Buying a new-build flat in Prague: what buyers need to know

The brochure shows a sunny terrace, a tidy kitchen and a view. What you're actually buying, on the day you sign, may be a hole in the ground with a crane next to it. Buying a new-build in Prague is perfectly normal and a good route to a modern, efficient home. It just isn't the same as buying a flat you can walk around.

How it differs from a resale

With a resale you see the flat, the building and the neighbours. With a new-build you often rely on drawings, a show flat and the developer's reputation. You pay in stages tied to construction progress, and the keys may be many months away. In return you get new systems, modern insulation, a warranty and often a say in layout and finishes.

Not every new-build is unfinished. Some flats sit in completed projects and can be moved into soon. Ask early which kind you're looking at.

The steps

Finding projects

Browse the directory of new-build homes on Novostavby.com (in Czech) for the national picture, see projects plotted by location on the Novostavby.com development map (in Czech), and look at the property developers active in Prague (in Czech) to see who is building. They're listings, not endorsements, so research each developer and project yourself.

The contract questions

Go through these with a lawyer before you sign:

• What exactly is in the specification (floor area, finishes, appliances)?
• What is the planned completion date, and what happens if it slips?
• How are payments staged, and what protects your money if the developer fails?
• Does the money go into a lawyer's or notary's escrow account, or straight to the developer?
• What penalties apply if either side walks away?
• What are the warranty terms?

The Civil Code gives buyers a statutory warranty for defects, and the period differs between buildings and other goods, so have a lawyer confirm what your contract says.

Money matters

New-builds often ask for a bigger first payment than people expect, because the developer wants money early. A mortgage may not pay out until later, so you may need cash in the gap. Ask your bank how the loan is released and whether that fits the payment schedule. Our guide to how much deposit you need explains your share.

There is no property acquisition tax on the purchase. Do budget for the cadastre fee and for the owners' association charges that start when you take over; the first-flat guide lists the standard costs.

Reading the developer's track record

A new-build is partly a bet on the builder. Visit a completed building, talk to residents and look at the common areas a few years after handover. Check the commercial register for the company that signs the contract, which is often a single-purpose company set up for the project. Ask who stands behind it, how the project is financed and what happens to your money if there is a delay. A developer with a good record will be glad to show you finished buildings. One who dodges the subject has told you something.

Specification, extras and slippage

Many new-builds let you pick finishes such as floors, tiles and kitchen layout, with deadlines and price lists. Get the specification in writing, with brands or standards, and make sure anything promised in the showroom is in the contract. Parking spaces, cellars and storage units are often sold separately, so check they're included and recorded.

Schedules slip. The contract should set a planned completion date and spell out what happens if it's missed: a penalty, a right to withdraw, or nothing. If you're renting meanwhile, don't give notice until you have a realistic completion date, because tenancy notice runs from the first day of the month after delivery and leaves less room than you'd think.

At handover

This is the moment you hold the cards. Don't sign the handover protocol until you've checked the flat against the specification. Bring a friend, a torch and a list. Open windows, run taps, flush toilets, test lights and heating, measure floors if the contract specifies an area. List every defect in the protocol, with a repair deadline, and photograph it all.

Then take meter readings, open utility accounts in your name and collect the manuals, warranty papers and the energy performance certificate. Join the owners' association, read the first minutes and ask about the repair fund. Keep a single folder for the contract, the protocol, the specification and every email about defects, and report problems in writing within the warranty period. If you're weighing a new-build against an older flat, see the first-time buyer districts page.

Frequently asked questions

Can I resell a new-build flat quickly?

Once you own it, yes. Ownership passes on registration in the cadastre. Check your contract for restrictions before completion.

What if the developer is late?

The contract should set out the consequences. Have a lawyer read the clauses on delay and penalties.

Is a new-build better than a resale?

It depends on the price, the location and your tolerance for waiting. New-builds offer modern systems and warranties, resales offer certainty.

Do foreigners need permission to buy?

No, foreigners can buy real estate in Czechia. A mortgage depends on the bank.

This is a general explainer, not legal or tax advice.