Larger Apartments Are Disappearing from the Market
In recent years, developers have significantly reduced the construction of larger family-sized apartments. Supply has shifted towards smaller units, which sell more quickly and better match investor demand. As a result, the shortage of four-room apartments (4+kk) and larger is driving their prices higher.
"Studio apartments remain the most expensive type of new-build on a price-per-square-metre basis, but their premium is gradually narrowing. The price gap per square metre between the smallest and the largest apartments is now the lowest it has been in years," says Anna Gruberová, CEO of LEXXUS NORTON.
The current average price of a new-build studio apartment stands at CZK 203,245 per sq m, while a 5+kk apartment now sells for an average of CZK 184,866 per sq m. The difference in price per square metre between a family-sized 5+kk apartment and a studio has narrowed to just 9.9%, compared with 15% a decade ago.
Families Face an Increasingly Difficult Housing Search
The changing price structure also highlights a broader challenge in Prague's residential market. While the supply of smaller apartments continues to respond to strong investor demand, the segment of larger homes intended primarily for families has remained chronically undersupplied.
As a result, families are increasingly competing for a limited number of newly built homes. This heightened competition is pushing prices upward, bringing the price per square metre of family-sized apartments close to that of traditionally more expensive small investment units. Large family apartments are becoming one of the scarcest segments of Prague's residential market.
New-Build Prices Continue to Rise, While Sales Activity Slows
The average asking price of new apartments in Prague currently stands at CZK 182,000 per sq m (including VAT), representing an 8.2% year-on-year increase. Limited supply and lengthy permitting procedures continue to support price growth.
The continued increase in prices is being driven by a combination of factors, including the limited pipeline of new developments, persistently slow permitting processes, rising construction costs, and the constrained capacity of construction companies.
Since the spring of 2026, however, we have observed more cautious behaviour among buyers. Purchasing decisions are taking longer, and some prospective buyers are postponing transactions. This is primarily due to a modest rebound in interest rates following two years of gradual declines, as well as heightened geopolitical uncertainty, including the escalation of the conflict in the Middle East.
Although residential prices continue to edge higher, the Consulting Department at LEXXUS NORTON expects the pace of growth to moderate over the coming months compared with previous periods.
