Rents for apartments in Prague will approach those standard in Germany and Austria in the coming years. This will be driven by rising wages and the increasing attractiveness of Prague for foreign investors drawn by the availability of higher yields, according KPMG. The advisory provided a copy of its study to the Czech News Agency. KPMG’s Pavel Dolák wrote that these yields will converge in coming years, with a return of 3.9 percent now on offer in Prague. In 2016, the yield for rental flats was 4.4 percent. “The prices of flats jumped in recent years,” said Dolák. “From 2016 to 2018, the market value was several times higher than the yield on gross rents. Whereas in 2014, the situation was reversed,” he said. Apartment prices rose 18.6 percent last year for new units to CZK 101,091 per square meter.
