Acquiring a new building will be even more expensive, developers say. Interest in real estate is still growing, but the supply remains limited.
This year and next, the prices of new apartments are set to rise, according to developers. The fact that further price increases for new builds can indeed be expected is also evidenced by data from Prague for the first quarter - sales prices here have increased by 12.5 percent to just under 160 thousand crowns per square meter year on year.
The enormous demand for buying new apartments is causing their prices to rise this year by an average of 6.9 percent nationally, according to estimates, and by another 4.6 percent in the first half of next year, as shown by the results of a study by the analytical company CEEC Research.
In a year-on-year comparison, only in Prague, which is one of the largest domestic residential markets, the prices of new apartments at the end of the first quarter climbed to new historical highs, having increased by 12.5 percent to 159,778 crowns per square meter. This was revealed by an analysis by the companies Central Group, Skanska, and Trigema.
Boosting demand
Despite price increases, developers expect a 5.7 percent increase in interest in new apartments throughout the country and a 5.4 percent increase in Prague in the second half of the year. In the first half of 2026, demand could grow by 6.6 percent nationwide and six percent in the capital city, claims a study by CEEC Research.
Interested parties appreciate the gradual decrease in mortgage interest rates. Whereas a year ago at this time, new loan rates were around 5.2 percent, they have dropped to below 4.7 percent this year. The mortgage market has seen a significant revival since last year. In March this year, banks and building societies provided loans worth nearly 33 billion crowns, which is 29 percent more than in February and 80 percent more than in the same month last year.
"Deferred demand from previous years is returning in a big way to the market, therefore, we expect a new sales record in Prague this year. However, the supply is still limited by the impotent authorization of new buildings, which is even slower due to the lack of officials than before,"
Central Group's chief Dušan Kunovský told LP-Life editorial staff about this.
Inadequate supply
The insufficient supply of any suitable housing is a sore point particularly in the most sought-after locations - in the capital city, Brno, Pilsen and Olomouc. Real estate is long-term considered one of the most stable investments and in times of geopolitical uncertainty, its role as a safe haven is even more strengthened.
The construction of apartments, according to the latest data from the Czech Statistical Office, increased by two-fifths year on year to 2607 apartments in February, in contrast, the number of completed apartments was almost half less year on year, namely 1683. The increase in the supply of new apartments this year is expected by as many as 92 percent of the surveyed companies, which is expected to be mainly due to a larger number of implemented projects.
"Although more new apartments are becoming available every quarter than in previous years, particularly due to strong demand, which motivates developers to launch as many projects as possible and the stock of pre-prepared projects from the period of deferred demand in 2022 and 2023, it is still not enough to satisfy the enormous interest and meet the long-term needs of the capital's development,"
The chairman of the Skanska Residential board, Petr Michálek, comments on the current situation in the metropolis.
Prices are rising in the secondary market too
The improved economic situation at home is also contributing to increased demand. However, the uncertain development in international trade may negatively affect the situation in the future, mainly due to the unclear customs policy of the United States and stock market fluctuations.
In case people will have to dig deeper into their pockets and will not be able to afford a new building, there are still older properties or rental housing available. We are also seeing a strong price progression with them too.
In the first quarter of this year, older flats increased in price by 13 percent year-on-year and by three percent compared to the last quarter of last year. Their average price in the Czech Republic has thus reached 103,473 crowns per square meter. In Prague, the prices of such apartments jumped by four percent quarterly and by 12 percent in a year-on-year comparison. A square meter cost 139,715 crowns.
Rent also rose by 11 percent nationwide compared to the beginning of last year. The exception is the capital, where prices are stagnating and currently amount to roughly 405 crowns per square meter.
The fact that real estate is becoming an expensive scare commodity has been known for quite some time. And it is not just in the case of Czechia. According to current data from Eurostat, their prices in the European Union have increased by more than half on average since 2010. In our country, it was even by more than 140 percent. The sooner you decide to buy one of them, the more you often save.
Sources: own querying, CEEC Research, Eurostat, Skanska, Trigema, Central Group
