New apartment sales in Prague surge 60% year-on-year in early 2025

Prague’s residential property market saw a sharp rise in demand during the first quarter of 2025, with developers selling 2,550 new apartments—marking a 60% increase compared to the same period last year. This figure represents the highest number of new units sold in the first quarter over the past 15 years. Only the second quarter of 2021, during a previous market peak, recorded higher sales volumes.

The average listing price for new apartments in the capital reached CZK 167,947 per square meter. This reflects a year-on-year increase of approximately 10% and a quarterly increase of 2.9%. Analysts from Trigema, Central Group, and Skanska Residential attribute the uptick in demand and pricing to declining interest rates and growing investor interest, particularly during a period of stock market volatility.

Sales were strongest in districts Prague 4, 5, 9, and 10. Prague 9 offered the most affordable units, with average prices slightly above CZK 147,000 per square meter. Conversely, the highest prices were recorded in central Prague and Prague 7, where averages exceeded CZK 200,000 per square meter.

Smaller apartments—mainly 1+kk and 2+kk layouts—dominated sales, accounting for more than 75% of transactions. These units tend to be more accessible for a wider range of buyers due to their lower price points and are also popular with investors for their rental potential.

“The Prague housing market has had its best start to the year in over a decade,” said Dušan Kunovský, Chairman of the Central Group Board of Directors. “Falling mortgage rates and fears of rising prices are pushing demand higher. If the current pace continues, total sales for 2025 could exceed 8,000 new apartments, setting a new record.”

Larger apartments, particularly 5+kk units, commanded the highest average prices and are often positioned in the luxury segment. More affordable options included the widely sought-after 2+kk and 3+kk units. The average listing price for new apartments in Prague stood at CZK 10.9 million in the first quarter, while the average transaction price was lower, at CZK 9.1 million.

Despite strong demand, the number of available apartments declined by 6% from the end of 2024, totaling approximately 5,350 units. This figure is relatively unchanged from a year ago, although developers launched 1,950 new units in the first quarter—well above the long-term average of 1,400.

Petr Michálek, Chairman of the Board of Skanska Residential, warned that without faster permitting processes, the housing supply could fall further behind demand. “The offer of around 5,500 new apartments has been stagnant for the past two years. If demand remains strong and permitting doesn’t accelerate, we could see an even deeper market shortage and worsening housing availability,” he said.

Source: CTK