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Real estate prices continue to rise, and the dream of owning a home—especially in Prague—is becoming increasingly out of reach for more and more people. Prospective buyers often face a key question: is it better to invest in a more expensive new build, or buy a cheaper apartment in an older building and plan for renovation?
When purchasing a flat, it’s never just about the purchase price. Many other factors come into play, such as the immediate surroundings, the overall condition of the building, the apartment layout, and—last but not least—the long-term costs of operation and maintenance.
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What do the numbers say?
To begin with, it’s important to understand that property prices in the Czech Republic are rising mainly due to the insufficient construction of new housing. On the Czech real estate market—especially in Prague and other major cities—there is a persistent shortage of available properties and, conversely, strong demand for virtually all types of apartments. As a result, the prices of older apartments tend to mirror the price trends of new developments in the same area.
To get a better sense of the price difference between new builds and older apartments, we looked at four regional cities and compared the average prices of 70 m² flats. All of the compared flats are located in the same or nearby areas. For older flats, we assumed a partially renovated condition for both the apartment and the building—meaning the flat is immediately habitable, but would require further renovation for comfortable living. The new builds in our comparison are all units in residential developments completed within the past seven years.
| Location | New build | Older apartment | Price difference |
|---|---|---|---|
| Prague 3 – Žižkov | Approx. 11 250 000 CZK | Approx. 8 000 000 CZK | 29% |
| Brno – Královo Pole | Approx. 11 000 000 CZK | Approx. 6 700 000 CZK | 39% |
| Plzeň – Jižní Předměstí | Approx. 7 130 000 CZK | Approx. 4 800 000 CZK | 33% |
| Ostrava – Moravská Ostrava | Approx. 5 900 000 CZK | Approx. 3 700 000 CZK | 37% |
What does this mean?
The difference in purchase price ranges between 30% and 40% in favor of older apartments. That’s a significant amount—enough to comfortably cover a potential renovation and furnishing of a new home. On the other hand, new builds offer modern standards, energy efficiency, lower maintenance demands, and generally lower long-term costs.
For example, in Brno, the price difference between a new build and an older brick apartment in the same area can exceed 4 million CZK. Yet a full renovation—including new electrical wiring, flooring, bathroom, kitchen, and even interior furnishings—can be completed for roughly half that amount.
Conversely, if you buy a new apartment directly from a developer, it will most likely not include a kitchen unit or built-in wardrobes. As a result, the final purchase price could easily increase by another half a million CZK.
What to keep in mind when choosing?
When comparing prices, it’s important to take many other factors into account:
- Operating costs: New apartments are often significantly more energy-efficient (class A or B), and at least in the first few years, you’ll also save on building maintenance fees.
- Warranties and service: New builds typically come with a multi-year developer warranty.
- Surroundings: Older apartments are often located in well-established neighborhoods with better infrastructure, whereas new developments tend to be in up-and-coming areas.
- Time and effort: Renovating allows you to tailor the apartment to your needs. However, it also requires time, energy, and planning. For some, this is an exciting project—for others, a nightmare.
Nothing is black and white
The choice between a new build and an older apartment depends on each buyer’s priorities. Do you want to move in right away and have everything brand new? Then go for a new build. Are you open to some planning and looking for a more budget-friendly option with potential for value growth? Then an older apartment might be the perfect choice.
Thinking about buying property in the Czech Republic? Whether you’re leaning toward the modern comfort of a new build or the charm and savings of a renovated older apartment, the right choice starts with expert guidance – contact us today to explore the smartest options for your budget and goals.
