Prague New Apartments Hit Record Prices

Prague’s new-build housing market remains under pressure as prices reach record highs while supply continues to shrink. Despite strong demand, limited new approvals and construction delays are intensifying the imbalance heading into 2026.

Record Sales in 2025 Amid Falling Supply

According to an analysis by Central Group, Skanska and Trigema, a total of 7,800 new apartments were sold in Prague in 2025, an increase of approximately 8% compared to the previous year and the highest annual volume on record.

At the same time, supply fell by 10% year-on-year and remains significantly below market demand. The persistent shortage continues to drive competition and upward price pressure.

Lower Mortgage Rates Fuel Demand

Demand has been supported by declining mortgage rates of around 4.5% and strong lending activity, with total mortgage volumes reaching CZK 321 billion. Stock market uncertainty and deferred demand from 2022–2023 further stimulated buyer interest.

Two-room apartments (2+kk) and studio flats remain the most sought-after property types, reflecting buyers’ focus on relatively affordable segments.

Dušan Kunovský, CEO of Central Group, noted that while sales volumes are at record levels, the market remains constrained by lengthy planning approvals and rising construction costs.

Prices Climb to Historic Highs

In the fourth quarter of 2025, average asking prices for new apartments rose to CZK 177,631 per square metre, up 9% year-on-year. Actual transaction prices increased even more sharply, reaching CZK 174,375 per square metre, an 11% annual rise.

Prague 9 recorded the highest share of sales, accounting for around 23% of total new apartment transactions. It also posted among the lowest average prices at approximately CZK 163,000 per square metre. The highest prices were observed in Prague 2, exceeding CZK 233,000 per square metre.

Planning Delays Limit Market Relief

Supply constraints are exacerbated by slow approval procedures and delays in construction digitalisation. Between January and November 2025, only 5,280 new apartments received planning approval, nearly 17% fewer than in the previous year.

Experts do not anticipate meaningful relief in 2026. A more balanced market may only emerge after amendments to the new Building Act and the Metropolitan Plan, expected from 2027 onwards.

As experts at International Investment report, Prague’s new-build market remains structurally undersupplied. With demand resilient and approval processes slow, price pressure is likely to persist, although future dynamics will depend on mortgage conditions and regulatory reform progress.