Published on and written by Cyril Jarnias
Long discreet, the market for second homes in the Czech Republic has moved to the heart of European wealth management strategies. Between the rise of remote work, booming tourism, and prices still significantly lower than in Western Europe, the country attracts both pragmatic Prague urbanites seeking greenery and foreign investors. But behind the singular label “Czech Republic” actually lie two very different real estate worlds: Bohemia to the west and Moravia to the east.
To understand the second home market in the Czech Republic, one must consider the historical divide between Bohemia and Moravia. Bohemia, centered on Prague, is wealthier, more expensive, and heavily touristic. Moravia, less prosperous and undervalued, sees its towns and countryside beginning to attract buyers, offering different opportunities.
Bohemia and Moravia: Two Geographies, Two Economies, Two Second-Home Logics
The Czech Republic is historically divided between Bohemia to the west, covering about three-fifths of the territory, and Moravia to the east, representing the remaining two-fifths. The traditional border roughly follows the watershed between the Elbe and Danube rivers. Prague, the political, economic, and tourist capital, is located in Bohemia, while Brno, the country’s second city and a major tech hub, is the great Moravian metropolis.
Bohemia’s geography structures two types of markets. On one hand, the Bohemian Massif, with its hills and mountains, is conducive to country houses, chalets, and weekend homes. On the other hand, river valleys and forested regions near Germany or Austria also attract Prague urbanites and German buyers.
In Moravia, the landscape is different: large river valleys (Dyje‑Svratka, Upper Morava), agricultural plains, proximity to the Carpathians, and karst areas, notably around the Moravský kras nature park. This morphology fosters more of a market for rural and wine-country second homes, often cheaper, in historic towns or classified vineyard landscapes.
The purchasing power in some Moravian towns, like Bruntál, represents only about 70% of the Czech national average.
This differential permeates the entire mechanics of the second-home market. Where Bohemian households can more easily dedicate a portion of their income to a weekend house or a vacation apartment, a segment of the Moravian population already struggles to finance expenses deemed non-essential like ultra-fast broadband or certain leisure activities. Indeed, second homes owned by Czechs have historically been concentrated in Bohemia, notably around Prague, in mountain regions and lake areas.
A Strained Residential Market, an Indirect Driver of the Second-Home Boom
To understand the specific dynamics of second homes, one must first look at the foundation: the overall residential market. And it is in full rebound. After a phase of stagnation or even decline in 2022–2023, prices started rising again in 2024, with national growth between 8.4% and 10.7% year-on-year. The residential price index rose by nearly 10% year-on-year in the first quarter of 2025, slightly above the pre-Covid rate.
Prices for new apartments rose by 13% year-on-year in early 2025, surpassing the 9.3% increase for existing ones. Transaction activity surged in 2024: +33.6% for overall residential sales, with growth of over 50% for new builds and about 24% for existing ones. Prague hit a record with over 7,000 new apartments sold in one year, an 80% increase from the previous year.
This surge in demand clashes with a declining supply. New construction starts remain insufficient: 36,614 new housing units launched in 2024, barely more than the previous year, and building permits fell by 6.7% that same year and by over 16% in the first five months of 2025. Permitting times are among the longest in the European Union, averaging up to nine years for complex projects.
Average number of years of gross salary needed to buy a standard 70 m² apartment in the Czech Republic, a European record.
In this context of difficult access to primary residence ownership, second homes might seem a luxury. But the phenomenon follows another logic: it is driven by affluent domestic households, mostly urban, and by an influx of foreign investors who see the country as a still-cheap market on a European scale. Where the middle class struggles to buy its first home, more affluent categories or non-residents see a country house or a tourist apartment as a way to place their capital in a tangible asset, supported by scarce supply.
Prague, the Beating Heart of the Market… and a Catalyst for Second-Home Demand
Prague is the nerve center of Bohemia and the entire country, and it is also the starting point for a large part of second-home demand. The capital’s appeal to investors and tourists fuels a dual movement: prices within the city itself climb, pushing some households to seek a more affordable pied-à-terre in the country’s interior or in the mountains, while foreigners combine purchases in Prague with second homes elsewhere.
At the end of 2024, the average price for an apartment in Prague, all categories combined, was about 139,900 CZK per square meter.
For comparison, Brno, the major Moravian city, operates in a range of 80,000 to 90,000 CZK per m², Ostrava, the former industrial bastion in Moravia, between 45,000 and 55,000 CZK, and many regional towns between 50,000 and 65,000 CZK. The price gap between the Bohemian capital and Moravian centers creates de facto a geography of second homes: Praguers are incentivized to buy “outside” for their country house, while some foreign buyers, after securing a property in the capital, turn to cheaper historic Moravian towns for a vacation residence.
The rental market in Prague is rising sharply, with an average rent of 438 CZK/m² in Q1 2025, up 9.5% year-on-year. For a 65 m² apartment, that’s about 26,800 CZK per month. Meanwhile, short-term rentals (Airbnb-type) showed an average daily rate of 3,200 CZK in 2024, up significantly. This dynamic leads to a significant portion of the housing stock being captured by tourism, turning many homes into “de facto second homes,” little occupied by permanent residents.
This “touristification” of Prague has a ricochet effect on the second-home market elsewhere in the country. On one hand, some investors prefer to buy their leisure home in less saturated heritage towns – for example in Moravia (Olomouc, Telč, Kroměříž, Lednice‑Valtice) – where tourist flows are significant but more controlled. On the other hand, Prague households, faced with a city of peak rents and high tourist density, seek regular refuges in the Bohemian or Moravian countryside.
Bohemia: Mountains, Spas, and Historical Heritage, a Natural Ground for Second Homes
In Bohemia, the supply and demand for second homes are concentrated in three main types of territories: mountain areas, spa regions, and countryside with strong historical heritage.
The North and West Bohemian mountain ranges, on the German border, are characterized by landscapes of chalets and weekend houses, highly sought after by Praguers and Germans. This mountainous region is the favored terrain for the “chata” or “chalupa,” a type of small country house inherited from the communist era and now highly sought after as a second home. The presence of the Elbe (Labe), a navigable river used for hydropower, enhances the appeal of the valleys for activities like boating, fishing, or stays in nature.
The spa towns of West Bohemia constitute another major hub. Karlovy Vary, an iconic spa resort inherited from the Habsburg era, illustrates this niche well. There, one finds a mix of high-end apartments, historic villas, and more affordable housing whose prices have seen some correction in recent years, attracting buyers looking for “good deals” in second homes. The average per m² prices in Karlovy Vary in the apartment segment remain far below Prague, around 51,000 CZK in Q4 2024, with annual growth of about 12%. The price gap allows, for example, German retirees to afford a high level of comfort for a cost well below that on the German side of the border.
The Bohemian countryside, with its historic villages and castles, is prized for second homes. Their tranquility, heritage, and proximity to nature (forests, lakes) make them an attractive market. Prices, especially in South Bohemia, can be up to three times lower than in the Prague region, while still being accessible by car from the capital. This opportunity is often seized by urban households who buy and renovate an old house, sometimes using a mortgage on their primary residence.
Moravia: Between Undervaluation and Rise, a Second-Home Market in the Making
Moravia, long perceived as the “poor cousin” to the east, presents a very different but potentially explosive profile for second homes. Economically, the gap with Bohemia is real: some border areas with Poland have purchasing power well below the national average, and large Moravian industrial cities have suffered from deindustrialization.
The Moravia region stands out with a set of unique strengths that make it a destination of choice for setting up a second home.
Baroque and Renaissance towns (Olomouc, Kroměříž, Telč, Třebíč, Žďár nad Sázavou), wine landscapes listed as World Heritage (Lednice‑Valtice), and caves and gorges of the Moravian Karst.
Wide fertile valleys, wine hills, proximity to the Carpathians, and a milder climate in the south, conducive to viticulture and outdoor tourism.
In terms of prices, Moravia and Bohemia are not in the same league. In the metropolis of Brno, apartment prices hover around 80,000–90,000 CZK/m², or 30 to 40% less than Prague. In tourist-rich Moravian towns like Olomouc or Zlín, average per m² prices remain between 68,000 and 81,000 CZK, despite strong annual growth, exceeding 14% in some cases. In Ostrava, a large industrial city in transition, the average apartment is around 52,000 CZK/m², with annual increases sometimes exceeding 20%.
This contrast can be summarized in a simplified table:
| City (historical region) | Average Apt. Price (CZK/m², Q4 2024) | Approx. Annual Change |
|---|---|---|
| Prague (Bohemia) | 139,900 | +14.9 % |
| Brno (Moravia) | 108,000 | +6.1 % |
| Olomouc (Moravia) | 81,400 | +15.3 % |
| Ostrava (Moravia) | 52,200 | +21.7 % |
| Karlovy Vary (Bohemia) | 51,000 | +12.1 % |
These price and growth differentials almost map out the possible trade-offs for a second-home buyer. In a logic of heritage vacationing, a Czech or foreign household might prefer Olomouc or the Lednice‑Valtice region over certain saturated Bohemian segments, benefiting from lower prices and faster appreciation potential. For rental yield, Ostrava or some North Moravian towns offer high gross yields (up to 6% and more) with modest entry costs, even if these markets remain more investment-oriented than leisure residence.
The second-home market in Moravia is mainly driven by affluent residents of Brno and other major cities, as well as a growing number of foreign buyers. The latter see it as an attractive alternative to Bohemia’s high prices. However, in disadvantaged Moravian territories, local purchasing power remains limited, restricting residents’ ability to acquire a second home locally.
Tourism, Culture, and Nature: The Matrix of the Second-Home Market
Second homes rarely develop in a vacuum. They accompany tourist flows, attach themselves to attractive landscapes, or align with cultural centers. On this front, Bohemia and Moravia each play their strengths.
The Czech Republic possesses an extraordinary heritage of medieval towns, castles, churches, and gardens, several of which are inscribed as UNESCO World Heritage. In Moravia, towns like Olomouc, Kroměříž, Telč, or Třebíč are architectural jewels, combining Renaissance and Baroque architecture, historic gardens, and wine cultural landscapes. Lednice and Valtice, in South Moravia, form a gigantic landscape complex listed as UNESCO, attracting both wine enthusiasts and castle-loving tourists.
Buying a second home in a region with high heritage density, like Bohemia with Prague, Český Krumlov, or Kutná Hora, offers two main advantages. First, it allows acquiring a property in an environment of very high symbolic and cultural value. Second, it represents significant rental potential, whether for seasonal rentals or furnished tourist accommodations, thus facilitating the offset of some investment costs.
Tourism figures confirm the dynamism of this matrix. In 2023, the country recorded over 22 million visitors in tourist accommodations, exceeding pre-Covid levels. Prague alone welcomed 7.4 million visitors, a 24% increase year-on-year. Meanwhile, the vacation rental market (Airbnb-type) is experiencing growing demand, with the average daily rate increasing by about 25% over two years in the capital.
A 10% increase in Airbnb listings in an area can lead to a 0.42% rise in rents.
In the Czech Republic, Prague concentrates most of these tensions, with thousands of homes dedicated almost exclusively to visitors. But Moravian towns like Olomouc or the southern wine regions are also seeing the development of a tourist rental market that de facto transforms part of the housing stock into investment second homes. Regulation is gradually strengthening, notably in Prague where short-term rentals are now subject to registration and stricter oversight, which could, over time, encourage some investors to turn to other towns, Moravian or Bohemian, for their leisure homes.
Who Buys These Second Homes? A Mix of Affluent Czechs and Foreign Investors
The profile of second-home buyers in the Czech Republic resembles that observed in other countries: they are on average older, wealthier, and frequently use debt, but with higher down payments than first-time buyers.
Even though specific Czech data on second homes is scarce, international studies give an interesting order of magnitude: in some developed markets, loans for second homes represent about 5% of new mortgage lending over the long term, with a significant share of borrowers over 45, often dual-income couples, and a down payment frequently exceeding 20% of the purchase price. Second-home buyers more often pay in cash than first-time buyers or use structures involving the collateral of a first property.
In the Czech Republic, about 76% of households are homeowners, a rate above the European average. Real estate ownership is historically perceived as protection against economic uncertainties and a pillar of retirement security. It constitutes the main long-term savings vehicle, motivating the acquisition of second homes, both for comfort (leisure) and as a wealth investment.
Alongside these domestic buyers, foreigners play a non-negligible role. It is estimated that between 5% and 7% of Czech real estate transactions involve a foreign buyer, but this proportion climbs to nearly a quarter in some new developments in Prague and 20–25% in Brno. In some targeted projects, developers report up to 27% of sales to non-residents. These buyers are often attracted to Prague or the Bohemian spa towns, but some are starting to diversify into Moravia to acquire more affordable second homes.
A Liberal Property Rights Regime, Attractive to Non-Residents
One of the country’s major assets for second homes lies in its legal framework. Private real estate ownership is solidly protected by the Constitution and the 2014 Civil Code. Expropriation is only possible for proven public interest reasons and with compensation.
Since 2011, nationals of third countries (non-EU) can freely purchase homes and building plots in France, with virtually no restrictions. Only certain agricultural or forest lands are exceptions. Property rights are guaranteed by registration in the cadastre, a public state-managed register, which is considered proof unless fraud is proven.
For a foreign buyer, the procedure is simplified: they can directly acquire a vacation house or apartment, in their own name or via a company, without residency conditions. They must nevertheless comply with local tax rules (property tax, possible taxation on rental income, capital gains upon resale), but overall benefit from the same treatment as a Czech citizen.
In practice, most transactions are organized via lawyers or notaries who handle the entire process: drafting the purchase agreement, managing escrow, cadastral registration. Transaction costs remain relatively moderate on a European scale, around 3.5% of the price on average (legal fees, cadastral registration, various costs), noting that the real estate acquisition tax (4% of price) was purely and simply abolished retroactively for acquisitions after the end of 2019.
Financing: Stricter Conditions for Non-Residents, but a Growing Market
The rise of the second-home market is closely linked to that of mortgage lending. The volume of new loans has rebounded strongly, with nearly 185 billion CZK in new loans granted in the first half of 2025, 56% more than the same period the previous year. The average loan amount reaches 4.21 million CZK, up 13.3% year-on-year.
Average rate for new residential loans in spring 2025, down significantly from the peak at the end of 2023.
For non-residents, conditions are a bit stricter. Czech banks most often require a down payment between 20% and 30% for foreign buyers, with a loan-to-value ratio generally capped at 70–80%. Income earned in the Czech Republic or the European Union is preferred for creditworthiness analysis, and some banks require stable residency in the country or the EU to offer their best rates. Despite these constraints, the credit market for foreigners is developing, driven by demand for second homes and rental investments.
Second Homes, Short-Term Rentals, and Pressure on the Local Market
The rise of second homes in the Czech Republic is not limited to country houses occupied a few weekends a year. In large cities and tourist areas, a significant portion of homes bought as a “second residence” are actually investment properties, operated as seasonal rentals for much of the year via Airbnb or similar platforms.
Studies conducted in North America and Europe, notably in Los Angeles (Venice neighborhood) and certain districts of Barcelona, show that an increase in the stock of short-term rentals is correlated with a rise in rents and sale prices. In these extreme cases, the share of price increases attributable to tourist rentals can exceed 30% over a given period.
The Czech Republic does not reach such extremes, but Prague illustrates a similar trajectory, on a more moderate scale. Thousands of homes in the historic center and districts like Malá Strana, Staré Město, or Karlín are now rented by the night. For the owners, often foreigners, these homes function as second homes operated as micro-hotels: little occupied by the owners themselves, they are nonetheless held long-term to capture both tourist income and rising property values.
The vacation rental phenomenon is developing beyond Prague, in tourist towns of Bohemia and Moravia like Olomouc, Telč, the southern wine communes, or mountain and lake resorts. The impact on local prices depends on the balance between tourist influx and new housing construction. In towns with low construction and high tourist growth, pressure on real estate prices can become a political issue, as seen in Prague.
Investing in a Second Home: Bohemia or Moravia, Trade-off Between Prestige, Price, and Yield
For an investor or a second-home buyer, the choice between Bohemia and Moravia often boils down to a clear trade-off: accept paying more for an ultra-touristic and highly liquid environment, or prioritize less saturated, less costly territories, but with more uncertain appreciation potential, though sometimes higher.
The Prague region and its surroundings present strengths for real estate investment: strong seasonal rental demand, international renown, and a scarcity of supply that supports long-term prices. It is particularly suitable for an urban luxury second home in Prague or a country house in an enhancing setting. However, prices are now approaching those of some Western European capitals, and gross rental yields tend to erode, around 3 to 4% in Prague for standard properties, sometimes less in the hypercenter.
Moravia, on the other hand, offers significantly lower entry costs, with historic towns like Olomouc or Zlín still affordable, a very attractive wine country, and transitioning hubs (Ostrava, some Brno districts) where rental yields easily reach 5–6%, or more in some segments. The flip side: lower liquidity, a more fragile local demand base in economically weak areas, and a sometimes less dense tourist fabric – even though some zones, like the Lednice‑Valtice complex or the Moravian Karst caves, are already established international destinations.
To illustrate the concept of trade-off, it can be schematized in a thematic table. This table allows for visualizing and comparing the different elements or options at hand, thus facilitating decision-making by clearly structuring the compromises and benefits associated with each choice.
| Criterion | Bohemia (Prague, mountains, spas) | Moravia (Brno, Olomouc, vineyards) |
|---|---|---|
| Average price level | High to very high | Medium to low |
| Typical gross rental yield | 3–4% (central Prague), higher in suburbs | 5–6% in some towns (e.g., Ostrava) |
| International tourism | Very strong (Prague, Karlovy Vary, mountains) | Growing (Olomouc, Lednice‑Valtice, karst) |
| Resale liquidity | Very high | Medium, varies by town |
| Capital appreciation potential | Solid but in a mature phase | Potentially higher long-term |
| Access from abroad | Excellent (Prague airport) | Good via Prague or Vienna, but longer |
In this context, choosing the right micro-market is crucial. In Bohemia, certain Prague districts (4 to 9), well-served by metro or trams, offer prices still below the hypercenter with strong appreciation potential thanks to urban developments (Smíchov City, Žižkov City, etc.). In Moravia, neighborhoods like Královo Pole in Brno or Nová Ulice in Olomouc, heavily frequented by students and young professionals, combine strong rental demand and a pleasant urban atmosphere, making them natural candidates for a second home rented part of the year.
Social and Territorial Issues: How Far to Push the Second-Home Lever?
The rise of the second-home market, particularly in the most attractive areas of Bohemia and Moravia, also raises fundamental questions: sharing the housing resource between permanent residents and second-home owners, impact on prices and regional inequalities, transformation of landscapes.
International studies show that a complete lack of regulation can create “vacation ghost towns,” with a housing stock often empty and permanent residents displaced to cheaper areas. Conversely, overly strict regulation, like an outright ban, can lead to perverse effects: rising prices of existing properties, decreased investment in the primary housing stock, and increased local unemployment.
In the Czech Republic, the situation is still far from these extremes, but warning signs already exist in some segments of Bohemia, notably in Prague and the most prestigious resorts. The debate on the balance between welcoming tourists, foreign investment, and protecting the right to housing for permanent residents is just beginning. In this discussion, Moravia occupies an ambivalent place: both a reserve of growth for the second-home market and a region where the fragility of some territories calls for caution.
Outlook: A Second-Home Market Set to Grow, with Diverging Trajectories for Bohemia and Moravia
All macroeconomic indicators suggest that the Czech real estate market, and by ricochet that of second homes, still has bright days ahead. GDP growth remains moderate but positive, inflation has normalized around 2–3%, unemployment is among the lowest in the European Union, nominal wages continue to rise, and the Czech National Bank is gradually easing its monetary policy.
Cumulative price increase forecast for real estate by 2030, driven by the shortage of new housing and urbanization.
Bohemia will likely continue to dominate this segment, especially in the Prague region, the north and west mountains, and the major spa towns. Prices there will probably rise faster than local incomes, increasing the role of foreign buyers and affluent categories. Moravia, for its part, will begin to close part of its gap, at least in its most dynamic cities (Brno, Olomouc, Zlín) and in its territories with high tourist potential (southern wine region, karst, UNESCO towns). For second homes, that is probably where the greatest room for maneuver lies, provided locations are well selected and the evolution of local policies on tourism and housing is monitored.
In a country where the aspiration for ownership remains very strong and where housing is already households’ preferred asset, the second-home market in the Czech Republic thus appears as the logical extension of a real estate cycle driven by scarcity. The difference between Bohemia and Moravia, between saturated tourist towns and still-cheap countryside, offers buyers an unusually wide spectrum of possibilities for a country of this size. The question remains whether, in the long term, Czech society will accept without friction the increasingly visible transformation of some of its towns and landscapes into territories of intermittent residence – whether secondary, touristic, or for investment.
Analysis of the Czech Real Estate Market
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
