Get all the data you need about the real estate market in Prague
SUMMARY
Prague’s property market is very strong right now: buyers are still absorbing new homes at close to record volumes, prices are rising by around 11% a year, and developers have not had to cut prices even as more apartments come onto the market.
The striking part is that the rebound is no longer just a recovery from the 2022–2023 mortgage shock. Prague sold roughly 3,750 new homes in the first half of 2026 after a record 2025, so demand has stayed strong after the easy comparison period ended.
More supply has not yet changed the balance of power. New-build inventory reached about 6,450 units, the highest advertised level in more than a decade, but that still represents only about ten months of sales at the current pace.
Prices are also rising across several independent datasets, not just in developer marketing. New-build transaction prices sit around CZK 183,000/m², while asking-price series from Deloitte and the major developers are moving in the same direction.
The construction picture is less healthy than the sales numbers suggest. Housing starts jumped in Q2, but residential-building permits fell almost 30% year on year in both Q1 and Q2, which makes the current burst of new supply look difficult to sustain.
Affordability is reshaping what people buy. Small 1+kk and 2+kk apartments now account for almost three-quarters of new-build sales, and Prague 5, Prague 9 and Prague 10 dominate transactions because central districts have moved far beyond mainstream budgets.
Mortgage demand has recovered even without cheap money. New mortgage rates reached about 4.90% in July, yet lending during the first seven months of 2026 was roughly CZK 67 billion higher than a year earlier.
Rents are no longer keeping pace with sale prices. Prague rents slipped in the latest quarter while apartment values kept climbing, leaving gross rental yields around 3% to 4% and making leveraged investment much harder to justify on cash flow alone.
That gap between prices, rents and wages is where the market looks stretched. New-home prices are rising about twice as fast as Prague wages, while a 60 m² new apartment costs close to 14 years of one average gross salary.
Prague can stay expensive because demand is still strong and the future construction pipeline remains constrained. But from here, buyers are relying more heavily on future appreciation: affordability is worse, financing is not getting easier, and rental income offers much less support than it did when prices were lower.
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Is Prague’s property market booming again?
Yes. Prague’s property market is clearly strong again, with new-home sales running close to historical highs even at record prices.
Around 1,950 new apartments were sold in Prague in the second quarter of 2026, according to the joint market data published by Central Group, Trigema and Skanska Residential. That was 11% more than a year earlier and more than 8% above the previous quarter. Roughly 3,750 new homes were sold during the first half of the year, making it the third-strongest first half in the developers’ historical series.
That follows an exceptional 2025, when around 7,800 new apartments were sold. It was the highest annual result in the series and almost twice the depressed sales levels seen during the 2022–2023 mortgage shock.
The rebound phase is behind us now. Buyers have kept coming even after apartment prices returned to records, and demand remains strong despite mortgage borrowing becoming slightly more expensive lately.
| Prague new-build market | 2022–2023 slowdown | 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|
| Market condition | Very weak | Record sales | Strong | Stronger |
| Apartments sold | Roughly half recent levels | ~7,800 | ~1,800 | ~1,950 |
| Q/Q sales change | — | — | — | >8% |
| Q2 Y/Y sales change | — | — | — | +11% |
Are Prague apartment prices still rising today?
Yes. Prague apartment prices are still rising quickly, and the latest transaction data give us little evidence of a broad slowdown.
Central Group, Trigema and Skanska put the average selling price of a new Prague apartment at CZK 182,845 per square metre in Q2 2026, almost 11% higher than a year earlier. Average asking prices reached CZK 187,781/m², up more than 10%.
A separate Flat Zone transaction series currently shows almost the same result. Its average first-sale price reached roughly CZK 183,100/m², 2.3% above the previous quarter and about 11% higher year on year. Since early 2023, that series has risen by roughly CZK 27,000/m², or 17%.
Deloitte’s Develop Index confirms the direction from a third dataset. Average advertised new-build prices moved from CZK 171,700/m² in Q3 2025 to CZK 176,600 in Q4, CZK 180,300 in Q1 2026 and CZK 182,700 in Q2.
Three different datasets are telling us basically the same thing: Prague’s new-build market is still setting higher prices quarter after quarter.
| Prague new-build price measure | Earlier level | Latest level | Recent change | Source |
|---|---|---|---|---|
| Actual developer sales | ~CZK 165k/m² Y/Y comparison | CZK 182,845/m² | ~+11% Y/Y | Central Group / Trigema / Skanska |
| Flat Zone transactions | — | ~CZK 183,100/m² | ~+11% Y/Y | Flat Zone |
| Deloitte asking prices | CZK 171,700/m² Q3 2025 | CZK 182,700/m² Q2 2026 | ~+6.4% | Deloitte |
| Developer asking prices | ~CZK 170k/m² Y/Y comparison | CZK 187,781/m² | >+10% Y/Y | Central Group / Trigema / Skanska |
Get fresh and reliable data on the Prague property market
A renovated flat inside the old town is priced on the postcard and on a nightly income the rules no longer allow. Where asking prices sit furthest from what places actually earn and resell for.
Why are Prague prices rising when more apartments are for sale?
Prague prices are still rising because the recent increase in apartments for sale has not been large enough to overwhelm demand.
About 6,450 new apartments were available at the end of Q2, according to Central Group, Trigema and Skanska. That was 18% more than three months earlier, around 12% more than a year earlier and the highest advertised new-build inventory in more than a decade.
On the surface, that sounds like a big shift toward buyers. Yet around 1,950 units were being sold each quarter. At that sales pace, 6,450 homes amount to only about 3.3 quarters of demand, or roughly ten months of sales.
Developers have also been releasing phases of large projects in districts where construction is concentrated, so rising advertised inventory does not mean Prague suddenly has thousands of unwanted homes.
The better test is whether developers have had to discount those units to sell them. So far, they have not. Sales increased in Q2 while average selling prices also climbed almost 3% from the previous quarter.
Is Prague finally building enough homes?
No. Prague has recently started more homes, but the official permit data still give us very little confidence that construction can stay high for long.
The Czech Statistical Office recorded 1,449 housing starts in Prague in Q1 2026, down 49.4% from a year earlier. Q2 then swung dramatically in the other direction, with 2,788 starts, up 59.2% year on year.
That gives us 4,237 housing starts across the first half. Completions reached 2,266 in Q1 and another 1,240 in Q2, for a total of 3,506.
The problem appears earlier in the construction pipeline. Prague issued 497 building permits and notifications during Q2, 20.1% fewer than a year earlier. It was the largest decline recorded by any Czech region. Permits for residential buildings fell even faster, by 29.7%.
Q1 showed almost exactly the same weakness: total permits fell 20.6% and residential-building permits 28.4%.
One strong quarter for housing starts tells us much less than two consecutive quarters of falling permits. Prague can get temporary bursts of construction when large projects start together, while the flow of projects entering the pipeline remains weak.
| Prague construction | Q1 2026 | Q2 2026 | H1 2026 | Y/Y picture |
|---|---|---|---|---|
| Homes started | 1,449 | 2,788 | 4,237 | -49.4%, then +59.2% |
| Homes completed | 2,266 | 1,240 | 3,506 | Higher in both quarters |
| Total permits/notifications | -20.6% Y/Y | -20.1% Y/Y | — | Persistently weak |
| Residential-building permits | -28.4% Y/Y | -29.7% Y/Y | — | Even weaker |
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Where are people actually buying apartments in Prague?
Prague buyers are concentrating heavily in Prague 5, Prague 9 and Prague 10, where large projects still offer more choice and lower prices than the centre.
Prague 5 generated roughly one-quarter of new-apartment sales during Q2. Prague 9 and Prague 10 each accounted for around another fifth. Add Prague 4 and those four districts represented close to three-quarters of new-home transactions.
The geography of available housing looks similar. Prague 9 held around 23% of advertised new-build inventory, while Prague 5 and Prague 10 each had roughly 19%. Prague 1 and Prague 2 together accounted for only around 2%.
Price explains much of that concentration. Central Prague has moved into another league. Developer transaction data put Prague 2 above CZK 271,000/m² and Prague 1 around CZK 239,000/m², compared with roughly CZK 171,000 in Prague 9 and CZK 159,000 in Prague 10.
Deloitte’s latest index tells the same story, with Prague 2 at CZK 265,100/m² and Prague 10 at CZK 166,800/m².
For a 60 m² apartment, that district gap can easily exceed CZK 5 million. Buyers looking for a normal home increasingly have to compromise on location before they can meaningfully compromise on price.
| Prague area | Approx. new-build price | Current position | What we see |
|---|---|---|---|
| Prague 2 | >CZK 265k–271k/m² | Highest-priced | Very scarce central supply |
| Prague 1 | ~CZK 239k/m² or more | Ultra-expensive | Tiny share of new supply |
| Prague 7 | ~CZK 232k/m² | Expensive inner city | Strong premium demand |
| Prague 9 | ~CZK 171k/m² | Below city average | Major sales and development hub |
| Prague 10 | ~CZK 159k–167k/m² | Cheapest major new-build area | Strong affordability-driven demand |
Why are small apartments dominating Prague sales?
Small Prague apartments dominate sales because buyers are increasingly cutting the amount of space they purchase to keep the total price within reach.
The 2+kk format accounted for roughly 44% of new-build transactions during Q2, while 1+kk apartments made up another 29%. Combined, those two categories generated almost three-quarters of all sales.
Small homes are actually more expensive per square metre. Average 1+kk sales exceeded CZK 206,000/m². A 2+kk averaged close to CZK 180,000/m², while 3+kk apartments were below CZK 170,000/m².
So buyers are paying a premium for compact units because the final purchase price matters more than getting the cheapest square metre. Someone who cannot stretch to a CZK 12 million family apartment may still manage a CZK 7 million or CZK 8 million smaller unit.
That is one of the clearest signs of affordability pressure in Prague today. Demand remains strong, but buyers are adapting by purchasing less space.
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Are mortgages making Prague property prices rise again?
Yes. The recovery in Czech mortgage lending is giving Prague buyers much more purchasing power again, even though mortgage rates have recently moved higher.
Banks and building societies issued CZK 30.8 billion of genuinely new mortgages in July, according to the Czech Banking Association’s Hypomonitor. The 16% monthly drop largely matched the normal summer slowdown, and seasonally adjusted lending was essentially unchanged from June.
More tellingly, new mortgage lending reached around CZK 247 billion during the first seven months of 2026. That was roughly CZK 67 billion above the same period a year earlier.
Buyers are borrowing aggressively despite an average new mortgage rate of 4.90%, up from 4.79% in June and 4.67% in May.
Prague demand is holding up while financing has become a little more expensive. Stronger incomes, accumulated savings, fear of further price increases and a greater willingness to accept today’s borrowing costs all appear to be helping.
The current mortgage rate is also far removed from the 1.95% low recorded by the Hypomonitor in early 2021. Prague’s latest upswing clearly does not require ultra-cheap money.
Can an average Prague salary still buy an apartment?
Barely on a single income. Prague wages are rising, but apartment prices have been pulling away from salaries again.
The Czech Statistical Office put Prague’s average gross monthly wage at CZK 66,459 in Q2 2026, 6.2% higher than a year earlier. After inflation, real wages were up 4.1%.
New-apartment prices grew around 11% over a similar period. Buyers therefore gained purchasing power through higher wages while losing even more ground through house-price inflation.
At roughly CZK 183,000/m², a 60 m² new apartment costs about CZK 11 million. That represents almost 14 years of one average Prague gross salary before taxes or normal living expenses.
Financing makes the pressure easier to visualize. With 20% down, a CZK 11 million apartment leaves a mortgage of around CZK 8.8 million. At roughly 4.9% over 30 years, repayments land around CZK 47,000 a month.
That is why the market can look strong while affordability looks terrible. Active buyers are increasingly couples, households with significant existing equity, people choosing smaller homes and buyers moving toward Prague’s cheaper outer districts. One average salary has very little chance of carrying the average new apartment comfortably.
| Affordability example | Current level |
|---|---|
| Prague average gross monthly wage | CZK 66,459 |
| Approx. new-build price | ~CZK 183,000/m² |
| Approx. price of 60 m² new apartment | ~CZK 11.0m |
| Price / one average annual gross salary | ~13.8× |
| Approx. 80% mortgage | ~CZK 8.8m |
| Approx. repayment at 4.9%, 30 years | ~CZK 47k/month |
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Are Prague rents still rising fast?
No. Prague rents remain expensive, but the latest data show that rental growth has cooled noticeably.
Deloitte’s latest Rent Index put the Prague average at CZK 462/m² per month in Q2, down 0.9% from the previous quarter. Prague was one of many Czech markets where rents softened even as the national average rose 1.2%.
The district picture was mixed rather than uniformly weak. Prague 1 rents fell 3%, Prague 8 dropped 2.9%, Prague 4 declined 2.2% and Prague 10 fell 2%. Prague 9 moved the other way, rising 3.8%.
The highest rents were still around CZK 493/m² in Prague 7, CZK 490 in Prague 1 and CZK 482 in Prague 2.
One quarter does not establish a lasting rental decline, especially after several years of very strong increases. But landlords clearly have less pricing momentum than apartment sellers right now, and investors should pay attention to that gap.
Do Prague rental yields still make sense for investors?
Prague rental yields are currently thin, and leveraged investors have a much harder case to make than buyers focused on long-term capital appreciation.
Using an average Prague rent around CZK 462/m² and a resale asking price around CZK 154,000/m² gives a rough citywide gross yield of about 3.6%. That comes before vacancy, repairs, service charges, management, tax and buying costs.
New apartments look tighter. Deloitte puts rents in new development projects around CZK 498/m², while recent transaction prices for new homes are around CZK 183,000/m². That works out to roughly 3.3% gross.
Meanwhile, newly issued mortgages average about 4.9%. Borrowing money at close to 5% to acquire an asset yielding around 3% to 4% before expenses is difficult to turn into attractive immediate cash flow.
Financing rules have also become tougher for investors. Since April 2026, the Czech National Bank has recommended a maximum 70% loan-to-value ratio and a debt-to-income ceiling of seven for investment mortgages, including purchases of a third or subsequent residential property.
A CZK 10 million investment apartment can therefore require roughly CZK 3 million of equity before transaction costs. Investors who still buy today are making a much bigger bet on future rent increases, capital appreciation or both.
| Prague rental example | Resale apartment | New apartment |
|---|---|---|
| Approx. price/m² | CZK 154k | CZK 183k |
| Approx. rent/m²/month | CZK 462 | CZK 498 |
| Rough gross yield | ~3.6% | ~3.3% |
| Average new mortgage rate | ~4.9% | ~4.9% |
| Immediate leveraged cash-flow case | Weak | Weaker |
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Is population growth enough to explain Prague’s housing boom?
No. Population growth supports Prague housing demand, but it is far too slow to explain double-digit new-home price increases on its own.
Prague finished 2025 with around 1.407 million registered residents, roughly 9,200 more than a year earlier. The entire increase came from migration. Net migration added more than 10,000 people, while deaths exceeded births.
Those numbers matter because Prague continues to attract workers and international residents, but annual population growth was well below 1%.
The first quarter of 2026 also showed a small registered population decline of about 1,500 people. That figure needs care because changes in temporary-protection registrations affected the migration statistics, so we would not treat one quarter as evidence that people are suddenly leaving Prague.
Demographics alone cannot explain prices rising around 10% or more. Mortgage lending has recovered, real wages are rising, the construction pipeline remains difficult and buyers appear willing to pay today rather than gamble on cheaper housing later.
Could Prague’s larger supply of apartments finally stop price growth?
Possibly, but Prague would need several more quarters of rising inventory and weaker sales before we could call it a real buyer’s market.
The recent rise in available new homes is meaningful because buyers now have more choice than they did during the tightest period of the market. Yet sales are still absorbing that choice quickly.
The more revealing development is price behavior. Developers added a large amount of inventory during Q2 and still sold more apartments than during Q1, while average transaction prices rose.
If supply eventually grows while transactions fall, developers will have to compete harder for buyers. That could mean slower increases, better incentives or outright discounts.
We have not reached that stage. The weak permit pipeline also limits how confident we can be that today’s higher inventory will keep expanding year after year.
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Is Prague’s property market starting to overheat?
Yes, parts of Prague’s housing market now look stretched, especially when we compare property prices with rents, wages and borrowing costs.
New-home transaction prices are around 11% higher than a year ago. Prague wages are growing closer to 6%. Rents actually edged lower in the latest quarter. Mortgage rates sit around 4.9%.
Those four numbers pull in different directions, and property prices are clearly the outlier.
The Czech National Bank has also responded to investment risk by recommending tighter leverage limits for investment mortgages. That does not mean the CNB expects a crash, but regulators are clearly paying attention to buyers taking on debt for additional properties.
There are still good reasons Prague can remain expensive. Planning is slow, construction permits are weak and buyers continue to absorb new developments. Even so, a market where sale prices keep racing ahead of rents and incomes becomes more dependent on future appreciation.
That makes today’s Prague market less forgiving. Buyers can still make money, but the price paid at entry matters much more than it did when yields were higher and mortgages cheaper.
What could actually cool Prague property prices now?
Persistently expensive mortgages, weaker affordability and slower investor demand could cool Prague property prices, although a broad crash would probably require a much bigger demand shock.
Mortgage rates have recently moved from 4.67% to 4.79% and then 4.90%. If rates stay around this level, buyers cannot count on falling financing costs to offset another year of strong price increases.
Affordability is already doing part of the adjustment. Small apartments dominate sales, outer districts capture most transactions and one average salary is nowhere near enough to comfortably finance the average new home.
Investors also face gross yields around 3% to 4%, financing costs close to 5% and tighter loan-to-value rules. Some marginal investment demand should disappear under those conditions.
A major construction surplus would create a much stronger brake, but Prague currently shows little evidence of one. Residential-building permits fell almost 30% year on year in both Q1 and Q2.
The easiest part of Prague’s recovery is probably over. Future price growth has to fight against affordability and expensive credit much more directly.
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What is happening in the Prague property market now?
Prague’s property market is currently very strong: buyers are purchasing homes at close to record volumes, new-apartment prices are rising by around 11% a year, mortgage lending has recovered sharply and developers are still getting higher prices.
The underlying market has become much tougher for buyers, though. A typical 60 m² new apartment now costs around CZK 11 million, close to 14 years of one average Prague gross salary. Smaller apartments account for almost three-quarters of new-build sales, while Prague 5, 9 and 10 dominate transactions because central districts have moved far beyond mainstream budgets.
Investors face an even less forgiving equation. Prague rents remain high but recently softened, gross yields are commonly around 3% to 4%, mortgage rates are close to 5% and investment borrowers now face stricter leverage rules. Rising values rather than immediate rental cash flow are carrying much of the investment case these days.
Supply is the reason we still would not bet on an imminent broad price fall. Prague has more new apartments available than at any point in more than a decade, yet sales remain strong and prices keep rising. At the same time, residential-building permits have fallen by roughly 30% year on year for two consecutive quarters.
Our current judgment is quite sharp: Prague is still a seller-friendly market, but prices are entering a harder phase. Demand is strong enough to keep pushing values higher for now, while wages, rents and financing conditions are no longer keeping pace. Unless construction improves much more consistently, Prague can stay expensive. The bigger question from here is how long buyers can continue absorbing price increases that are running faster than their incomes.
OUR METHODOLOGY
To answer what is happening in the Prague property market now, we broke the market into the parts that actually determine its direction: transaction activity, price momentum, available supply, the construction pipeline, financing, affordability, rental economics, investor conditions and demographic support.
We prioritized the freshest direct evidence available. Official Czech Statistical Office and Czech National Bank data were used for construction, wages, population and lending rules; Czech Banking Association data were used for mortgage volumes, mortgage rates and the Flat Zone transaction series; and first-hand developer data from Central Group, Trigema and Skanska Residential were used for Prague’s new-build sales, prices, inventory, district distribution and apartment-size mix.
We assessed those indicators together rather than treating one headline number as the market. Prague currently has more apartments available while sales remain strong, transaction prices are still rising, starts are volatile, and permits are weak.
Where several datasets measured a similar trend, we used them as cross-checks rather than forcing them into one series. Developer selling prices, Flat Zone transaction prices, Deloitte asking prices and Deloitte rents measure different parts of the market, so we kept those distinctions intact and looked for agreement in direction.
We also calculated a few derived indicators to make the raw data easier to interpret, including months of new-build inventory at the current sales pace, the cost of a 60 m² apartment relative to an average Prague salary, an indicative 30-year mortgage repayment, and rough gross rental yields. These are analytical checks rather than forecasts.
Our overall judgment comes from the balance, consistency and recency of the evidence. Strong sales and rising prices point to a seller-friendly market today, while weak permits, poor affordability, softer rents and expensive financing show why the next phase is likely to be harder than the rebound that came before it.
Key sources used for this analysis include: Trigema / Central Group / Skanska Residential on Q2 2026 new-build sales, prices, inventory and buyer mix, their Q1 2026 Prague market analysis, their full-year 2025 market review, Deloitte Develop Index, Deloitte Rent Index, Czech Banking Association Monitor / Flat Zone transaction prices, Czech Statistical Office Q1 2026 Prague construction data, Czech Statistical Office Q2 2026 Prague construction data, Czech Statistical Office Q2 2026 Prague wage data, Czech Statistical Office 2025 Prague population data, Czech Statistical Office Q1 2026 population data, CBA Hypomonitor for July 2026 mortgage lending and rates, CBA Hypomonitor for June 2026, the CBA long-term mortgage-rate series, and the Czech National Bank decision on investment-mortgage limits.
Everything a foreign buyer should know before buying in Prague
The pack also covers the reservation contract an agent will put in front of you first, and whether the flat is even yours to register.
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