Homeownership Becomes Increasingly Unattainable in the Czech Republic

In the past decade, the average price of a newly-built apartment in the Czech Republic has skyrocketed, making it increasingly difficult for many citizens to afford homeownership. According to a recent analysis by the Trikaya development company, the average price of a new apartment in Brno has increased by 192% since 2013, with the average cost per square meter rising from CZK 43,200 to CZK 126,100. Similarly, in Prague, the average price of a new apartment rose by 175% over the same period.

One of the main reasons for the rise in apartment prices is a shortage in supply. Fewer new apartments have been built than are needed to meet the demand, leading to a long-term situation where demand has outpaced supply. As a result, new flats are becoming increasingly unaffordable for many people.

The situation has led to calls for private companies and municipalities to work together to find new forms of cooperation that will help increase affordable housing availability. The Trikaya development company’s executive director, Dalibor Lamka, has called for inspiration from other European cities to find ways to address the problem of unaffordable housing.

The rise in apartment prices has been exacerbated by the fact that many Czechs have turned to real estate to invest their money. Low mortgage rates have made investing in real estate an attractive option for many, and mortgage loans have increased significantly in recent years.

While the situation is difficult for many citizens, it is incredibly challenging for those living in Brno and Prague. Despite a slight slowdown in apartment prices in Brno during the second half of 2021, prices in Prague continued to rise, with the average cost per square meter increasing from CZK 53,700 in 2013 to CZK 147,800 in 2020.

In the face of the current situation, it is essential to find new ways to increase the availability of affordable housing. By working together, private companies and municipalities can help to ensure that all citizens have access to the housing they need, regardless of income or social status.