Over the past decade, the transformation has been dramatic. In 2015, new apartments in Prague were offered at around CZK 64,000 per square meter (≈ €2,560/m²) — today that figure reaches roughly CZK 177,000 per square meter (≈ €7,080/m²).

Despite this steep growth, demand remains exceptionally strong. Prague recorded 7,800 new apartment sales in 2025, the highest level since records began and an 8% year-on-year increase. Developers attribute this to lower mortgage rates, which eased toward ~4.5%, renewed confidence in real estate as a safe asset amid volatile financial markets, and pent-up demand from weaker years.

Prices continued to rise in 2025, with Prague apartment prices up about 9% year-on-year. Meanwhile in Brno, 1,405 new apartments were sold, the strongest result in nearly a decade, with average asking prices climbing from around CZK 133,000 to CZK 145,000 per square meter (≈ €5,320 to €5,800/m²).

The market’s structural problem remains unchanged: severely constrained supply. Prague needs an estimated 10,000 new apartments annually, yet completions remain roughly half that level. By the end of 2025, only about 5,150 new units were on the market, down nearly 10% year-on-year. Developers point to slow permitting processes and rising construction costs as the main bottlenecks.

Smaller apartments dominate sales in both Prague and Brno. One- and two-room units account for 70–80% of transactions, showing buyers’ preference for more affordable units amid limited supply and rising prices.

Mortgage activity mirrors the strength of the housing market. In 2025, Czech banks issued CZK 321 billion in new mortgages (≈ €12.8 billion), a 41% annual increase and one of the highest annual volumes on record. Including refinancing, total mortgage volumes reached CZK 406 billion (≈ €16.2 billion).

Developers warn that without meaningful reform to the permitting system and relief from escalating construction costs, price growth is likely to remain a long-term trend rather than a temporary spike.

Source: E15, Forbes.cz

Compiled by the team of CzechTrade Baltics