Analyses, trends and context from the real estate world

Prices of newly built apartments in Prague have risen by approximately 9% year-on-year, with the average asking price reaching CZK 187,000 per square metre. However, the market structure is also undergoing significant changes: the supply of large family-sized apartments is shrinking, and their price per square metre is converging with that of smaller investment units. There are currently 6,570 newly built apartments on the market in Prague, while prices in the most sought-after locations in the wider city centre regularly exceed CZK 200,000 per square metre. These are the findings of the new LEXXUS NORTON Market Report, which analyses developments in Prague’s residential property market, including the premium segment.

The Prague residential market is not entering a period of stagnation; rather, it is becoming increasingly segmented. While some buyers are reaching the limits of housing affordability, prime locations continue to maintain a very strong position due to a persistently limited supply. We expect high-quality properties in Prague's most sought-after neighborhoods to continue delivering above-average price growth and to remain a reliable store of capital value.

The shortage of larger apartments in new residential developments is reshaping the pricing dynamics of Prague's housing market. The price per square meter of four-bedroom apartments (4+kk) and larger is beginning to converge with that of smaller investment units, which have historically commanded the highest prices. This trend is the result of a long-standing shortage of family-sized homes.

The average mortgage amount in the Czech Republic has exceeded 4 million crowns, a significant milestone that reflects both the dynamics of the mortgage market and the overall economic environment. Learn more in this article by Senior Consultant Jana Panochová from our Consulting Department.

In 2024, the Prague residential market saw a significant rise in sales of new flats, with demand buoyed by falling mortgage rates and economic stabilisation. However, the supply of new housing remains limited and prices have reached record levels. What factors have influenced market developments and what can we expect in 2025?