Flats have become dizzyingly expensive again. In Brno, they are already at CZK 100,000 per square meter

Flats continue to get more expensive, and in some places, enormously. In the last quarter, prices in Ústí nad Labem increased by 61 percent yearly, to an average of more than CZK 37,300 per square meter. In Prague, the average price per square meter has risen by 16%, reaching CZK 120,800.

At brokers’ offices in Brno, they recorded a year-on-year increase of 30 percent, while in Olomouc and Plzeň, it was only slightly less.

Prices in Prague are at an all-time high, with records being broken not only in the historic center. For example, a 44 sqm brick 2+kk apartment in Prague’s Žižkov district already costs CZK 7.4 million, a 47 sqm apartment in Holešovice CZK 6.5 million, and a 34 sqm prefabricated 1+1 apartment in Břevnov over CZK 5 million. In Plzeň, a new 2+kk, 61 m apartment with a balcony in a project under construction in Vojanova Street costs CZK 5.2 million.

A unit just five meters larger in the same building is almost half the price. In contrast, a nearby 2+1, 68 m apartment in a prefabricated building costs 3.5 million – but it is before reconstruction. Ostrava is a bit better off. With furnishings, a new 2+kk unit, 54 sqm, costs CZK 4.4 million in Preslova Street.

Brno, however, is already close to the capital in terms of price. For example, a 2+kk, 76 m2, on Palackého třída has a price tag of CZK 8.5 million and a 2+kk, 65 m2, on Mojmírovo náměstí almost five million. Last year, 1,192 new flats were sold in Brno, a quarter increase compared to 2020. In total, buyers spent over CZK 6.5 billion on new apartments in the city.

Two-room flats are the most popular layout in the long term. However, in the Moravian capital, the interest in studio apartments increased by a quarter year-on-year. New ones accounted for 40% of total sales.

Experts agree that the real estate market will cool down, but they do not expect a drop in prices, only a slowdown in growth. Although mortgage interest rates are rising significantly, investors are buying many properties, including foreign ones.