Where to buy an investment apartment in Prague: locations and floor plans that earn

Two investors each spend ten million crowns on an apartment. A year later one earns 330,000 CZK in rental income – the other earns 1,200,000 CZK. Same investment, four times the difference. How? The answer has nothing to do with luck. It comes down to two things most buyers overlook before they even open a spreadsheet.

Investment apartment Prague location – that is the first factor that matters. The second is the floor plan. And that is exactly where most investors make a costly mistake.

Why purchase price does not equal rental yield

Here is the paradox. Two apartments in the same neighbourhood, similar size, similar purchase price – and completely different results. One owner receives 27,500 CZK per month, the other 62,500 CZK. The difference is not what they paid. It is the floor plan, the number of guests the apartment accommodates, and the type of guest it attracts.

That is why looking at an investment apartment in Prague requires two questions at once: where to buy and what to buy. Both decisions matter.

Rule 1: location sets the ceiling on your yield

Prague is not one market. It is a patchwork of neighbourhoods with very different demand, nightly rates and year-round occupancy. The closer to the centre, the higher the average nightly rate – and the stronger the occupancy during the off-season.

From our 19 years of practice – managing 130 apartments with over 45,000 reviews – one rule holds consistently: an apartment in Prague 1 commands a significantly higher average nightly rate and higher occupancy than the same floor plan two metro stops away. Year-round demand from the centre never disappears. Tourists, families on city breaks, business trips – central Prague is a destination all year. The seasonal dip is far shallower here than on the outskirts.

The further from the centre, the more yield depends on the summer season. That directly affects average annual occupancy – and therefore annual income. A full July is not enough. What matters is what the apartment earns in November.

Prague 1 – Staré Město: the top of the yield map

Staré Město is the best location for short-term rental in Prague. That is not a subjective view – it is what the portfolio shows. Guests pay a premium for proximity to Charles Bridge, Old Town Square and Josefov. Nightly rates are the highest in the city and demand is year-round.

An apartment in Staré Město that we manage – 62 m², 2+1, art deco interior – generates approximately 87,500 CZK gross per month. Over one million crowns a year. Occupancy exceeds 85%. We target tourist groups for whom walking distance to the main sights is the deciding factor. The apartment was fully renovated in 2017 in a Gothic building listed on the Czech cultural heritage register – its location and character are unique.

Prague 1 broadly – not just Staré Město – is the strongest address class. Nové Město in the same district reaches 1,200,000 CZK per year in our portfolio, i.e. 100,000 CZK per month. That 3+1 apartment of 100 m² with an infrared sauna for 6 and capacity for 12 guests is a clear example of what the right floor plan in the centre can achieve. Reducing the booking lead time from 14 to 5 months drove a 15% revenue increase.

Vinohrady and Žižkov: solid alternatives with a lower ceiling

Vinohrady (Prague 2) is the first choice for investors looking for a more accessible entry point with reasonable yields. The neighbourhood has character – cafés, Art Nouveau architecture, a calmer feel compared with the tourist centre. Guests tend to be couples and families rather than large groups.

Our apartment in Vinohrady – 65 m², 3+1, art deco, occupancy above 80% – earns approximately 55,833 CZK per month. That is 670,000 CZK per year at an average nightly rate of 9,000 CZK. A solid figure, but roughly a third below a comparable Prague 1 property. Vinohrady works best for couples and families seeking a quieter base away from the tourist centre – which is why 2+1 and 3+1 floor plans outperform small studios here.

Žižkov (Prague 3) is about location accessibility and entry price. The average nightly rate is lower – we see 7,000 CZK for a minimalist apartment in our portfolio. But well-configured larger apartments for groups generate 62,500–67,500 CZK per month, which is 750,000–810,000 CZK per year. Average occupancy exceeds 85%. That is the performance that keeps Žižkov on the investment map despite its distance from the centre.

The smallest apartment in the portfolio, also on Žižkov – a 23 m² studio, 1+kk, mezzanine layout – earns approximately 27,500 CZK per month, or 330,000 CZK per year. Excellent on a per-square-metre basis. But in absolute terms, a fraction of what larger apartments in the same neighbourhood deliver.

Karlín and Smíchov: rising neighbourhoods

Karlín has transformed over the past decade from a modest working-class district into one of Prague's most sought-after addresses. New developments, restaurants, offices – short-term rental demand is growing. Property prices have risen too, so entry costs reflect that. Smíchov follows a similar story – the Smíchov Station development is reshaping the entire neighbourhood.

If you are interested in new projects in Smíchov that combine residential appeal with investment potential, see Smíchov development projects – we track the current offer there.

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Rule 2: floor plan matters more than you think – and the relationship is not linear

This is the part that surprises most investors.

Intuition says: bigger apartment = bigger investment = proportionally higher yield. That is not how it works. The relationship between apartment size and yield is non-linear – and the advantage goes to larger floor plans.

From our practice: a 3+kk or 3+1 apartment earns approximately 100,000 CZK per month. A 1+kk earns approximately 25,000 CZK per month. A fourfold difference in yield – even though a 3+1 in the same neighbourhood does not cost four times as much as a 1+kk. Typically two to three times more. On a gross return basis, the larger apartment wins. Every time.

Why? Larger apartments attract groups and families. They pay for the whole apartment, not per room – and they pay more because they split the cost between several people. For five friends, 8,000 CZK per night for a five-bed apartment is excellent value. Each person pays 1,600 CZK – less than an average hotel room. Supply of apartments for 8–12 guests is limited, competition is low and nightly rates hold up.

The advantage of a larger floor plan is therefore twofold: a higher nightly rate and higher occupancy, because groups typically book longer stays.

Indicative yields by floor plan

The figures below come from Investerra's live portfolio in Prague. They are indicative – the actual result depends on location, apartment condition, season and management quality.

The difference between a studio and a 3+1 is fourfold in absolute yield – while the purchase price is typically two to three times higher, not four. On a gross return basis, the larger apartment wins. The 2+kk figures are indicative estimates derived from the portfolio – actual results depend on the specific location and occupancy.

What to look at next: condition and renovation

Location and floor plan are two of the three variables. The third is the condition of the property – and that is a topic in itself. How to evaluate a specific apartment, what to look for during a viewing and how to assess renovation costs is covered in our article How to choose an investment apartment in Prague. This article deliberately does not repeat that content – here we focus on the numbers from locations and floor plans.

For a comparison of short-term and long-term rental, see Short-term vs. long-term rental: which pays more. And if you are looking for specific properties for sale, browse our current apartment listings.

Where to start: let us run the numbers on a specific apartment

Prague 1, floor plan 3+kk or larger – that is the combination with the highest potential. But every apartment is different. Condition, floor, window orientation, building specifics – all of it affects the final number.

After 19 years managing 130 apartments, we know which properties deliver and which disappoint despite a good address. We are not agents – we are managers who see the monthly yield with their own eyes. If you are looking for an investment apartment in Prague – or you already own one and want to know what it can realistically earn – we are happy to work through the numbers together.

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