This is shown by a newly released analysis from one of the leading real estate platforms, which points out that investments in the BTR segment now account for roughly a quarter of all activity on the investment market. Given that in 2025 the figure was still around 2.4%, this represents an unprecedented year-on-year growth of roughly tenfold!
BTR, students and co-living
For large institutional investors, the build-to-rent segment, i.e. flats built (and usually furnished right away) with the specific intention of offering them on the rental market immediately, is a highly attractive opportunity. Projects comprising more than 50 properties currently account for over 4,000 BTR units in operation, with others found in smaller apartment buildings or in the hands of retail rather than institutional investors.
Just bring your toothbrush and move in – BTR flats are often let fully furnished
When it comes to institutional rental housing, build-to-rent flats make up roughly two thirds of the entire supply. The rest consists of student housing, for which there has long been strong demand in Prague (especially for accommodation whose quality matches modern flats rather than outdated university dormitories), as well as so-called co-living.
Construction at full speed
Investors’ portfolios will soon grow by several thousand more BTR flats, however. In the capital alone, over 2,200 BTR units are currently under construction (or being refurbished), with the largest share going up in Prague 5. This is undoubtedly driven above all by the massive development at Smíchov City, the transformation of the brownfield site of the former freight railway station in the district of the same name.
The analysis further shows that with BTR units landlords can enjoy almost one hundred percent occupancy. The market is far from saturated and the missing percentage points are the result of natural tenant turnover, for example among expats from abroad who return home as planned or move on to another work assignment.
The advantages of the BTR segment include premium property quality and generally more solid applicants
The average yield on BTR properties is roughly 20% higher than on standard rentals. This is mainly due to the quality standard and the fact that the vast majority of build-to-rent flats are located in new developments in Prague’s wider city centre.
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