According to an analysis by the real estate portal Sreality.cz, apartment prices have dropped by more than 10% YoY in 30 cities and urban areas across the Czech Republic, with some places seeing a drop of over 20%. The study looked at the advertised prices of apartments ranging from 40 to 60 square meters in excellent condition and personal ownership, regardless of whether panel or brick.
The most significant decrease in advertised prices in the YoY comparison occurred in Pardubice, where a square meter is sold for CZK 61,766 ($2,835), over 20% cheaper than in the same period last year. In Žďár nad Sázavou, apartments are also over 20% more affordable, with a square meter costing CZK 65,000. Sreality.cz recorded a significant drop in offered prices of over 19% in Kolin.
However, there are significant regional differences in the evolution of prices. “In price development, there are significant regional differences,” said Petr Dufek, an analyst at Creditas Banka. According to Eurostat, apartment prices started to drop at the end of last year. They fell by about 2% in the last quarter compared to the previous quarter. “It was the first decline in nine years,” noted Dufek. However, apartments have become 130% more expensive in the last ten years, meaning prices have remained high.
This year, however, the decline has significantly accelerated. “One of the biggest YoY declines in offered prices is for Brno panel apartments, which is 17%,” said Impera Styl’s CEO, František Šudřich. The drop of 17% is also evident in the center of Ostrava, Trutnov, and Český Krumlov. Apartments in other cities, such as Přerov, Plzeň, Ústí nad Labem, Hodonín, Pelhřimov, Teplice, Tábor, Šumperk, and Most, have also dropped in price by 10 to 15%.
Other cities with a decline in apartment prices include Hradec Králové, Frýdek-Místek, Chrudim, Rakovník, České Budějovice, Prague 1 and 9, Vsetín, Karviná, Kladno, Nový Jičín, Liberec, and Česká Lípa. On the other hand, some places have seen price increases; for example, Prachatice and Bruntál.