Czech real estate in 2025: Five trends and tips for renters, buyers, and investors

The Czech property market is bouncing back after a challenging period marked by high interest rates and subdued demand since 2022. Unfortunately for potential homebuyers, prices are expected to keep rising this year.

As we move through 2025, several trends will shape the real estate landscape. Here’s what to expect whether you’re renting, buying, or investing in a property this year.

Property prices in Czechia are forecasted to rise significantly in 2025. Data from European Housing Services and Bezrealitky predicts that average rents will grow by 17 percent, mirroring 2024 levels.

Prague, already the most expensive rental region at CZK 412 per square meter in 2024, may see marginally slower growth. However, owner-occupied housing prices are expected to increase by 5 to 10 percent, continuing trends from the last two years. A family house in Prague now costs an average of CZK 108,000 per square meter.

TIP: With rents and prices on the rise, locking in current rates may save you money. Delaying a decision could lead to higher costs in the near future.

The demand for housing is expected to grow amid a shortage of new construction projets. Many buyers and renters are turning to older properties as an affordable alternative to expensive or unavailable new builds.

Real estate expert Lumír Kunz from real estate firm FérMakléři.cz told the Czech News Agency that a potential drop in mortgage rates could also drive up prices for well-maintained older homes.

TIP: Older properties can be more affordable and readily available. Evaluate whether their price reflects market trends and potential for future appreciation. Make sure they are compliant with energy standards.

Institutional rental housing—professionally managed apartments catering to affluent clients—is poised for further growth. Following a strong 2024, experts predict that investment funds and large companies will expand their rental housing portfolios, particularly in Prague.

For instance, Penta Real Estate plans to build hundreds of micro-apartments in the capital. Thousands of new rental units are expected in Prague in the coming years.

TIP: This sector is stable and potentially lucrative, but not cheap. For investors, focusing on long-term properties with professional management could yield reliable returns.

The family home market, heavily reliant on mortgages, remains sluggish due to elevated interest rates. Many potential buyers have stayed on the sidelines, slowing the construction of single-family homes.

Experts warn that mortgage rates are unlikely to drop significantly this year, making it harder for families to enter the market.

TIP: Families should focus on securing the best possible mortgage rates. Tools like Banky.cz provide useful comparisons of available mortgage options in Czechia.

Commercial real estate is experiencing a resurgence, with both domestic and foreign investors showing strong interest. Sectors like office buildings, hotels, and multifunctional spaces are thriving. For example, the Prague Hilton Hotel recently sold for EUR 300 million (CZK 7.5 billion).

Logistics and shopping centers also remain in high demand due to the expanding e-commerce sector. However, the office market is tight, with a lack of modern spaces driving up prices and competition.

TIP: Investing in commercial properties that meet modern standards—such as energy efficiency and flexible layouts—can yield strong returns. Focus on assets that align with EU criteria to capture future demand.