongoing construction boom is the Smíchov district in Prague, where around 3,000 flats are currently under development. Demand is high – and not only among Czechs. “The proportion of foreign buyers is currently around 27 percent,” Michaela Koudelová, Head of Sales at Svoboda & Williams, told the news channel. Inner-city districts such as the Old and New Towns, Vinohrady and Dejvice are especially sought-after.
Older Prefabricated Buildings Also Attracting Interest
While new developments remain in the spotlight, estate agents report growing interest in older apartment blocks from the socialist era. In this segment, the proportion of foreign buyers is around ten percent – particularly Slovaks, Vietnamese and Ukrainians.
The First Wave Came After the Fall of Communism
The real estate boom driven by foreign buyers began immediately after the Velvet Revolution, when prices in the Czech Republic were far below those in Western Europe. Initially, Italian investors dominated the market – especially in Prague districts such as Vinohrady, where flats were significantly cheaper than those in Rome, for example.
Today, it is more often private individuals who are buying property in the Czech Republic – including older people looking to spend their retirement there. And the focus has long since expanded beyond the major cities: in border regions such as northern Bohemia, property purchases by German retirees are on the rise.
