Transaction Activity Stabilises at a Higher Level
The Czech residential market maintained strong momentum in 2025. Total transaction volumes increased by 11% year-on-year, representing approximately 6,500 additional apartment and house sales compared to 2024. The market recovery that began in early 2023 continued, although at a more moderate pace than in 2023–2024. Sales of existing apartments grew by 12%, with Prague and the Ústí Region showing the highest activity. New apartment sales were strongest in Prague, the South Moravian Region and the Central Bohemian Region.
By the end of 2025, nearly 17,500 newly built apartments were available in developers’ portfolios. Supply increased year-on-year in all regions except Prague. House transactions increased by 4%, with the strongest activity in the Central Bohemian Region.
Prices Continue to Rise Across All Segments
Residential property prices grew by 12% on average nationwide in 2025. The strongest price growth was recorded in existing apartments:
- Existing apartments: +18% nationwide
- New apartments (first sales): +9%
- Resale of relatively new apartments: +13%
- Family houses: +14%
At the end of 2025, the average prices stood at:
- CZK 80,613/m² (brick older apartments)
- CZK 70,987/m² (pre-fab apartments)
- CZK 139,820/m² (new apartments – developer sales)
- CZK 131,608/m² (resale of new apartments)
- CZK 6.2 million (average family house price)
Price growth was most pronounced in Prague, Central Bohemia and the South Moravian Region.
Despite improved transaction volumes, the core structural issue remains unchanged: insufficient construction in high-demand metropolitan areas, particularly Prague and Brno. Long permitting processes and limited land availability continue to constrain supply.
Rental Market: Moderate Growth, Regional Divergence
Rental prices increased mostly between 4–6% nationwide, with some regions recording growth of up to 10%, particularly the Moravian-Silesian Region. Outside Prague, long-term rental supply increased significantly to more than 18,500 apartments (an increase of nearly 7,000 units year-on-year). In Prague, however, rental supply declined slightly to just over 5,000 units, approximately 500 fewer than in 2024. Rental growth in Prague ranged between 4–12% depending on location and the share of new-build apartments offered for rent.
Mortgage Market: Second Strongest Year in History
The mortgage market recorded substantial growth in 2025:
- Volume of new mortgages: CZK 321 billion (+41% YoY)
- Total mortgage market (including refinancing): CZK 406 billion
- Number of new mortgages: 76,000 (+ approx. 25%)
- Average mortgage amount: CZK 4.21 million (+15%)
Mortgage activity rose from 2.6% of GDP in 2024 to 3.8% of GDP in 2025.
Despite strong credit growth, affordability remains constrained. The average mortgage amount approached CZK 4.5 million at the end of 2025, with average monthly instalments reaching approximately CZK 22,800 – exceeding nominal wage growth. The outlook for early 2026 suggests continued mortgage activity, although renewed affordability pressure and regulatory constraints may moderate further expansion.
Widening Regional Disparities
Regional price differences remain one of the defining features of the Czech residential market. Older apartments in Prague and Brno are on average three times more expensive than in towns with fewer than 10,000 inhabitants, and roughly twice as expensive as in other larger cities. For family houses, the price difference between metropolitan areas and rural regions reaches almost fourfold. This divergence highlights the increasing segmentation of the Czech market between high-demand metropolitan zones and smaller regional municipalities.
“Large regional price differences – highest in Prague & Brno.”
Structural Stock Characteristics
The Czech housing stock comprises nearly:
- 2 million privately owned apartments
- 2.1 million family houses
More than 1 million privately owned apartments are located in approximately 70,000 pre-fab buildings, primarily in larger cities. Post-1990s development projects represent only a minor share of the total housing stock (approx. 305,000 units in 18,000 buildings), with nearly 80% located in Prague and regional capitals.
Outlook
The Czech residential market in 2025 demonstrated:
- renewed transaction activity,
- strong price growth across segments,
- robust mortgage expansion,
- and persistent supply-side constraints.
The fundamental imbalance between demand and new construction in metropolitan areas remains unresolved. While transaction volumes have recovered, structural supply limitations suggest that price pressures in Prague and Brno are unlikely to ease in the short term.
At the same time, widening regional disparities and evolving mortgage conditions will remain key variables shaping the market trajectory in 2026.
Sources: Flatzone and the Czech Banking Association (2026)
