In the Czech Republic, sales prices of older flats rose by 28.2 percent year-on-year to CZK 85,006 per square meter. The pace of growth increased, with flats becoming 22.5 percent more expensive at the end of March.
Prague was the most expensive (CZK 110,711 per sqm). The cheapest was the Ústí nad Labem region (CZK 27,980 per sqm). Rents fell by an average of two percent per square meter per month.
After Prague, the most expensive flats were in the South Moravian Region (CZK 77,578 per square meter) and the Central Bohemian Region (CZK 64,408). The cheapest region, Ústí nad Labem, was followed by the Moravian-Silesian Region (CZK 36,395) and the Karlovy Vary Region (CZK 41,072).
Prices of older flats rose year-on-year in all regions. In the Liberec Region, prices increased by more than half, followed by the Karlovy Vary Region with a 43 percent increase, and the Olomouc Region, where prices increased by less than two-fifths.
The least expensive flats were in Vysočina (by 11 percent), the Pilsen Region (by 13 percent), and Prague (by 17 percent).
“The prices of older houses and flats continue to rise and bring with them new price records. Inflation and the materials crisis are fuelling growth. Still, the data suggest that it could slow down at least a little in the coming months, ” said Bezrealitka CEO Hendrik Meyer.
According to him, the increase in prices practically all over the Czech Republic has one neglected positive. In a number of localities, older properties that have been lying fallow for years are being sold and renovated. These are then put up for sale or rent.
“The price increases will probably also affect rental housing in the coming months. More than a year of decline has stopped and prices are now starting to rise again very cautiously, ” Meyer noted.
“After a one-year break, university students are likely to become interested in rental apartments again, and we can expect a tepid return of tourism to Prague and, with it, growing attempts to resume short-term rentals,” Meyer added.