Sales of New Apartments in Prague Continue to Rise – Prices Reach Record Levels

Demand for new-build apartments in Prague remains high. Despite a larger supply, prices once again rose to record levels in the Czech capital in the second quarter of 2026.

Demand for new apartments in Prague increased significantly again in the second quarter of 2026. Between April and June, around 1,950 new-build apartments were sold in the Czech capital – approximately eleven per cent more than in the same period of the previous year.

At the same time, prices reached new highs. The average asking price approached the level of 188,000 korunas per square metre, while the average selling price rose to more than 182,000 korunas per square metre. This is according to a current market analysis by property developers Trigema, Central Group and Skanska Residential.

The companies cite rising household incomes and concerns among many buyers about further increases in property prices, higher mortgage interest rates and rising inflation as reasons for the continuing strong demand. In the second quarter alone, sales were more than eight per cent above the level recorded in the first three months of the year.

Foto: Tierra Mallorca | Unsplash

Particularly High Number of Sales in Prague 5

The largest number of new apartments was sold in Prague 5 between April and June. The district accounted for around one quarter of the entire market. It was followed by Prague 9 and Prague 10, each with around 20 per cent, as well as Prague 4. Together, these four districts accounted for almost three quarters of all new-build apartments sold.

Prices Reach New Historic Highs

The average asking price for new-build apartments in Prague rose to 187,781 korunas per square metre in the second quarter. Compared with the previous quarter, this represents an increase of three per cent. Year on year, the asking prices of apartments increased by more than ten per cent.

The average selling price reached 182,845 korunas per square metre. This was 2.9 per cent more than in the first quarter and almost eleven per cent more than one year earlier.

Foto: Central Group

Prague 2 Remains the Most Expensive District

The highest average selling prices were recorded in Prague 2. New-build apartments there cost an average of more than 271,000 korunas per square metre. This was followed by Prague 1 at around 239,000 korunas and Prague 7 at just under 232,000 korunas per square metre. The lowest average selling prices were recorded in Prague 10 at around 159,000 korunas per square metre. In Prague 9, an average of approximately 171,000 korunas per square metre was charged.

The developers cite a combination of strong demand, persistently insufficient construction activity, expensive land, rising construction costs and higher financing costs as the reasons for the increase in prices.

Supply at Its Highest Level in Ten Years

At the end of June, around 6,450 new apartments were being offered for sale in Prague. This was the highest figure in more than ten years. Compared with the end of the first quarter, supply increased by more than 18 per cent. Compared with the previous year, around twelve per cent more new-build apartments were available.

According to the developers, the larger supply is primarily due to an improved situation in the construction sector and the launch of sales for several larger projects and new construction phases.

However, an acceleration of the approval procedures was not the reason. According to the Czech Statistical Office, only 2,878 apartments in Prague apartment buildings were approved between January and May. This represents a decline of more than 15 per cent compared with the same period of the previous year.

The companies are pinning their hopes for improvement on the comprehensive amendment to the Building Act, which was approved by the Czech Chamber of Deputies in July. Among other things, the draft provides for the establishment of a state construction authority, a consolidated approval procedure and a final decision.

Foto: IPR Praha

The adoption of Prague’s new metropolitan plan is also regarded as a positive development. It is intended to make additional land available for residential construction. This could curb the sharp rise in land prices and improve the availability of housing.

This is good news for the market. Prices for new apartments have risen by around 170 per cent over the past decade due to the limited supply. Only a sufficient supply can slow the further increase in housing and rental prices.