Apartment prices in the Czech Republic rise by 2.3% in Q3 2024, continuing upward trend

Apartment prices in the Czech Republic increased by 2.3% quarter-on-quarter in the third quarter of 2024, reaching an average of CZK 104,100 per square meter. This marks the fourth consecutive quarter of rising prices, according to data from the Real Index by Deloitte, as reported by the Czech News Agency. The majority of regions experienced price hikes, with the most significant increases recorded in the Zlín, Pilsen, and Ústí regions. In contrast, the South Bohemian Region saw a notable decline in prices.

A total of nearly 4,000 apartments were sold across the country during the third quarter, approximately 3,000 fewer than in the previous quarter. According to Petr Hána, director of the real estate and construction department at Deloitte, the price growth reflects continued market recovery driven by falling interest rates, reduced inflation, and lower energy costs. “The trend of rising prices, which began with improved economic conditions, continues to hold steady,” Hána stated.

Regionally, the Zlín Region saw the highest year-on-year price growth at 14.6%, followed by an 11% increase in Pilsen and Ústí regions. On the other hand, the South Bohemian Region experienced a significant price decline of 14.4%, with the Liberec Region also recording a minor drop of 1.5%.

The capital city of Prague and the South Moravian Region remain the most expensive areas for property purchases. Apartment prices in Brno rose by 6.8%, reaching CZK 111,600 per square meter. In Prague, prices climbed by 4.5% to an average of CZK 137,900 per square meter, although the rate of increase has slowed compared to the previous quarter’s 5.7% growth.

Within Prague, the highest price surge was recorded in Prague 6, where prices jumped by 25% to CZK 159,700 per square meter. Prague 1, the city’s historical center, also saw a significant increase of 17.4%, making it the most expensive district with an average cost of CZK 202,900 per square meter. Meanwhile, prices in Prague 9 rose by 7.4%, driven by ongoing new development projects. However, declines were noted in Prague 8 and Prague 2, where prices fell by nearly 10% and 2%, respectively.

Hána emphasized that the sluggish construction of new apartments remains a critical issue in the Czech real estate market, contributing to rising prices and housing shortages. “Thousands fewer apartments are being built each year than the market demands, and unfortunately, there is no sign of improvement in the near future,” he warned.

In terms of sales distribution, the majority of transactions in the third quarter were for new developments, with 1,728 units sold, including 1,012 first-time sales. Additionally, 1,011 transactions were recorded for brick buildings, while 1,209 prefabricated apartments were sold. Despite the overall slowdown in transactions, demand for modern, well-located apartments remains high.

Source: Deloitte and CTK