Czechs are increasingly purchasing smaller plots of land due to rising prices. While land prices have slightly decreased, they have not fallen to the levels seen two years ago. In the most desirable areas, prices continue to rise.
According to Jana Panochová, a real estate agency Lexxus Norton consultant, the average price per square meter in Prague is around 20,000 CZK. While this figure is still rising, the land cost is decreasing due to a higher demand for smaller plots.
Real estate agent Iztok Toplak of RE/MAX G8 Reality added that while prices for larger plots of land are decreasing, the price per square meter is rising due to greater demand for smaller parcels.
However, prices vary significantly depending on location. Toplak notes that land prices are decreasing in rural areas but are still much higher than five years ago.
Despite a decrease in the number of sold plots, which dropped by over 30% in 2021 and 40% in 2022, land prices are experiencing more of a correction than a significant drop.
Jan Vejmělek, an analyst at Komerční banka, explains that land prices tend to decrease during periods of significant recession, such as the global recession in 2009. The current economic slowdown is not significant enough to lead to a substantial drop in land prices.
Vladimír Brůna of B&K Nemovitostní Investice notes that while land prices may decrease in some areas, they will likely increase over the next five to ten years due to decreased available land.
While the number of available plots of land is increasing, buyers should carefully review local and regional zoning plans to determine what they can and cannot build on their purchased land.