Prague Surpasses Berlin and Rome: Why the Czech Capital Has Become Europe’s New “Safe Haven”?
New data reveals an amazing picture: Prague is no longer Europe’s “cheap little sister,” but a real estate powerhouse leaving Western capitals in the dust. For the Israeli investor, this surge isn’t just a statistic, it is a signal for an opportunity to invest in a city of stability and rigid demand.
If until a decade ago we were used to thinking of Prague as a cheap vacation destination or a speculative investment in “developing Eastern Europe,” the years 2024-2025 have shuffled the deck. A current table of global real estate prices places Prague at 33rd place worldwide in price per square meter as of this writing, surpassing historical Western capitals.
But what lies behind the numbers, and why does this specific rise make Prague a more attractive investment destination than ever? We went out to investigate.
The Turnaround: Prague VS Western Europe
The key figure that should catch every investor’s eye is the relative ranking. Prague (with approx. $10,061 per sqm in the city center) is now more expensive than:
- Berlin (40th place, $9,033 per sqm)
- Madrid (43rd place, $8,844 per sqm)
- Rome (44th place, $8,820 per sqm)
Why is this good for investors? Prague’s 3 Growth Engines
At first glance, a high price might be deterring. But from an investor’s perspective, prices in Prague reflect a supply market failure which acts as an “insurance policy” for preserving asset value.
1. The Bureaucracy Working for You (Supply Shortage)
The main reason for the price surge is the unimaginable difficulty in obtaining building permits in Prague. According to World Bank reports and Deloitte data, the licensing process in the Czech Republic is among the slowest in Europe (can take 5-7 years).
The implication for the investor: There is no “flooding” of apartments. Supply is always lower than demand, which maintains high prices and prevents sharp value drops seen in other cities.
2. The Boiling Rental Market
According to the latest Deloitte index, Prague is the second or third least affordable city for local residents in Europe. An average Czech needs about 13-15 gross annual salaries (full) to buy an apartment.
The implication for the investor: Locals cannot buy, so they must rent. This ensures a strong, stable rental market, and rigid demand that doesn’t disappear even when interest rates rise.
3. Long-Term Performance
While markets in Germany experienced a downward correction in the last two years, the Czech market showed extraordinary resilience and returned to price increases faster. The Eurostat graph shows a consistent rise of tens of percents over the last decade, well above the European average.
The Table That Doesn’t Lie: The Decade That Changed Prague
To understand the magnitude of the opportunity (and the fact that Prague is catching up to the West), here is a comparison of Prague’s ranking and prices over the last decade:
| Year | Market Status | Avg Price per SQM (Est.) | Global Trend |
|---|---|---|---|
| 2015 | Emerging Market | $3,200 | Considered a cheap opportunity then. Prices were 50% lower than Berlin. |
| 2019 | Growth Surge | $5,100 | Begins to surpass Eastern European capitals (Warsaw, Budapest) by a significant margin. |
| 2022 | New Peak | $7,500 | Surpasses Western European cities in cost of living for the first time. |
| 2025 | Another Peak | $10,061 | Surpasses Berlin, Madrid, and Rome. Positioned as a premium market. |
In the published table, Tel Aviv still stars in 8th place globally ($20,412 per sqm) and Jerusalem in 11th place.
For the Israeli investor, Prague currently offers simple and winning mathematics: with an entry price standing at only about half of the parallel prices in Tel Aviv, you are entering a powerful market that has already surpassed classic capitals like Berlin and Rome—winning proof of its economic resilience. This combination, together with a chronic shortage of apartment supply creating a safety net for asset value preservation, turns the investment in the Czech capital from a speculative bet into the most “Stable Stock” and solid asset in your European investment portfolio. Contact us and we will be happy to help you purchase your next property in Prague.
