Friday, 27 February 2026
Residential property prices in the Czech Republic continued to climb in 2025, even as buyer activity picked up. The average price of flats and family houses increased by around 12 percent year-on-year, while the number of housing transactions grew by approximately 11 percent, according to data from the Flat Zone real estate analytics platform and the Czech Banking Association.
The figures suggest that demand remained resilient despite higher affordability pressures. Interest in home purchases was also reflected in the mortgage market, where lending volumes expanded by 41 percent year-on-year, making 2025 the second-strongest year on record. The number of newly issued mortgages rose by about 15 percent.
Regional disparities remain pronounced. Older apartments in Prague and Brno continue to command roughly double the prices seen in other major Czech cities, while homes in smaller towns with fewer than 10,000 residents can be priced at roughly one-third of levels in the two largest metropolitan areas.
According to Flat Zone Managing Director Milan Roček, improving affordability will depend heavily on accelerating construction in high-demand locations. He noted that the Czech housing market continues to suffer from insufficient development in Prague, Brno and other regional centres where long-term demand remains strongest.
In absolute terms, approximately 6,500 more residential properties were sold in 2025 compared with the previous year. Demand for older apartments was particularly strong in Prague and the Ústí nad Labem region, while new-build units saw the highest interest in the capital, South Moravia and the Central Bohemian region.
Among property types, older apartments recorded the fastest price growth, rising by about 18 percent year-on-year. Prices of new-build units increased by roughly 9 percent in first sales and around 13 percent in subsequent transactions, while family houses posted average price growth of approximately 14 percent.
The Czech housing stock remains heavily weighted toward privately owned apartments. Last year, nearly two million flats and more than 2.1 million family houses were in private ownership nationwide, with a significant share of apartments located in panel and brick residential buildings concentrated in major urban areas.
The rental market also showed notable movement. Outside Prague, more than 18,500 apartments were offered for long-term lease, an increase of nearly 7,000 units compared with 2024. In contrast, the number of long-term rental listings in the capital declined slightly to around 5,000 units. Rents typically rose between 4 and 6 percent across most regions during the year, although some locations recorded increases approaching 10 percent. In Prague, rental growth ranged roughly from 4 to 12 percent depending on the district.
From a financing perspective, the Czech Banking Association noted that housing affordability continues to be constrained by high property values and the size of mortgage loans. By the end of 2025, the average newly granted mortgage approached CZK 4.5 million, pushing the typical monthly repayment to just under CZK 22,800. That represents an increase of about 8.6 percent compared with 2024 and outpaced growth in average nominal wages.
Looking ahead, the combination of resilient demand, limited construction in key urban markets and still-elevated borrowing costs suggests that affordability will remain one of the central issues shaping the Czech residential sector in 2026.
Source: CTK
