Thursday, 22 October 2026
Prague’s residential property market is experiencing a shift in buyer activity, with sales of newly developed apartments declining during 2026 despite continued increases in prices and a growing selection of available properties. Developers sold 5,350 new apartments during the first nine months of the year, representing an 11% reduction compared with the same period in 2025. Nevertheless, purchasing activity remained more than 20% above the ten-year average, indicating that demand continues to be relatively strong by historical standards. The findings are based on research published on 21 October by Central Group, Skanska Residential and Trigema.
During the third quarter, approximately 1,600 new apartments were purchased in Prague, 6% fewer than in the corresponding period last year. The developers identified higher borrowing costs, stricter financing conditions for investment properties and uncertainty about future economic developments as factors influencing purchasing decisions. Despite the annual decline, quarterly sales have exceeded the long-term average of approximately 1,500 apartments for eleven consecutive quarters. The figures suggest that demand has moderated from recent levels without returning to the weaker conditions experienced during earlier market cycles.
Property prices continued to move upwards. The average advertised price of newly developed apartments reached CZK 193,814 per square metre during the third quarter, an increase of 3% compared with the previous quarter and 12% year on year. The average total asking price for an apartment reached CZK 11.8 million. Prices achieved in completed transactions were somewhat lower, averaging CZK 186,408 per square metre, although this represented an increase of 2% quarter on quarter and 10% compared with the previous year. The continued difference between asking and transaction prices illustrates the importance of distinguishing advertised property values from the amounts buyers ultimately pay.
Residential sales remained concentrated in a limited number of Prague districts. Approximately 75% of apartments purchased during the first nine months were located in Prague 5, 8, 9 and 10, reflecting the concentration of major development activity in these areas. Smaller apartments continued to attract the greatest interest, with studio-style 1+kk properties and two-room 2+kk units accounting for almost three-quarters of transactions. These layouts generally require a lower overall financial commitment than larger apartments and can also appeal to purchasers seeking rental investment opportunities. Prague 9 and Prague 10 recorded the lowest average prices for new apartments, while Prague 1 remained the most expensive location.
The distribution of sales among developers also highlighted the importance of established residential projects. According to market intelligence company BuiltMind, Central Group recorded the largest number of new apartment transactions during the third quarter, followed by Finep and UDI Group. Among individual developments, Tesla Hloubětín, Nové Chabry and British Quarter were identified as the strongest-performing projects. Their results indicate that large residential schemes continue to account for a substantial proportion of purchasing activity, particularly in districts where new housing construction is concentrated.
At the same time, the number of apartments available for purchase increased significantly. By the end of September, developers were marketing approximately 7,200 new homes across Prague, representing growth of 12% compared with the preceding quarter and 26% year on year. The increase was partly associated with additional residential schemes and subsequent development phases entering the market following planning approvals. Although the larger selection provides prospective buyers with more options, the simultaneous rise in prices suggests that the additional availability has not yet translated into a general reduction in property values.
The relationship between supply and affordability remains a central issue for Prague’s residential market. Developers continue to face expenditure associated with land acquisition, construction, financing and project preparation, all of which influence the prices required to make new developments financially viable. Central Group Chairman Dušan Kunovský has maintained that residential property remains attractive to purchasers seeking long-term financial security and protection against inflation. However, continued price increases also raise questions about the ability of households to purchase newly built accommodation, particularly when earnings do not increase at a comparable rate.
Other developers have expressed greater concern about the limits of buyer affordability. Ekospol Chairman Evžen Korec believes that prices are approaching levels beyond the financial reach of a substantial proportion of prospective purchasers. He expects greater pressure on developers to limit the total cost of individual homes, potentially resulting in smaller apartment layouts. Such a development could make some properties more accessible in terms of overall purchase price, although it would also influence the amount of living space available to residents.
The future availability of new housing remains dependent on the development pipeline and the ability of projects to progress through planning and construction. Skanska Residential Chairman Petr Michálek has identified limited access to suitable development land, administrative delays and rising construction expenses as continuing obstacles. These factors could restrict the number of homes entering the market in subsequent years, even though the current volume of advertised apartments has increased. The recent expansion in supply may therefore reflect the timing of individual project launches rather than a lasting improvement in Prague’s housing availability.
However, some market participants expect additional residential schemes to increase the selection of new apartments. BuiltMind Chief Operating Officer Tomáš Kajúch anticipates further growth in available properties as developers introduce additional phases of existing projects. Sekyra Group has commenced construction of the third stage of Smíchov City, which is planned to deliver approximately 800 apartments. UDI Group is also preparing Building A within its Side Smíchov Living development, with construction scheduled to begin in the second quarter of 2027. These projects represent part of the future residential pipeline, although their eventual contribution to completed housing supply will depend on construction progress and delivery schedules.
The latest market figures present a contrasting picture of Prague’s residential development sector. Apartment sales have declined compared with 2025, yet purchasing activity remains above historical averages, while both advertised and achieved prices continue to increase. The expansion in available properties provides greater choice, but affordability remains a significant consideration for households and developers alike. As the market approaches 2027, the relationship between new supply, construction expenditure and buyers’ financial capacity will be central to determining whether transaction volumes recover or purchasing activity becomes increasingly selective.
