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Apartment Prices In Czechia began to decrease

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Condos in new buildings in Prague remain the most popular type of housing

What has happened? According to Deloitte, a financial consulting company, apartment prices experienced a 1.2% decline in the first quarter of this year compared to the previous quarter. 

The average price per square meter was CZK 92,200 (€3,860).

The reasons. This decrease can be attributed to reduced demand caused by inflation, increasing mortgage rates, and rising real estate costs due to high energy expenses and ongoing construction work.

Nevertheless, the cost of apartments in the Czech Republic today is 70% higher than before the pandemic crisis.

Dynamics of prices in the regions. The most significant average drop in apartment prices was observed in the city of Liberec, where prices decreased by 15.6% compared to the last quarter of 2022. Ostrava experienced a 12.6% price reduction, while Pardubice saw a decline of 11.2%/

 Usti nad Labem witnessed an average price increase of 4.4%, and Zlin observed a rise of nearly 5%.

In Prague, overall prices remained relatively stable, with a slight increase of 0.2%. 

Apartments in Prague 8 experienced a 5.5% increase in prices, followed by a 3.8% increase in Prague 3, and a 2.8% increase in Prague 9.

On the other hand, prices in the city center have dropped significantly: (-18%) in Prague 1, and (-12%) in Prague 2.

Sales. According to Deloitte, the number of apartment sales in the Czech Republic decreased by 9.5% compared to the previous year, falling from 6,046 to 5,471 units.

However, the decline in the number of apartments sold was less noticeable in Prague: approximately 64% of all apartments sold were in Prague. 

More than half of the apartments sold were located in new buildings.

Please read as well: About 10% of all apartments in the Czech Republic are being rented out

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Source: Prague Monitor

Photo by  William Zhang on Unsplash

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