Housing Prices in the Czech Republic Rising at Record Pace

Housing prices in the Czech Republic have reached historic highs. In Q2 2025, the market recorded a 17% increase year-on-year and almost a twofold rise compared to pre-COVID levels. Real estate has become one of the key sources of inflationary pressure, while housing affordability continues to decline, Bloomberg reports.

Market Data and Regional Differences

The average apartment price in the Czech Republic in April–June reached CZK 81,117 (€3,305) per sq. m, according to Prague Daily. This is 16.3% higher than Q2 2024. Growth has now been recorded for six consecutive months.

- The strongest increases were in the Moravian-Silesian region (+26%), Ústí nad Labem (+24%), and Hradec Králové (+22%).
- The smallest growth was in Liberec (+9%).
- No region reported a price decline compared to last year.

Buyer Preferences and Micro-Apartments

Demand for micro-apartments surged by 56% in Q2. Over 400 such units were listed in Prague, with the average time on the market dropping by 41% to less than two months.

In Prague, 4,300 new-builds were sold in the first half of 2025, up 23% year-on-year. For the first time, average asking prices exceeded CZK 170,000 (€7,000) per sq. m, with actual transaction prices averaging CZK 165,019 (€6,700).

- More affordable new-builds were available in Prague 9 (CZK 152,000 / €6,194).
- Historic districts Prague 1 and 2 reached over CZK 210,000 (€8,560).
- Over the past 10 years, new-builds have appreciated by 170%.

Limited Supply and Mortgage Trends

The number of available new flats grew slightly to 5,750 units (+7.5% q/q), mostly due to delayed projects. Experts note that Prague needs 10,000 new approvals annually to stabilize the market.

According to Hana Kontriš of Seznam.cz, strong demand is fueled by mortgage affordability and savings. In June, the average mortgage rate was 4.56%, while loan issuance rose by 50% to CZK 150 billion (€6 billion). About half of all transactions are completed without mortgages, as Czechs are among the EU’s top savers.

Central Bank Concerns

The Czech National Bank has paused its rate-cutting cycle amid overheating concerns. Deputy Chair Eva Zamrazilová warned that treating real estate as a “risk-free” asset creates dangerous illusions. She called on the government to use tax policy and restrictions for foreign buyers to cool demand. Regulators also urged banks to promote alternative investment products.