Year by year, Prague’s residential deficit deepens. And year after year, the country’s voters tolerate the way residential prices climb further into the stratosphere. The latest figures suggest that neither Covid nor the inflation crisis broke this cycle that will eventually overwhelm the middle class.
According to a recent analysis, new apartment prices in Prague’s residential development projects grew faster than expected in 2024, increasing by 7% year-over-year.
Even more dramatic was the rise in sales prices, which climbed to CZK 146,961 per sqm by the end of Q2 2024, reached CZK 152,184 three months later, and hit CZK 156,851 per sqm by year’s end – representing a 10% annual increase.
In both asking prices and actual sales, these figures represent new historical maximums, with price growth exceeding the Czech National Bank’s predictions for the year.
The Czech Statistical Office reported in early February 2025 that Prague approved 8,191 apartments last year, with 6,967 in apartment buildings. While this marks a significant increase (43% and 64% respectively) compared to 2023, the rise comes from an unusually low baseline in the previous year.
The critical issue remains that the city again failed to break the 10,000-unit threshold that Prague needs annually for sustainable development. This benchmark hasn’t been achieved once since 2006, and during this period, Prague’s housing deficit has grown by nearly 90,000 units, according to Central Group executive director Michaela Váňová.
The persistent shortage has intensified pressure on the city’s housing market, with middle-income residents increasingly struggling to afford homes. The approval process for new developments continues to lag behind demand, creating a structural imbalance in the market.
Current projections indicate that without significant policy intervention or acceleration in development approvals, prices will likely continue their upward trajectory through 2025, potentially adding another CZK 10,000-15,000 per sqm by year’s end.
