Despite high mortgage rates, the Czech real estate market is experiencing a surge in new apartment sales. In Prague, the number of new apartments sold has steadily increased for six consecutive quarters, with similar trends observed in Brno. This renewed interest marks the most significant buying spree since the real estate boom during the COVID-19 pandemic.
According to recent data from major development groups, 3,500 new apartments were sold in Prague alone in the first half of 2023. This figure is just 500 units shy of the total sales for the previous year. The second quarter was solid, with 1,900 new apartments sold, making it the fourth-highest quarterly sales since 2011.
The resurgence in demand has prompted developers to test the market with record-high prices. The average asking price for new apartments in Prague has risen 3.4% year-on-year, reaching 156,780 crowns per square meter. In practical terms, a 70-square-meter apartment is now being advertised for nearly 11 million crowns.
However, the selling prices are typically about 10,000 crowns per square meter lower than the asking prices. These prices are gradually approaching the peak levels seen at the end of 2022. Experts predict that apartment prices are unlikely to decrease further and may instead see accelerated growth shortly.
The trend is not limited to Prague. Brno, the second-largest city in the Czech Republic, is also experiencing a significant uptick in new apartment sales. The second quarter saw a threefold increase in sales compared to the previous year, marking the strongest quarter since the COVID-19 boom.