Prague developers had about 7,200 unsold new flats on the market at the end of September 2026, more than at any point in the last ten years. Prices have not come down. The average asking price for a new flat rose to CZK 193,814 per square metre (about €8,000), 12% more than a year earlier, so a typical 55 m² new flat now costs about CZK 10.7 million, or roughly €440,000.
Sales are also lower than last year. More flats and fewer buyers would normally push prices down, but in Prague's new-build market the extra supply has so far meant more choice, not lower prices. Euro figures in this article use the official rate of CZK 24.335 per euro from 23 October 2026.
Prague's new-build market in Q3 2026
The quarterly figures that Prague's largest developers compile for the whole new-build market show this for the third quarter of 2026:
- The average asking price was CZK 193,814 per m² at the end of September, up 3% on June and 12% on a year earlier. It was the first time the average passed CZK 190,000.
- Buyers paid an average of CZK 186,408 per m² for the flats actually sold, 10% more than a year earlier.
- About 7,200 new flats were for sale, 12% more than in June and 26% more than a year earlier.
- Developers sold 1,600 new flats in the quarter, 6% fewer than a year earlier, and 5,350 in the first nine months, 11% fewer than in the record year 2025. They expect about 7,000 sales for the full year.
- The average new flat sold in the quarter cost about CZK 11.8 million (about €485,000).
The gap between the asking and the achieved price, about CZK 7,400 per m², does not mean buyers got a 4% discount across the board. Most sales happen in the cheaper districts, Prague 9 and 10 above all, which pulls the average achieved price down.
What the listings show
On 25 October 2026 we checked these figures against the listings on the largest Czech property portal. It carried 2,201 new and under-construction flats in Prague, a little under a third of all supply. The 1,937 listings with a full price averaged CZK 193,397 per m², almost exactly the developers' figure. Half of them cost more than CZK 11.5 million, and the typical listed flat had 60 m².
Price cuts are rare. Only 27 of those listings, about 1.4%, were marked as reduced. We found 88 new flats priced at CZK 6 million (about €247,000) or less, and 81 of them were 1+kk studios with a typical size of 29 m². What that budget buys across the whole market is covered in our article on what €250,000 buys you in Prague.
About one in ten new-build listings showed a price below CZK 100,000 per m². Most of these were cooperative flats, where the advert shows only the part paid upfront and the rest is repaid through the cooperative's loan. The real price of the flat is much higher, so always ask for the total price, the size of the cooperative loan and the monthly payment. Our guide to cooperative versus personal ownership explains what you actually own in each case.
Fewer sales, higher prices
Mortgages got more expensive this year. The average offered mortgage rate was 4.89% in March 2026 and 5.79% in October. The rates people actually signed averaged about 5.1% in September. Since April 2026, Czech banks have also applied stricter rules to mortgages for buy-to-let purchases, which usually means a third or further property.
As a model example, not a forecast: a 55 m² flat at the average asking price of CZK 10.66 million, with an 80% mortgage of CZK 8.53 million over 30 years, costs about CZK 50,000 (€2,050) a month at 5.79%. At March's 4.89% it was about CZK 45,200 (€1,860). The buyer also needs about CZK 2.1 million of their own money, plus the purchase costs listed in our guide to how much it costs to buy a flat in Prague.
Demand is still strong. Q3 sales were above the long-term average of about 1,500 flats a quarter for the eleventh quarter in a row, and the first nine months of 2026 were about 20% above the ten-year average for the same period. Developers are selling less than in their record year but more than usual, so they have no reason to cut prices across the board. They do not expect prices to turn soon either.
Why more flats haven't meant lower prices
7,200 flats sounds like a lot, but at this year's pace of sales it is roughly one year of supply. Prague also permits far fewer homes than it needs. The city's planners say it should permit and build at least 10,000 new flats a year, and it has not permitted that many in a single year in the last 20 years. Between January and August 2026, building offices approved 4,848 flats in apartment buildings, 27% more than a year earlier.
At the same time, a record number of flats are being built. In mid-2026, 23,300 flats were under construction in Prague, 43% more than a year earlier and the most since tracking began in 2010. Developers started 6,520 flats in the first half of 2026 alone, more than in any half-year before.
These flats will reach the market over the next few years, and there are two plausible ways it goes. If mortgages stay expensive and sales don't recover, developers will compete harder for buyers, first with incentives and discounts on larger, pricier flats and in less popular locations. If rates settle over the winter and buyers come back in spring 2027, the market absorbs today's supply and prices keep rising. Neither outcome is certain.
Where new flats sell, and which ones
About three quarters of Q3 sales were in Prague 5, 8, 9 and 10, with Prague 5 and Prague 9 taking about a quarter each.
Prices differ by tens of percent between districts. The cheapest new flats are in Prague 9 and 10, at about CZK 170,000 to 175,000 per m². Prague 7 averages about CZK 217,000, Prague 2 about CZK 282,000 and Prague 1 about CZK 319,000, though very few flats sell there. Five districts are above CZK 200,000 per m².
Buyers mostly choose small flats, because the total price is lower and they rent out easily. In Czech listings, "kk" means the kitchen is a corner of the living room, so a 2+kk has a living room with kitchenette plus one bedroom.
- 2+kk flats made up 45% of sales at about CZK 184,000 per m². A typical listed new 2+kk has 52 m² and costs CZK 9.6 million (about €394,000).
- 1+kk studios made up 27% of sales and are the most expensive per square metre, at over CZK 210,000. A typical listed new 1+kk has 33 m² and costs CZK 6.8 million (about €279,000).
- 3+kk flats are the cheapest per square metre, at about CZK 168,000. A typical listed new 3+kk has 80 m² and costs CZK 14 million (about €575,000).
New flats are also getting smaller. The average new flat sold in Prague in the first half of 2026 had 56.3 m², down from 61.9 m² in the first half of 2023.
What this means if you're buying
Use the choice
With 7,200 flats on offer, you can compare and walk away. Look past the price per square metre to how the flat works day to day: where the wardrobe, washing machine and pram go, whether there is a cellar storage unit, and how much floor area the hallway takes. Two 50 m² flats can differ in usable space more than the floor plan suggests.
Compare new with older
Older Prague flats were advertised at about CZK 160,000 per m² in Q3 2026, so new flats cost roughly a fifth more. On a 55 m² flat that is about CZK 1.9 million (about €78,000), enough for a full renovation. A new flat comes with a warranty, lower energy bills and often the option to buy a parking space. How the market for older flats is moving is covered in our piece on the October 2026 market shift.
Don't expect a reduced price, but ask
Even when a developer won't lower the price of the flat, it is worth asking for a parking space or cellar included in the price, a contribution to the kitchen, or a more favourable payment schedule, especially in projects that are selling slowly.
Our view
We see the record supply as good news for buyers, even though prices haven't reacted. If you are buying a home, you can choose the layout, the floor and the street for the first time in years instead of taking what is left. We would not bet on a significant fall in new-build prices, though. As long as sales stay above the long-term average, developers don't need to cut prices, and if buyers return in spring, the supply will shrink quickly.
We are more cautious about buy-to-let. We think small flats of 30 to 40 m² are the best investment in Prague, because they are easy to rent out and easy to sell later. New 1+kk studios, however, are the most expensive layout per square metre. As a model example, a 33 m² studio at CZK 6.8 million rented for about CZK 17,500 a month (€720), the average asking rent for Prague studios in Q2 2026, gives a gross yield of about 3% a year before management costs, tax and empty months. If the purchase only works on the assumption that the flat will be worth more in a few years, it is a bet on the market rather than an investment.
