Apartment Prices Dropped by a Fifth, as shown by Sreality.cz

The real estate market has seen a significant shift in 2023, with apartment offering prices experiencing a decrease of up to 20 percent. While the decline in Prague has been a few percentage points, in other locations, apartments of 40 to 60 square meters have reduced by a fifth compared to the previous year. This trend has been highlighted by the analysis from Sreality.cz, which reached new buildings and older apartments, excluding units before reconstruction.

The highest decrease in apartment prices was documented in Bruntál district, according to the analysis for the year 2023. There, prices dropped by more than 21 percent, the cost per square meter now being 29,018 Czech koruna. A decrease of 19 percent to 53,395 Czech koruna per meter was registered in the Znojmo district, and in Česká Lípa, prices fell by 18 percent to 41,000 Czech koruna per meter.

Prague’s capital recorded a drop in prices between two to eight percent, as per Sreality.cz. The average advertised price per square meter is 188,000 Czech koruna in Prague 1 and 112.5 thousand Czech koruna in Prague 4.

As the year draws to a close, the completion of further stages of construction in Prague’s Karlín is coming to an end, adding hundreds of apartments to the locale. “In Prague, we can soon expect prices to start rising, which is also suggested by comparisons with Western Europe. Prague still has room to grow in terms of price. The demand is postponed,” says Martin Machala, who worked for the Heimstaden rental housing fund and now leads the mortgage start-up Ownest.

Brno, the second most significant real estate market after Prague, shows a seven percent decrease to an average of 96,099 Czech koruna per square meter in the analysis. The Real Estate Insider analytical portal also confirms a drop in offering prices over the past three years.