Karlovy Vary. Investment Jackpot of the Year?

16. 6. 2025

Prices of properties in the principal parts of the Czech Republic have skyrocketed and even financially secure families cannot afford them. From the point of view of investing money, it is now questionable whether properties, with regard to the current prices, are still safe and high-return investments.

However, if we look at the Czech Republic in more detail, without giving in to the pressure of locations with a high concentration of economic capital, we can still find regions where properties are worth investing in. One of them is the town of Karlovy Vary.   

"Karlovy Vary has an incredible potential. The D6 motorway is about to be finished, there are many interesting and unused properties for low and affordable prices (compared to Prague), increasingly better restaurants, rich cultural opportunities as well as improving services. The town has also benefited from becoming a UNESCO World Heritage Site and changes to lifestyle that are in accordance with the general wellness and well-being concept,” says Filip Šejvl, Managing Partner at Philip & Frank.

In comparison with Prague and the mountain areas, the prices of properties in Karlovy Vary remain favourable. According to the data of the Czech Statistical Office, the average purchase price of flats in the Karlovy Vary Region in 2021–2023 was CZK 33,094 per square meter, which is much less than the national average (CZK 57,899 per square meter). The average price of flats in Prague at the end of 2024 exceeded CZK 130,000 per square meter. Luxury suites in the Krkonoše(Giant Mountains), for example in Špindlerův Mlýn, are now being sold for more than CZK 200,000 per square meter.

Likewise, rent is much lower in Karlovy Vary, where the average price per square meter is around CZK 220 while in Prague it is usually over CZK 400. Therefore, with the increasing demand for both short- and long-term lease, there are opportunities for investments with faster return.

“The prices of properties in Karlovy Vary are not going to drop. In fact, we think it is just a matter of time when they begin to rise. Moreover, there is now the most extensive range of properties to choose from. Such an investment window may not come along again for a long time,” says Filip Šejvl. “This is the right moment for investors as well as those who are looking for a second home.”

A town that is coming alive 

After many years, the town of Karlovy Vary is opening to new clients. The demand from the Russians has been reduced, there is increased interest from German as well as Czech tourists and the town is gradually getting rid of its image of an enclave. There are opportunities arising for new owners but there is also a chance for the everyday life, as opposed to the merely seasonal bustle, to return to the town.

One of the factors contributing to that is the improving infrastructure: thanks to new parts of the D6 motorway, the drive from Prague to Karlovy Vary will become much shorter (about an hour instead of ninety minutes), which is essential for many holidaymakers’ decision-making. Also, the Krušnéhory (Ore Mountains) as well as border crossings are nearby and there is an airport in the town of Karlovy Vary with flights to Turkey and Bulgaria in summer. The airport in Nuremberg, Germany, which is an alternative for year-round low-cost flights, is not very far and there are also many job opportunities in Germany. All that makes Karlovy Vary not only a nice place for relaxation but also a modern town to live, do business and invest in.

Secondary housing with benefits 

While the prices of properties in the Alps or in the Krkonošehave been soaring and public facilities are less available in the low season, Karlovy Vary offers year-round opportunities: skiing in nearby resorts (within half an hour by car) in winter, relaxation in wellness centres in spring and autumn and cultural festivals and tourism in summer.

The fact that Karlovy Vary became a UNESCO World Heritage Site in 2021 has made the town more prestigious internationally and attracted more tourists. One of the results of that is increased interest in short-term lease: Airbnb flats now constitute a growing market segment. Local hotels have improved in quality or let private lessors seize more opportunities. All these factors contribute to a better return on investment – whether in the form of one’s own holiday home or long- or short-term lease. 

In short, Karlovy Vary is a town with a rich spa tradition, outstanding architecture and unique atmosphere, and it is now undergoing a dynamic change. That makes the town an interesting destination not only for tourists but also for property investors who expect an extraordinary increase in the value of investment, which is one of the reasons why Philip & Frank has a Karlovy Vary branch, headed by Lucie Holcová.

If you are interested in a detailed analysis of a place in the town of Karlovy Vary or anywhere in the Karlovy Vary Region from the point of view of investment, or if you would like to discuss opportunities to buy a holiday home or secondary dwelling, please, do not hesitate to contact us.

https://www.philip-frank.com/cs/kontakt/