PRAGUE: CZK 200,000 per square meter? Reality or a nightmare?

18. 12. 2025

The situation in Prague’s real estate market remains very dynamic in terms of price per square meter. The offered price in the third quarter of 2025 exceeded the amount of CZK 173,000 per square meter, which is a year-on-year increase by almost 8%. However, mortgage rates are still far from the dreamed-of 3%” says Filip Šejvl, Managing Partner, Philip & Frank.

Although property prices have been rising continuously, developers are having a heyday. In the third quarter, 1,700 flats were sold in Prague alone, which makes a total of six thousand from the beginning of the year. However, there has been a change to customer preferences. The highest demand is for smaller flats (1 or 2 rooms + kitchenette) of 30–50 square meters. Such flats make up 75% of total sales. Demand for larger flats has been stagnating or decreasing.

Filip Šejvl adds: “The continuous increase in property prices is a trend caused by several factors. One of them is theinefficient building permit procedure, whose effectiveness and digitisation are out of sight. Another factor is the continuously rising prices of construction work and inputs. Last but not least, the Metropolitan Plan has not been approved yet, which also contributes to the price increase.”

The new Metropolitan Plan is an essential document, which should make it possible for about 350,000 new flats to be built in Prague, especially within Prague’s numerous brownfields.Its draft is now being presented by its authors to the general public (citizens, associations, land owners, investors, developers) and to the individual metropolitan districts. The City of Prague representatives will be approving this crucial document next year.

Whether or not that will happen and whether the Metropolitan Plan will really have a positive impact on property prices in Prague is still to be seen. However, everything indicates that property prices in Prague are quickly approaching the “magic” amount of CZK 200,000 per square meter – and not only in premium locations.