Czech real estate market faces high prices and rental burdens

The Czech real estate market is facing significant price pressures. In Prague, average offering prices for new apartments reached nearly 188,000 CZK per square meter in the second quarter. While price growth in the capital is slowing, it remains at a high level. In smaller towns with populations under 50,000, prices are rising more rapidly, increasing by over 10% to an average of 58,500 CZK per square meter.

According to the Czech National Bank, residential price growth is expected to weaken gradually, though a return to long-term averages may not occur until the second half of 2027. Key factors influencing future market stability include the state budget, new construction laws, central bank regulations, and global geopolitical events.

Housing affordability remains a critical issue. Based on projected 2026 data, renting a standard 35-square-meter apartment would consume a significant portion of net income. In Prague, rent for such a unit could account for approximately 31.5% to 42.4% of a worker's net monthly salary, depending on the specific district, such as Prague 7. In Brno, the rent burden is estimated at roughly 33.5% of net income.