After nearly two years of decline, Czechs are rekindling their interest in cottages and cabins, driving prices up once more. According to September data, prices have increased in 13 out of 14 regions. However, this doesn’t signal a return to the widespread cottage ownership seen during socialism or the COVID-19 pandemic. Instead, Czechs are finding new ways to utilize these recreational properties – increasingly opting to rent them out.
Real estate agents confirm the renewed attraction of cottages and cabins to buyers. Jan Štěpánek, owner of Taurum Reality, notes that cabins in their inventory are selling without significant delays. This growing interest is reflected in property prices, with data from the largest advertising website, Sreality, showing that cottages for sale have increased in price by an average of 4.5 percent year-on-year across the Czech Republic.
Expensive apartments and houses partly fuel the appeal of recreational properties. In Prague and the Central Bohemian Region, it’s not uncommon for every second or third cottage to be sold as a permanent residence. People renovate these properties, finding it more cost-effective than purchasing a family home. Investors are particularly interested in cottages and cabins in attractive locations near swimming areas, campsites, or ski resorts, which can be rented out through services like Airbnb for increased profitability.
The gradual reduction in loan costs is also contributing to the increased interest in real estate. Although banks are lowering interest rates slowly, it may still attract investors to make purchases. The days of significant discounts seem to be over, with some properties in desirable locations even being sold at auction for prices higher than the initial offer.
While discounts can still be obtained for lower-quality cottages and cabins not situated on their own land, property owners are generally less willing to negotiate than before. Discounts now tend to be in the single-digit percentages.