Prague builds record number of flats, but buyers are settling for less space

Figures from property consultancy iO Partners show that 23,300 apartments were under construction in the Czech capital at the end of June 2026 – a 43% increase on a year earlier. A further 6,520 homes began construction during the first half of the year, the highest half-year total recorded by the company.

But the building boom has not stopped the average size of an apartment sold from shrinking. It fell from 61.9 square metres in the first half of 2023 to 56.3 square metres in the same period this year, a reduction of around 9%.

The figures suggest that, as property becomes more expensive, buyers are adapting by purchasing less space.

Smaller flats offer a lower entry price

Of the 3,990 apartments sold in Prague during the first half of 2026, around 41% were classified as 2+kk – typically a living room with a kitchenette and a separate bedroom.

Smaller apartments offer a lower overall purchase price and can also appeal to investors seeking rental income, according to Blanka Vačková, research director at iO Partners.

However, the lower purchase price comes with a potential disadvantage: the cost of each square metre is rising particularly quickly in the smallest properties.

Prices for studios classified as 1+kk increased by almost 15% year on year to more than CZK 198,000 per square metre.

At that rate, a 30-square-metre studio would cost approximately CZK 5.94 million. This is an illustrative calculation, rather than the advertised price of a specific property.

The trend presents a difficult choice for buyers. A smaller flat may be more affordable in total, but buyers can end up paying more for each square metre than they would in a larger home.

Prague 9 leads construction

The increase in construction is concentrated in particular parts of the capital. Prague 9 accounts for 23% of all apartments currently under construction, making it the city's busiest district for residential development.

The growing number of projects could eventually help expand housing supply, but apartments under construction are not the same as homes ready for occupation. Their effect on availability and prices will depend on when developments are completed and how the new properties enter the market.

Separate figures from Deloitte's Develop Index put the average asking price of available apartments in Prague development projects at CZK 182,700 per square metre in the second quarter of 2026. The measure uses a different methodology from the iO Partners figures, so the two prices should not be treated as directly comparable.

Prague's housing market is therefore displaying two contrasting trends: construction is accelerating, but buyers are getting less space for their money.

The critical question is whether the additional supply will eventually make housing more affordable, rather than simply give buyers a greater choice of increasingly expensive, smaller apartments.