Growth of new-build and offer prices of flats remains strong in the second quarter
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Recently released CSO data shows that supply prices for new and older homes slowed slightly to 3.5% quarter-on-quarter growth in Q2. However, despite this slowdown, the pace remains stronger compared to the 2024 average. In addition, June data from Flat Zone on new home sales suggests further acceleration, with prices up a preliminary 4.7% quarter-on-quarter. This is the strongest increase since Q2 2024, when new-build prices started to recover after a previous decline in 2023. The average transaction price of new flats on first sale in the Czech Republic reached 142.7k in June. CZK/m². June's month-on-month growth of 5% was accompanied by a stabilisation in the volume of completed sales, which, however, remains lower than in Q1 - due, among other things, to weaker activity outside the capital.
According to the CSO, offer prices rose by 3.5% quarter-on-quarter in Q2, which is less than the 6.3% increase in Q1, but more than the average 2.6% increase during 2024. The slowdown in growth reflects a different development in Prague, where offer prices rose by just 1.5% after jumping by almost 8% in the previous quarter. Outside the capital, however, prices have accelerated significantly - by 5.8% after a 4.4% rise the previous quarter, significantly outperforming the average quarter-on-quarter growth of 2.7% in 2024 (compared to the Prague average of 2.5%).
Year-on-year, apartment supply prices accelerated to 17% (from 15.7% in Q1), significantly outperforming the 5.1% growth rate recorded in 2024. Compared to the pre-pandemic Q4 2019, they are currently 1.7 times higher, and even 2.7 times higher compared to the end of 2013. In Prague these ratios are 1.6× and 2.6×, while in other regions they are 1.8× and 2.7×.
The acceleration in offer prices is stronger than in the case of completed transactions in the first quarter. However, this does not necessarily portend an acceleration in realized prices, as realized prices have been outpacing supply-side developments over the past five years.
For more on property prices and the methodology of tracking them, see the analysis on the CBA Monitor: "Complete" property prices according to the CZSO show a more moderate increase than housing prices for Q1-2025 + insight and challenge to the methodological kitchen
Prices of new buildings
Flat Zone's monthly data for new-builds in first-time sales (i.e. sales from developer to client) shows an average increase in transaction prices for these apartments in the Czech Republic in June 2025 of 5% month-on-month, following a 2% increase in May. In a year-on-year comparison, transaction prices for first-time sales in the Czech Republic are higher by more than 15%, in Prague by almost 12% and in the regions by more than 17%.
The average transaction price of Czech new-buildings in first sales in June 2025 reached almost CZK 143 thousand. CZK per square metre (the price of a 50-metre apartment would thus reach CZK 7.1 million). This average transaction price has thus increased by almost 19% compared to the first quarter of 2023, i.e. by CZK 23 thousand in round terms. CZK 1.14 million per sqm (in the case of a 50-metre apartment, this would be an increase of CZK 1.14 million compared to Q1-2023).
For the time being, the monthly data allows us to estimate the average price of new buildings in first sales in the Czech Republic in Q2-2025 at CZK 137 thousand. Preliminary Prague figures for Q2 look like this: average CZK 164 thousand,4.7% higher than in the previous quarter and 11.5% higher than a year ago, reaching 114% compared to Q1 2023. CZK per sqm; 3.1% QoQ; 13% YoY and the index against Q1-2023 is 105%.
An unchanged June level of transaction prices would result in a 13.2% y-o-y increase during the following quarter.
The number of first-sale apartment transactions rose slightly to 1,249 in June, with over 680 apartments dropping off developers' Prague listings and approximately 570 apartments in the regions (not just regional cities).
The number of first-time sales of new-builds in the Czech Republic in June 2025 was approximately 1.7 times the number of transactions in Q1-2023 and 2.4 times in Prague, while 1.3 times in the regions.
