Although the saying in the article's subtitle may be something of an oversimplification, the truth is that the larger the floor area, the harder it is to find tenants and, at the same time, rental income definitely does not grow in a linear fashion.
How much do flats in Prague rent for?
According to figures from the renowned consulting and analytics firm Deloitte, one of the so-called “Big 4”, which compiles its own Deloitte Rent Index, the average rent in Prague currently stands at exactly 400 Kč per square metre. That means a classic 30-square-metre studio flat can be offered on the market for roughly 12 thousand a month, and often considerably more, because these are precisely the flats that are in high demand. If you are interested in how rents in the capital are growing year on year according to Czech Statistical Office data, be sure to read our recent article on this topic. On the other hand, the idea that a 60-square-metre flat can simply be rented out for 24 thousand will run up against the financial limits of prospective tenants, depending of course on the location. In Holešovice, Letná or Karlín, people will most likely jump at such an offer. In outlying districts, however, even very popular ones that are still relatively expensive by Czech standards, it may be difficult to place such a flat quickly in the hands of reliable tenants.
Which investment property should you buy?
That is why it appears more advantageous to invest your savings (or money obtained through a mortgage loan), for example, in two smaller units of 1+kk to 2+kk and then offer them on the market, where they will very likely be snapped up in no time. The investment horizon for such properties, according to calculations, ranges between 12 and 15 years, and it is also one of the most stable investments, with a very low level of risk. A speciality of some developers are “1.5+kk” flats, which offer great flexibility and are designed so that you can put up a removable partition in the middle of the living room.
Have you heard of the “one and a half with a kitchenette” layout? It can be an interesting compromise
Twice as many flats means twice as much hassle and paperwork? We know that, of course. And that is exactly why we are here – our company Flat Service has been making life easier for owners and landlords for over 20 years. We offer you complete property management services, covering everything that renting out involves. From preparing the flat, taking photographs and selecting suitable tenants, through signing the necessary documentation, to arranging maintenance, repairs and cleaning of the premises.
Where are flats currently being built or planned in Prague?
If you are not looking for an investment flat in Prague's older housing stock, you will probably be searching mainly among current development projects. There are plenty of them on the market; we have taken the liberty of picking a few that caught our eye thanks to their character or location:
- SO-HO Residence in Holešovice
- The TRIO project in Radotín
- Meta Lofts living in Modřany
- The Tesla Hloubětín residential district
- ZigZag House near Stromovka
If you like the idea of buying a property to rent out without having to deal with any of the related worries, we are here for you. Call us on +420 277 000 330 or send a message to sales@flatservice.cz and we will get back to you promptly and introduce you to the Flat Service Partner and Flat Service Garant services.
