Last year, 8,191 new homes were approved in Prague – a significant increase compared to 2023. However, this figure remains well below the 10,000 new homes needed annually, further exacerbating the housing shortage in the Czech capital.
According to recent data from the Czech Statistical Office (ČSÚ), a total of 8,191 homes were approved in Prague last year, including 6,967 in multi-family buildings. This represents a sharp year-on-year increase (+43% and +64% respectively), though this is mainly due to the low comparison base of 2023.
More importantly, the threshold of 10,000 approved homes was once again not reached last year – a minimum number required annually for the city’s development. This target has not been met since 2006, leading to a shortfall of nearly 90,000 homes in Prague over this period.
The persistent housing shortage is the main reason why asking prices for new homes in Prague have risen by more than 160% over the past decade. Last year, average asking prices increased by 7% to CZK 163,203/m², rising faster than expected at the beginning of the year. Sale prices rose even more sharply, by 10% to CZK 156,851/m². In both cases, new record highs were reached, according to a recent market analysis by Central Group, Skanska Residential, and Trigema.
Around 7,200 homes were sold in the Czech capital last year – an increase of 80% compared to the previous year. However, supply remains stagnant and is unable to keep up with strong demand.
A faster approval process remains out of sight, partly due to issues with the new Building Act and digitalisation. As a result, housing prices in the capital are expected to continue rising by at least 5% to 10% per year in the coming years.
