By 2025, Prague’s housing market had entered a phase that primary market participants themselves describe as a supply shortage against the backdrop of recovered demand. According to joint analytics by developers Central Group, Skanska, and Trigema, apartment sales in Prague in 2025 were 8% higher than in 2024, while the number of available units declined by 10%.

In this article, we analyze Prague’s residential real estate market and explain what is driving demand and why supply is failing to keep pace.

Contents:

  1. Key Figures of Prague’s Housing Market
    1. The Financial Side of Prague’s Real Estate Market
  2. Outlook for Prague’s Housing Market in 2026

Key Figures of Prague’s Housing Market

By the end of 2025, around 7,800 new apartments were sold on Prague’s primary market, which is approximately 8% more than in 2024. These figures are based on aggregated analytics from the capital’s largest developers, who traditionally control a significant share of new residential construction in the city.

At the same time as sales increased, available supply contracted by roughly 10%. The reason is a chronic mismatch between demand and the pace at which new projects are delivered. According to estimates by developers themselves and industry analysts, Prague needs to bring at least an additional 9,000 to 10,000 new apartments to the market annually in order to stabilize prices.

The second key issue is the length of the approval process. For large residential projects in Prague, the path from initial concept to the start of construction often takes 4 to 6 years. As a result, supply cannot expand quickly in physical terms, and the market responds through rising prices.

The Financial Side of Prague’s Real Estate Market

In 2025, Prague’s primary market experienced a year of strong demand. Against this background, the average transaction price for new-build apartments approached €7150 to €7400 per square meter. Price growth is uneven, with the most expensive areas remaining the historic center of the Czech capital, specifically Prague 1 and Prague 2.

New-build apartment prices in Prague by district:

District

Typical price range, €/m²

Praha 1

€8650–9650

Praha 2

€8250–9450

Praha 3

€7000–8000

Praha 7

€6800–7800

Praha 8

€6400–7400

Praha 4

€5550–6600

Praha 9

€5350–6400

Praha 10

€5350–6400

Under conditions of shortage, formats with the strongest investment demand rise in price the fastest, including purchases for rental purposes. As a result, studios and compact one-bedroom apartments typically show the highest growth rates. They are easier to acquire and more liquid than larger units, but for this reason the average price per square meter in this segment is 10 to 20% higher.

With an average housing price of around €7200 per square meter and a typical apartment size of 60 to 70 square meters, the total purchase price comes to approximately €470,000. This level significantly exceeds the annual income of an average household, estimated at €31,000 to €33,000 gross. Even when using mortgage financing, the required down payment and debt burden remain unaffordable for a large share of buyers without prior savings or family support.

At the same time, the rental market continues to grow. The regulator notes that in 2024–2025, rental rates in Prague increased on average by 5 to 7% per year and remained substantially higher than in other regions of the country. Rising rents reduce households’ ability to save for a purchase and thus further support demand for housing as an investment asset.

Apartment rental costs in Prague:

Apartment type

Average monthly rent

Share of household income

Studio / 1-room

€850–1050

30–40%

2-room

€1100–1350

35–45%

3-room

€1400–1700

40–50%

Income shares are shown excluding utilities and reflect the situation for typical urban households.

Outlook for Prague’s Housing Market in 2026

In 2026, Prague’s housing market is expected to maintain the trend observed in 2024–2025. Prices continue to rise because supply does not keep up with demand. The main reason is that new housing volumes enter the market slowly, while demand remains resilient.

Mortgage interest rates will be the decisive factor. If rates ease, this will stimulate demand and intensify competition for an already limited number of units. If rates increase, demand may cool, but this does not guarantee price declines, as the supply shortage will persist. In that scenario, the market is more likely to shift toward slower sales while maintaining a high overall price level.

Within the city, price differences between districts are expected to remain. The highest prices will stay in central areas, while the strongest percentage growth will more often appear in semi-central and outer districts, where entry budgets are still relatively more accessible for buyers.