New apartment prices in Prague rise to CZK 176,600 per m² in the 4th quarter

Prague Real Estate Market: Prices Continue to Grow in the Fourth Quarter

The Prague real estate market continues to record rising prices for new apartments. According to data from the Develop Index compiled by Deloitte, in the fourth quarter of last year the average selling price of apartments in development projects reached CZK 176,600 per square meter, marking a 2.9% increase compared to the previous quarter.
The price increase affected almost all districts of the Czech capital, confirming an already well-established upward trend. The only exception was Prague 10, where a slight decrease of 0.6% was recorded, bringing the average price to CZK 157,100 per square meter. Overall, however, Prague’s housing market continues to demonstrate strong resilience, supported by steady demand and limited supply.

Most Expensive Districts: Prague 1, 2 and 7 Lead the Market

A closer look at prices by district clearly shows that the historic city center and surrounding neighborhoods remain the most sought-after areas.

• In Prague 1, new apartments reached an average price of CZK 262,100 per square meter, confirming the district as the most expensive in the city.
• Prague 2 followed with CZK 236,700 per square meter,
• while Prague 7 recorded CZK 225,900 per square meter.

According to Deloitte, these districts have long ranked among the most desirable due to their strategic location, extensive services, and historical and architectural value. The strong appeal of these areas continues to keep new-build prices elevated, positioning central Prague as one of the most exclusive real estate markets in Central Europe.

Strongest Quarterly Increases in Prague 8 and 6

Looking at quarterly changes:

• the most significant increases were recorded in Prague 8, where prices rose by 8%.
• Prague 1 followed with a 7.7% increase,
• while Prague 6 saw prices climb by 6.6%.

These substantial gains highlight continued demand pressure across several parts of the city.
According to Petr Hána, Director of the Real Estate and Construction Department at Deloitte, the rise in prices is primarily linked to the persistent shortage of new housing relative to demand. Limited supply remains one of the key drivers behind the upward trend in Prague apartment prices, keeping the market competitive for both homebuyers and property investors.

Declining Supply and the Role of Major Developers

In the fourth quarter, 322 development projects were underway, representing a 2.9% increase compared to the previous quarter. However, the total number of apartments on offer declined by 12.7%, falling to 7,271 units. This decrease is attributed to the launch of smaller-scale projects and the gradual sale of previously available units.
Among the main market players, Central Group stood out with 765 apartments available for sale, making it the developer with the largest supply. It was followed by Metrostav with 194 apartments, as well as Skanska and Atlantis Investment. The presence of major developers confirms the strength of Prague’s residential sector, despite ongoing challenges related to the availability of new building sites.

Strong Demand for Smaller Units: Record Sales in 2025

The best-selling apartments in the fourth quarter were 2+kk units (one-bedroom apartments with a kitchenette), with 3,200 units sold. Their average price reached CZK 173,600 per square meter, with an average size of 55.5 square meters. After 2+kk units, the most in-demand layouts were 3+kk and 1+kk apartments.
Buyer interest continues to focus mainly on small and medium-sized apartments, which are more affordable in terms of total purchase price and attractive as investment opportunities. Confirming the market’s dynamism, a joint analysis by Central Group, Skanska Residential and Trigema showed that by the end of 2025 the average asking price had reached CZK 177,631 per square meter, an 8.8% year-on-year increase.
Despite rising prices, 7,800 new apartments were sold in Prague in 2025, 8.3% more than the previous year and surpassing the previous record set in 2021. These figures confirm that the Prague real estate market continues to expand, driven by solid demand and sustained interest in new residential developments.

Source: Fxstreet