The property market is still in the process of development, but a viable occupational market has been established (especially in the Prague area) since 1989 in response to high levels of tenant demand. As foreign interest in the Czech Republic continues to increase, a corresponding increase in construction and investment opportunities is expected to raise the supply of available properties.

CzechInvest continues to develop its property database to more effectively serve investors' needs.

The following information reflect CzechInvest's experience based on co-operation with its regional representatives and real estate agents.


The office/ commercial space market continues to make rapid strides on the path to maturity and the pace of development has lost none of its momentum. Landlords and tenants have consistently underestimated the capacity of Czech companies to acquire areas of space, for owner occupation or lease, and foreign companies within Prague area continue to expand rapidly.

Rental values vary depending on location and standards of equipment.

PRAGUE:           City centre                DM 45-50/ m2/ month
                  Peripheral areas           DM 30-35/ m2/ month

BRNO:             City centre                DM 20-25/ m2/ month
                  Peripheral areas         up to DM20/ m2/ month

Rest of country:  Rents are estimated at     DM 10-15/ m2/ month


The majority of existing industrial space available for occupation in the Czech Republic was constructed prior to 1989. Available buildings often form part of a larger complex, are often multi-storey and are usually purpose built for a particular use. As a result of the large scale of previous state operations, buildings are often of considerable size (it is unusual to find any available property in sizes less than 2,000m2).

Following the privatisation of state enterprises, there are a number of properties on the market. The majority of buildings which are in reasonable condition are disposed of leasehold as companies seek to benefit from rental income combined with anticipated capital appreciation.

Leases are usually for terms between 5 and 10 years and a break clause, or equivalent, is often incorporated if the lease is longer. Assuming the units are between 2,000 and 5,000m2, the pattern of rents for existing space is as follows:

PRAGUE:           Best Quality       10 - 12DM/ m2/ month
                  Remainder          5  - 10DM/ m2/ month

BRNO:             Best Quality       8  - 10DM/ m2/ month
                  Remainder          4  - 8 DM/ m2/ month

Rest of Country:  Best Quality       4  -  5 DM/ m2/ month
                  Remainder          3  - 3,5DM/ m2/ month


Although the development cycle has not as yet provided warehouse/ industrial accommodation on any great scale, more and larger international and Czech developers are actively seeking sites to create not only industrial parks but also business park environments and appropriate facilities.

Presently no speculative industrial buildings have been constructed in the Czech Republic. There are, however, several schemes in the pipeline which seek to remedy the imbalance between supply and demand of quality accommodation.

The following selling prices assume a site with all the necessary infrastructure located in the immediate vicinity.

PRAGUE:           Best Quality             70 - 140DM/m2 
                  Remainder                35 -  70DM/m2

BRNO:             Best Quality             45 -  70DM/m2
                  Remainder                25 -  45DM/m2

Rest of Country:  Best Quality             35 -  45DM/m2
                  Remainder                up to 35DM/m2


Summary of essential prices of construction works in Czech Republic, assuming

  • medium difficult ground conditions
  • prices in level valid in 1995
  • the "value added tax" (5%) added to prices

Average costs of building works in CR valid during 2nd quarter 1995.

1. Factory ( 7 m high)                         about 20.500 Ke/m2
2. Head offices ( 2 stories)                   about 35.500 Ke/m2
3. Warehouse ( 9 m high)                       about 19.800 Ke/m2
4. Roads ( according to existing conditions)   about  1.400 Ke/m2
5. Park and garden                             about    500 Ke/m2
6. Sports ground                               about  2.200 Ke/m2
7. Heating main                                about  6.500 Ke/m2
8. Water main                                  about  2.500 Ke/m1
9. Electricity (cable)                         about  1.200 Ke/m1
10.Reinforced concrete                         about  4.000 Ke/m3
11.Piles (any) from to 800 to 1000mm           about  8.000 Ke/m1

These fees of design and engineer works are priced according to "Fee rule of authorized engineers" and form about 7 to 8 percents of basic costs of the building.


All companies and individuals owning property are subject to the Real Property Tax No. 338/1992. For industrial properties, tax is calculated as 5 Ke per square meter x land area x location coefficient. For other properties, a rate of 10 Ke per square meter is substituted into the same calculation.

Population of              Location
Village/City               Coefficie

up to 300                  0.3
300-600                    0.6
600-1,000                  1.0
1,000-6,000                1.4
6,000-10,000               1.6
10,000-25,000              2.0
25,000-50,000              2.5
more than 50,000*          3.5
Prague                     4.5

*Also includes Frantiskovy Lazni, Luhaeovice, Mariansk‚ 
Lazni, and Podibrady.

Property tax statistics courtesy of Coopers & Lybrand

  • Rent for non-residential property in the CR is subject to a 5% VAT (with the exception of banks and foreign representational offices).


  • The Czech Republic has an extensive rail network. Most international lines connect at Prague's Hlavni (main) and Holesovice train stations. For enquiries regarding rail freight call 2161 1111.
  • Prague's Ruzyni airport services domestic and international flights, with at least three daily flights to and from most major European cities; New York is serviced by three direct flights each week and by daily flights via Frankfurt. Other domestic airports are located in Karlovy Vary, Ostrava, and Brno. A new terminal in Prague is planned to be completed within two years. For general information, call 367 760; for enquiries regarding air freight call 334 1111.
  • Several projects are currently underway to improve the Czech Republic's road network. These include the improvement of road surfaces on major transit routes (to be completed by 1996) and the construction of by-pass roads around several cities.

In November 1993 the Czech government approved a programme aimed at accelerating highway construction. This 12-year programme will provide for the commission of 987 km of new highways to be linked to the European transportation network, increasing truck transit capacity and connecting all major Czech cities with high-quality roads. In Prague, the city government has drafted the construction of inner and outer ring roads to keep traffic out of the city centre and create a direct link to highway junctions for Brno, Vienna, Nuremberg, Dresden, and Berlin. Plans are also underway to expand Prague's metro system further into the suburbs.


  • Due to the sudden increase in commercial activity, Prague's telecommunications system is currently expanding to meet demand. It is anticipated that by the year 2000, there will be a 35-40% increase in subscribers' lines, with 75% of the network digitised, 70,000 data stations, 170,000 public radio-telephone stations, and 165,000 fax subscribers.
  • Local telephone calls cost 1.6 Ke, regardless of time of day or length of call. Cost varies for international calls; for example, a one-minute call to the UK costs 32 Ke (about $1.00), and to the USA 63 Ke (about $2.00) .

A Dutch/Swiss consortium aquired a share in the Czech national telecommunications company in July 1995 and will invest approximately USD 131 million in modernization over the period 1995 - 2000. By the end of 1996, 400 000 new phone lines are to be installed. The Czech Republic's SPT Telecom plans to install about one and a half million new telephone lines through to 1998. It expects phone line penetration to reach 37 per 100 households by 1998.


  • Prague is supplied with natural gas, electricity, and solid and liquid fuel. Its district heating system, using solid fuel, is typical of most East European cities. Future plans to use natural gas allow for access to energy sources outside the city.
  • A major nuclear power facility is being developed at Temelin, in Southern Bohemia, which will complement the existing 4 x 440 MW nuclear plant at Dukovany in Southern Moravia.


  • The Czech government is currently addressing the environmental difficulties associated with the former regime's industries. Proposals for environmental reform have been developed to run parallel with economic reforms, including such incentives as tax breaks, lower interest rates, and custom duty exemptions for activities leading to environmental improvements.
  • For firms in which at least 40% of capital is owned by foreign investors, there is no liability for environmental damage caused prior to foreign investment in the firm. In such cases, the Czech National Property Fund will assume responsibility.

CzechInvest wishes to thank Price Waterhouse (tel: 2421 7483) for their contribution to this fact sheet.

For further information contact CzechInvest at Politickych veznu 20, 112 49 Prague 1, Czech Republic Phone (42-2) 2422-1540 Fax: (42-2) 2422-1804

NOTE: Although we have made every effort to ensure the reliability of our sources, CzechInvest does not assume responsibility for its accuracy.