Where are the cheapest apartments in the Czech Republic: a review of affordable housing in 2025

The real estate market has long been perceived as a safe haven for capital. However, behind the facade of apparent stability lies a multitude of false beliefs that distort perception and lead to erroneous decisions. The mirage of easy profit, “ever-rising prices,” and “rent that feeds” remains resilient, although reality dictates different rules. To eliminate risks and assess real prospects, a deep understanding of mechanisms is required, rather than following common templates. Exposing the most persistent myths about real estate investments helps to form a sound approach to planning and avoid costly mistakes.

Myth #1. “Real estate investments are the most reliable investments”

The deception begins with the term “always.” Even such defensive assets as apartments and commercial premises depend on dozens of variables: from the Central Bank’s credit policy to the state of engineering networks, from demand dynamics in the area to the political situation in the region. Prices for apartments in Sochi, Surgut, or Yaroslavl may not only stop but also decline in the face of oversupply or a change in regional development strategy.

In Moscow, from 2014 to 2017, the secondary market showed negative dynamics: price reductions reached 15% in ruble equivalent, despite the influx of migrants and an increase in rental demand. This proves that price stability is an illusion, not a market law. The mirage of stability turns into stagnation, loss of liquidity, and rising maintenance costs, especially in the case of improper location.

Myth #2. “Renting out an apartment always provides passive income”

Counting on carefree income without considering expenses is a strategic mistake in the context of myths about real estate investments. Owning a property obliges covering utility bills (on average from 4,500 to 8,000 rubles per month for a standard two-room apartment), contributions to major repairs, property tax (0.1–0.3% of the cadastral value), repair works, and, if necessary, services of a management company. For an apartment worth 8.5 million rubles in a business-class residential complex, monthly obligations easily exceed 20,000 rubles.

If the rent brings in 55,000 rubles per month, and vacancies between tenants amount to up to 2 months a year, the actual profitability decreases to the level of a bank deposit—not exceeding 4–5% per annum. Additionally, the tax burden increases after the cancellation of tax deductions starting from 2023. To make a profit, an investor must plan carefully, not rely on the illusion of a “feeding apartment.”

Myth #3. “Real estate prices always rise”

The myth of real estate investments is deeply rooted, especially in post-Soviet mentality. However, the numbers tell a different story. In St. Petersburg, from 2022 to 2023, growth rates for new buildings slowed to 1.8% per year, and for certain segments, including apartments, a decline of up to 7% was recorded. Such declines are typical for overheating or stagnation phases when the market transitions from expansion to consolidation.

Negative dynamics are also observed in monocities, where dependence on major enterprises leads to price volatility. In Novotroitsk, Ussuriysk, Kopeysk, apartments lose up to 30% of their value in 3–4 years with a decrease in population and the closure of plants. The hope for an “ever-rising apartment” is not justified in the face of deteriorating infrastructure and declining migration attractiveness.

Myth #4. “Commercial real estate is always more profitable than residential”

Income level is not the only indicator. Risk coefficient and liquidity are more important. Retail premises in street retail can bring in 10–13% per annum, but remain illiquid in case of the tenant’s business closure. The COVID-19 pandemic showed how quickly an income-generating asset turns into a vacant property that requires payment for maintenance, security, and electricity without any income.

In 2021, in Moscow, over 3,400 vacant premises were recorded on the ground floors of residential complexes, with more than 27% remaining unoccupied for 8 months. Even premium spaces in the “Moscow City” towers stood empty, losing up to 15% of their value per year. Additionally, taxes and depreciation increase. The attractiveness of income turns out to be deceptive if the risk of changing the trading format, closing small businesses, or shifting traffic online is not considered.

Myth #5. “Investing in new developments brings quick profits”

Betting on price growth at the excavation stage works only with a precise understanding of the market. However, since 2021, developers are moving towards dynamic pricing: speculative markups are already included in the initial cost. At the same time, the delivery date may be delayed by 6–12 months, especially for small developers.

Out of 278 residential complexes delivered in Russia in 2023, over 40% delayed commissioning, and 16% froze construction altogether. Such risks undermine the calculation for quick resale. Additionally, increasing mortgage rates and a decrease in demand due to oversupply further reduce profits. Without a clear understanding of the segment, area, developer, and legal conditions, participation in shared construction becomes not an investment opportunity but a risk.

Myth #6. “Investing in foreign real estate is a guaranteed insurance”

The stability of foreign markets is another myth about real estate investments, especially in Turkey, the UAE, Bulgaria, and Georgia. Buying apartments in resorts is often accompanied by hidden restrictions: inability to obtain permanent residency, resale limitations, high maintenance fees, and double taxation.

In Dubai, average maintenance fees exceed $3,500 per year for a 60 m² apartment. Additionally, non-residents face strict tax reporting rules, obligations for annual registration renewal, and property rights documentation.

Furthermore, investors face currency fluctuations, capital withdrawal restrictions, and in case of sanctions pressure, transaction blocking. Outside the EU, the “first buy, last out” rule applies—during unstable policies, it is most difficult for a foreigner to sell the asset.

Myth #7. “Real estate income is higher than from banking instruments”

Comparing with deposits is not always appropriate. Rental yield averages 3.7–5.2% per annum in Russia after deducting all expenses. Deposits in Russian banks offer a rate of 14–16% with interest capitalization, full insurance, and minimal risks.

Financial instruments do not require maintenance, time for management, interaction with tenants, and legal actions. Returns on OFZs (Federal Loan Bonds) and mutual funds also allow forming a passive portfolio without burdens. Only professional analysis allows comparing risks and benefits and choosing a strategy based on the horizon and goal.

Main expenses that novice investors overlook:

1. Monthly utility payments—ranging from 5,000 rubles in regions to 20,000 in major cities.
2. Property tax—0.1–0.3% of the cadastral value.
3. Depreciation repair—starting from 50,000 rubles annually.
4. Management company commissions—8–12% of the rent.
5. Vacancies between tenants—up to 90 days per year.
6. Insurance—7,000–15,000 rubles per year.
7. Costs for finding a tenant and contract formalization—up to 1 month’s rent.

Discipline Instead of Belief in Real Estate Investment Myths

Investing in real estate requires not trust in myths but accurate calculation and balanced analysis. Careful study of costs, market conditions, risks, and goals helps to avoid traps and preserve capital. Myths about real estate investments distort perception, replace logic with intuition, and lead to mistakes. Only by rejecting generalizations and focusing on numbers can real estate be transformed into a growth tool, not a source of losses.

The property market in the Czech Republic is developing on an upward trend. The average annual price growth for flats in Prague reaches 8-10%, which provides attractive returns for investors. The niche is distinguished by a stable economy, which minimises risks and makes investments more secure. For example, the cost of a square metre in Prague in 2023 was about 4,500 euros, which is significantly lower than the prices of similar properties in Berlin or Vienna.

What makes the Czech Republic attractive to property investors

Comparing property prices in the Czech Republic and other European capitals, it is obvious that the country offers the best value for money. In Berlin, the average price per square metre is about 6,000, in Vienna – 7,500 euros. The more affordable costs make Prague attractive for both long-term investments and stable rental income.

Advantages for investors: low taxes and legal protection

The state creates favourable conditions for foreign investors. There are no luxury taxes in the country, and rates on rental income remain moderate. The Czech legal system protects the interests of investors, which makes it possible to invest in Czech property investments with confidence.

How to buy property in the Czech Republic without unnecessary difficulties

We have prepared instructions that will be helpful to you.

Step 1: Market analysis and site selection

Buying property in the Czech Republic starts with detailed market research. Prague and Brno remain the leaders in demand among foreign investors due to their developed infrastructure and high quality of life. It is important to consider the potential for future growth in the value of the properties, transport accessibility and the level of security of the neighbourhood.

Step 2: Due diligence and conclusion of the contract

Buying a property involves drawing up a preliminary contract. Before signing it, it is necessary to inspect the property to make sure that there are no encumbrances or illegal constructions. Lawyers and notaries in the Czech Republic provide reliable support at every stage of the transaction.

Step 3: Mortgage and financing

Czech banks offer favourable mortgage terms for property in the Czech Republic. Interest rates vary from 2% to 3%, which makes the loan favourable even for foreign citizens. To obtain a mortgage, you will need to prove your income and pass a credit check. This is a great opportunity to reduce your initial investment and save some capital for other investments.

Step 4: Registering and finalising the transaction

After signing the sale and purchase agreement, the transaction is notarised and then sent for registration with the property cadastre. The process takes about a month, after which the property officially passes to the buyer. Registration with the cadastre guarantees the protection of property rights.

Step 5: Leasing and property management

Many investors consider property for rent in the Czech Republic as a way to provide passive income. Yields as high as 4-5% make the investment attractive. The management of the property can be outsourced to specialised agencies, which eliminates the need to deal with household issues and maintain contact with tenants.

Pros and cons of buying property in the Czech Republic for investors

Pros:

1. Low taxes: no luxury tax and moderate rates on rental income.
2. Stable price growth: annual increase in the cost of objects by 8-10%.
3. High rental yields: yields of 4-5% per annum.
4. Transparent legal system: state control of transactions and protection of owners’ rights.

Despite all the advantages of property in the Czech Republic for investment, the process is fraught with some difficulties. The main disadvantage is bureaucratic procedures. The purchase requires compliance with many formalities, including obtaining approvals and passing inspections. In addition, there are restrictions for non-residents on the purchase of land plots, which can make it difficult to invest money.

Property taxes in the Czech Republic and possibilities for obtaining a residence permit

You need to know about them if you are going to invest in Czech property.

Taxes on the purchase and ownership of real estate

There is an acquisition tax on the purchase, which is 4% of the value of the property. Owners also pay an annual tax, but the amount is significantly lower than in most Western European countries, which reduces the overall financial burden for investors.

How buying a property can help in obtaining a residence permit

To qualify, you must purchase the property for an amount above a certain threshold and prove a stable income. Having your own home in the Czech Republic significantly increases your chances of having your residence permit application approved.

Property in the Czech Republic for living and holidays: what foreigners choose

The Czech Republic attracts not only investors, but also those looking for a cosy place to live or relax. High level of security, developed infrastructure and affordable medicine make the Czech Republic an excellent choice for permanent residence.

Choosing holiday accommodation

Foreigners often choose property in the Czech Republic for holidays – it can be both flats in Prague and country houses in picturesque areas. Magnificent nature, proximity to European resorts and historical heritage make the Czech Republic a popular place to buy a home.

Conclusion

Property in the Czech Republic offers unique opportunities for preserving and increasing capital. Stable price growth, high rental yields and favourable conditions for foreign investors make this market one of the most attractive in Europe. Investing in Czech properties is a step towards financial independence and stability, especially in conditions of economic uncertainty.