Although 13% fewer units have been sold in Q2 2025 than in the previous quarter, the Prague residential market with new apartments has continued to grow strongly, according to data from BuiltMind.
The number of available units in the second quarter increased significantly by almost 9% to more than 6,400 available units. A large number of new projects have entered the market in various parts of Prague over the past period, which has led to a significant increase in demand.
“In the past period, several major projects have entered the Prague residential market, which have fundamentally affected the overall supply. In addition, we are observing more and more renovations of older apartment buildings in the central parts of the city on the market,” says Martin Decký, CEO of BuiltMind.
After six quarters of growth, the absorption rate has fallen below 30%, which is still an above-average figure in the context of recent years, and the market has nevertheless managed to absorb more than every fourth unit from the supply.
A total of 1,848 publicly offered residential units were sold on the Prague market in Q2 2025. This year's second quarter thus remained the second strongest period in terms of sales since Q3 2021. "The average asking price of Prague's new buildings rose to CZK 168,000 per sqm (€6,824) in Q2 2025, which represents a quarter-on-quarter growth of 2.7% and a year-on-year increase of almost 9%," adds Martin Decký. Smaller one-bedroom plus kitchen corner apartments are an investment hit in Prague today. Buyers are looking for affordable units with high rentability, and these apartments offer them the ideal combination of price, yield and quick sale.
Interest rates have currently fallen to 3.5% and the outlook is for them to gradually stabilise around 3% from 2025 to 2026. At the same time, the Czech National Bank expects inflation to fall to the target of 2%, which strengthens consumer confidence and supports interest in new housing.
The combination of cheaper financing and a stabilising economy creates favourable conditions for the residential market at least until the end of 2025 and further into 2026.
In terms of public sales recorded on project websites, Central Group again performed best in the second quarter of 2025, reaching 284 publicly sold residential units. FINEP traditionally follows with 212 public sales. Other developers also performed well, with up to 5 other companies achieving more than 80 publicly sold units per quarter.
