The surge in demand for purchasing apartments in Czechia has significantly influenced property prices. This year, prices have risen more sharply than experts had anticipated. The remarkable increase is evident not only in real estate agency advertisements but also in actual sale prices. The average price across Czechia in the year’s first quarter reached its highest point in history.
The average price calculated from over six thousand transactions amounted to 99,300 CZK per square meter. This means a 70-square-meter apartment would cost nearly seven million CZK. Apartments have increased in price by four per cent in the first three months of this year.
Petr Hána, a real estate market expert from Deloitte’s consulting company, stated, “The first quarter of this year was marked by continued growth. After four quarters of declining apartment prices in Czechia, we have seen a second consecutive price rise.”
The company bases its regular surveys on data from the real estate register. Although their data is available with a delay, it includes potential discounts that sellers provide during transactions. Hána added, “The current situation in the real estate market confirms that the trend of decline, which started more than a year ago due to high inflation, rising energy costs, increasing interest rates, and construction costs, is definitely over.”
Prague remains the most expensive regional city, where a 70-square-meter apartment costs an average of 8.7 million CZK. Conversely, the cheapest option is Ústí nad Labem, where a buyer would pay almost 6.5 million CZK less. According to Hána, prices are expected to continue rising throughout the year. “Many potential buyers waiting for better conditions have decided to purchase the property. With ongoing reductions in interest rates, I expect the real estate market to continue to experience higher demand,” he stated.
The development of offer prices supports this expectation. Data for the second quarter are already available, and figures from the largest advertising server, Sreality, show a nationwide increase of about seven per cent compared to the end of last year.