Prague Apartment Prices Reach Record Highs as Demand Surges
The market for new apartments in Prague saw a dramatic rebound last year, with sales rising by 80% year-on-year. However, despite this surge, demand continues to outstrip supply, driving prices to record levels. By the end of 2023, the average asking price had climbed to 163,203 CZK per square meter, while actual sales prices rose by 10%, reaching 156,851 CZK per square meter, according to an analysis by developers Central Group, Skanska Residential, and Trigema. In the final quarter of last year alone, approximately 1,850 apartments were sold, bringing the total number of units sold in 2023 to 7,200—the second-highest figure in over fifteen years. The only stronger year was 2021, when 7,450 apartments were sold. This momentum is mirrored in the mortgage market, where the volume of new loans increased by 83% year-on-year. “The strong demand last year clearly shows that real estate remains a reliable and profitable investment with minimal risk and steady appreciation. I expect this trend to continue in 2024,” said Marcel Soural, Chairman of the Board at Trigema. Prices Rising Faster Than Expected According to the analysis, new apartment prices are rising faster than projections by the Czech National Bank, which has warned that price...