The current situation in the historic centre of Prague does not allow for interference in the behaviour of investors. The tools for protection of Prague Historic Reservation are insufficient. Much of the real estate is not used and becomes ruins, resulting in an irreplaceable cultural and social, but also economic loss to the Prague Historical Reservation which is on the UNESCO World Cultural and Natural Heritage List. The aim of this thesis is to analyse the current state of Prague Historic Reservation as well as to suggest possible solutions. Analyses, own research, interviews and statistics have been used to prove the situation. There is a part of the thesis comparing the current state with other cities abroad (e.g. Vienna, Dresden, Cologne, Paris).