Compared to neighboring countries, new apartments in Prague are the most expensive relative to average wages.
Buying a 70-square-meter apartment requires 14.7 years of wages—five years more than a decade ago. The average price of such an apartment is €445,000, while the average monthly salary is €2,500.
The high cost of housing exacerbates demographic and economic challenges in the Czech Republic, including declining birth rates and reduced purchasing power. Experts predict further price increases due to high construction costs, limited supply, and growing demand.
In 2021, Prague saw a record 9,500 new apartments built, but the average annual figure remains below 6,000, while the city needs 10,000–15,000 units per year. Demand is fueled by falling mortgage rates and rising rental prices, which encourage investments and property purchases.
Developers forecast a 4–5% price increase for new apartments in 2025 with each additional construction phase. To address the issue, authorities and developers are working on programs to support municipal and affordable housing projects.
