{"id":64968,"date":"2026-11-04T12:24:39","date_gmt":"2026-11-04T11:24:39","guid":{"rendered":"https:\/\/www.dreamville.cz\/?p=64968"},"modified":"2026-11-04T12:27:29","modified_gmt":"2026-11-04T11:27:29","slug":"prague-is-building-more-apartments-in-2026-why-are-housing-prices-still-rising","status":"publish","type":"post","link":"https:\/\/www.dreamville.cz\/en\/prague-is-building-more-apartments-in-2026-why-are-housing-prices-still-rising\/","title":{"rendered":"Prague Is Building More Apartments in 2026: Why Are Housing Prices Still Rising?"},"content":{"rendered":"

The Prague housing market in 2026<\/strong> presents an interesting contradiction: residential construction is increasing, yet apartment prices continue to rise. Recent figures show a significant acceleration in housing development, while demand remains strong.<\/p>\n

For international buyers, expats and property investors, understanding this situation is essential when evaluating opportunities in the Czech capital.<\/p>\n

Residential Construction in Prague Is Accelerating<\/h2>\n

According to the Czech Statistical Office (\u010cS\u00da), construction began on 2,788 apartments in Prague during the second quarter of 2026<\/strong>, representing a 59.2% increase<\/strong> compared with the same period in 2025.<\/p>\n

The number of completed apartments also increased significantly, reaching 1,240 units<\/strong>, a year-on-year rise of 64.5%.<\/p>\n

However, during the same period, the number of building permits and construction notifications declined by 20.1%.<\/p>\n

These figures highlight an important distinction: starting more residential projects does not immediately translate into more available homes.<\/p>\n

Several years may pass between the beginning of construction and the completion of a residential development. As a result, today’s construction activity may only affect the housing market in the coming years.<\/p>\n

Housing Supply Is Growing, but Demand Remains Strong<\/h2>\n

According to an October 2026 market analysis published by Trigema, Central Group and Skanska Residential, 5,350 new apartments were sold in Prague<\/strong> during the first nine months of the year.<\/p>\n

Although sales were 11% lower than in 2025, they remained above the ten-year average.<\/p>\n

At the same time, the number of new apartments available on the market reached 7,200 units<\/strong>, the highest level recorded in the past decade.<\/p>\n

Despite this increase, Prague continues to face significant housing needs. According to estimates from the Prague Institute of Planning and Development (IPR), cited in the analysis, the city would need at least 10,000 new apartments annually to address its accumulated housing shortage.<\/p>\n

Higher construction activity is therefore encouraging, but it does not automatically mean that supply can fully meet demand.<\/p>\n

Why Are Apartment Prices Still Increasing?<\/h2>\n

The Deloitte Develop Index<\/strong> reported that average asking prices for new apartments in Prague reached CZK 186,700 per square metre<\/strong> in the third quarter of 2026, an increase of 2.2% compared with the previous quarter.<\/p>\n

Several factors can help explain why prices continue to rise despite growing housing supply.<\/p>\n

Demand remains significant, while lengthy construction schedules limit how quickly new properties become available. Construction costs and financing conditions also influence developers’ pricing decisions.<\/p>\n

Furthermore, new housing developments are not evenly distributed throughout Prague. Some districts have a larger concentration of residential projects, while others offer fewer available properties.<\/p>\n

Therefore, building more apartments does not necessarily lead to immediate price reductions<\/strong>, particularly when demand continues to absorb a substantial share of available housing.<\/p>\n

What Does This Mean for Buyers and Property Investors?<\/h2>\n

For anyone considering buying property in Prague, the increase in residential development creates opportunities but also requires careful evaluation.<\/p>\n

More construction projects may offer buyers greater choice. However, location, transport connections, local amenities and expected completion dates remain essential considerations.<\/p>\n

Before purchasing, buyers should compare similar properties, verify construction timelines and assess their financial situation.<\/p>\n

For property investors, understanding local rental demand and competition between residential developments is equally important.<\/p>\n

Prague is building more homes, but its housing market remains complex.<\/strong> The relationship between supply, demand and property prices demonstrates why purchasing decisions should be based on individual circumstances and reliable market information rather than assumptions about future price movements.<\/p>\n

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Main sources:<\/strong><\/p>\n