Apartment Prices in Czech Republic Likely to Stabilize, While Family Home Prices See a Slight Increase

In the third quarter of this year, apartment prices in the Czech Republic declined by more than six percent year-on-year. However, the likelihood of further price drops is less probable. In contrast, family homes have seen a slight price increase, with an average rise of 1.4 percent, according to an analysis by ČSOB Group.

“We expect apartment prices to stabilize, and perhaps we are nearing a turning point. Compared to the previous quarter, there has been an increased interest in apartment units of types 3+1 and 3+kk, whose prices have fallen the slowest,” stated Martin Vašek, CEO of Hypoteční banka.

Interestingly, the prices of tiny apartments with a 1+1 layout have dropped the most from all apartment categories, which is atypical.

Conditions for people waiting for a more advantageous opportunity to buy an apartment have most improved in the Pardubice, Moravian-Silesian, and Ústí nad Labem regions. These regions have seen the most significant quarterly price decrease.

Incentives from developers have boosted sales in Prague. The fall in prices has stopped, and the offering price of new buildings has hardly changed compared to the previous period. The price per square meter of a new apartment is around 150 thousand korunas, said Kateřina Poláková from consulting company Knight Frank.

In conclusion, the Czech housing market seems to be stabilizing, with the likelihood of further price drops decreasing. However, differences in trends between apartment and family home prices and regional variations are notable.