Demand for new flats in Prague remains high – and continues to drive prices upwards. In the first half of 2025, 4,300 new flats changed hands, an increase of 23 per cent compared with the previous year. At the same time, the average price per square metre exceeded the 170,000-crown mark for the first time. These figures come from the latest market data provided by developers Trigema, Central Group and Skanska Residential.
From April to June, 1,750 new flats were sold in Prague, representing a slight decline of eight per cent compared with the same quarter last year. Nevertheless, demand remains roughly 20 per cent above the long-term average. The half-year result is the second-best of the past 15 years – only in 2021 were more flats sold in the first six months. Experts expect that more than 8,000 new builds could find buyers in 2025, which would mark a new record.
Falling interest rates stimulate the market
One of the main drivers of strong demand is the gradual decline in mortgage interest rates. According to ČBA Hypomonitor, the average interest rate on new loans fell to 4.56 per cent in June, while the volume of mortgages granted rose by 50 per cent year-on-year to 150 billion crowns. Many buyers and investors continue to see property as a safe investment – not least against the backdrop of global economic uncertainties. Flats in districts Prague 4, 5, 9 and 10 are particularly sought after.
Prices climb to new record levels
The average asking price now stands at 170,594 crowns per square metre, up 8.8 per cent year-on-year. The actual selling price is 165,019 crowns, which is 12.3 per cent higher than last year. The cheapest new builds are in Prague 9, at around 152,000 crowns per square metre, while buyers in the historic inner-city districts 1 and 2 have to pay over 210,000 crowns.
The industry attributes the high prices not only to demand but also to bureaucratic hurdles. “The building permit process has been an issue for years, but with the new law and sluggish digitalisation, the situation has worsened,” says Dušan Kunovský of Central Group. Over the past ten years, prices for new builds have risen by more than 170 per cent.
Supply stagnates – no easing in sight
At the end of June, 5,750 new flats were on the market, around 7.5 per cent more than in the previous quarter. However, this increase is mainly due to older, already prepared projects. The structural supply gap remains – according to experts, Prague would need to approve up to 10,000 new builds annually to meet demand. As long as the processes are not significantly accelerated, the pressure on prices is unlikely to ease.
