The total supply of new apartments in Prague remained slightly below 5,900 units in Q1 2025. Although a number of new projects entered the market in locations such as Hostivař, Hloubětín or Barrandov, strong demand was able to immediately absorb this new supply.

Over 2,100 units were sold in the first quarter, which means an absorption rate exceeding 35%. This is the sixth quarter in a row that the market has shown an increasing absorption rate. This trend indicates a rapid turnover of supply and the restoration of buyer confidence. Demand increased by more than 15% compared to the previous quarter, almost matching the Covid-19 pandemic records with 2,118 units sold publicly. This strong selling pressure was of course reflected in prices.

The average asking price of new buildings reached CZK 164,000 (€6,543) per sqm in Q1, which represents a year-on-year growth of 7.5%. 

“Smaller apartments up to 30 sqm are an investment hit today. Buyers are looking for affordable units with high rentability, and these apartments offer them the ideal combination of price, yield and quick sale,” added Martin Decký, CEO of BuiltMind. 1+kk (kitchen corner) apartments make up 27% of the total supply, while this category has the highest annual liquidity on the market (61%). This means that almost 2 out of 3 available small apartments are sold within three months of the offer being published. 

While average wages in Prague are growing at a rate of around 7% per year, apartment prices are growing slightly faster – around 7.5%. The consequence is that low-income groups are actually moving away from the possibility of owning their own homes, and interest in even smaller and more affordable apartments is growing, especially among investors and singles.

In terms of public sales recorded on project websites, Central Group once again performed best in the first quarter of 2025, reaching 320 publicly sold housing units, followed by FINEP with 132 public sales. Other developers also performed well, with as many as 5 companies reaching more than 100 publicly sold units per quarter.

Interest rates fell below 4% at the beginning of 2025, with the Czech National Bank reducing the base rate to 3.75%. According to the current forecast, rates are expected to gradually decline to 3%, where they should stabilize by the end of 2025 and during 2026. “If rates stabilise, we expect sales to stabilise at around 1,700 apartments per quarter. This is still well above the long-term average, which historically ranges between 1,200–1,500 apartments sold,” says Martin Decký. At the same time, inflation is slowing, falling to 2.5% in Q1 according to the CNB, and the outlook expects it to decline further to the target level of 2%. This stabilisation of the macroeconomic environment increases consumer confidence and contributes to a greater willingness to invest in residential real estate.