Hello,

I am thinking of getting a properties in Prague, either Prague 1 or 2 and I need an advise. What are the best size apartment to rent out? I was think either to get a bigger one (around 100/120 m2) or two smaller one.

What do you think?

If you are buying the apartment as a rental investment, it would be best to steer clear of Prague 1 and 2 as these areas are overpriced and you wont be able to cover mortgage costs with rental income. Even if you were planning on doing short holiday lets, the market is fairly saturated.

Other areas like Prague 5 or 7 would make more financial sense if you can buy near a business district or shopping centre.

Hi Doug, thanks for the advise.

Again to my original question, what are the best size to buy on order to rent them out?

If you are aiming at typical Czech rental market, as opposed to holiday lets or corporate rentals, I'd say 2 smaller ones of 50m/2 with 2+1 layout (2 rooms + separate kitchen). Czech people often share a rented flat to save money, and will live in one room, and not expect a living room as we do in the UK. A 2+kk (open plan kitchen), will limit your options.

Typically rents for a studio or 1 room flat are 10,000czk/month, and for a 2+1 15,000czk/month. And you can get these rent prices in Prague 2...I have a friend living there paying just 10,000czk for a 2+kk opposite a very nice park in the centre of Prague 2.

Thanks, it is a very little return considering that in Prague 2 is about 4000€ per m2. I might have a look in Prague 5 and 7
as you suggested. Do you think that the rent is approximately the same as in Prague 2?

yes the rental prices dont seem to vary much between well located areas. The purchase prices however are considerably different. A 2+1 in in older building in Prague 7 could be got for 2,600,000czk. In Prague 2 its over 5,000,000

Hi Doug

I put an offer in on a flat in Prague 9 - nice building 2+1 and am only now about to complete on it. But very worried that

a) that rent wont cover the repayment and that b) if I ned to sell in a hurry no one out there

also its a flat and value might drop

my gut feeling is to pull out but there will be a penalty

Any views?

Steve, I cant really comment on how much your flat will rent for. If its got a parking space, is in a good location, and is new then it'll probably get a premium over the average. Some parts of Prague 9 are very nice.