Tuesday, 14 October 2025
The cost of buying an older apartment in the Czech Republic has risen markedly, with average prices now more than a fifth higher than a year ago. Real estate data for the third quarter show that the national average price reached nearly CZK 79,000 per square metre, with no major city recording a decline.
The strongest growth came from regional centres, particularly Ústí nad Labem, where prices have jumped by more than a quarter compared to last year. Ostrava, Hradec Králové, and Plzeň also saw double-digit increases, reflecting renewed demand for more affordable housing outside Prague.
In the capital, prices of older apartments continued to rise, reaching around CZK 150,000 per square metre. For an 80-square-metre flat, that translates to an average cost of almost CZK 12 million – roughly CZK 1.3 million more than a year ago. Brno remains the second most expensive market, with average prices exceeding CZK 116,000 per square metre, while cities such as Olomouc, České Budějovice, and Pilsen are also showing steady growth.
Quarter-on-quarter figures suggest the pace of increases may be slowing slightly, with growth of between one and four percent in most areas. Analysts say the slowdown could reflect a more cautious mood among buyers after months of steady price gains.
The mortgage market has also shown signs of stabilisation. Banks offered short-term discounts on lending rates over the summer, briefly pushing the average mortgage below 4.3 percent, but those offers have since ended. Current rates remain close to 4.5 percent, and experts see little chance of a significant fall before early 2026.
Recent banking data indicate that the total value of new home loans dropped in August compared to July, though overall lending remains stronger than at the beginning of the year. According to mortgage analysts, this points to gradual recovery in housing demand, supported by expectations of future rate cuts but still limited by affordability pressures.
Economists say that, despite persistent challenges, the Czech housing market is entering a more balanced phase after several volatile years. Rising regional demand, cautious credit conditions, and limited housing supply continue to shape market dynamics, but the overall trend suggests that buyers are slowly returning – particularly in cities where prices remain well below those of Prague.
With strong regional variation and ongoing pressure on supply, property experts expect prices of older flats to remain firm through the end of the year, even if the pace of growth eases slightly in 2026.
Source: CTK
