Chalets and cottages lose appeal as Czechs shift towards renting holiday properties
Czechs' interest in holiday properties has been declining since the pandemic. According to Sreality.cz, the year-on-year decline in demand for cottages and chalets is up to 8.4%. The drop is mainly in less attractive locations, while prices in desirable areas are still rising. The motivation of buyers is also changing - cottages are often purchased as an investment with the aim of short-term rental. High prices in popular Czech locations are leading to growing interest in properties abroad, especially in seaside destinations. Experts expect further price growth for attractive holiday properties, while the market for ordinary cottages and chalets is rather stagnant.
The coronavirus pandemic has brought a huge interest of Czechs in holiday properties. Cottages, chalets or apartments represented an escape from the big cities and a chance to enjoy themselves close to nature. Since then, however, the interest in buying these properties has been declining and has remained below last year's level. "The drop in demand was mainly in less attractive locations, such as Ústí nad Labem, Vysočina and other areas outside the main tourist centres. There are also examples in the Děčín and Ústí nad Labem regions where the price of a cottage is three times lower than in the peak period. However, this price drop does not apply to traditionally sought-after locations such as Špindlerův mlýn, Pec pod Sněžkou, Klínovec, Lipno, or the Orlické Záhoří," comments Century 21 real estate broker Jan Štěpánek.
The real estate server Sreality.cz also records a year-on-year decrease in interest in the category of "Cottages and chalets" by approximately 7%, compared to the period from January to May last year it is a decrease in interest by 8.4%. "The most significant reduction occurred in the Liberec region, where the average price per square metre fell by 11.5% to CZK 46 800. On the other hand, in the Central Bohemia Region, which is the sovereign leader in terms of available properties among all regions with its May offer of 598 cottages and chalets in very good condition, the average price increased by 3.7% year-on-year to CZK 52,700 per sqm," comments Pavel Chmelík, data analyst at Sreality.cz. The most expensive average price per square metre of a cottage can be found in Prague at CZK 66,000 per sqm, while the cheapest price for a cottage is in the Karlovy Vary region with an average price of CZK 33,200 per sqm.
The reasons why Czechs buy cottages are also changing. They are not only buying holiday properties as a place to spend a quiet weekend, but they are also buying them with the intention of investing. "A relatively strong trend today is the reconstruction of old cottages or their complete demolition and replacement with modern cottages for commercial use and short-term rentals through platforms such as Airbnb," says Štěpánek. The owners spend time in the cottage, but the rental income is more important to them. Therefore, renovated cottages and new buildings attract Czechs more than older log cabins, which require constant care and additional time.
Developers are also responding to the demand for modern holiday properties. For example, the Lakeside Resort Slapy cottage and apartment project by the EVROPA development group is currently being completed in the Vltava region. Recreational properties by the water and mountain resorts near ski slopes are still in great demand in the Czech Republic, so their price will tend to rise. "As there will not be many similar resorts right by the water, I expect prices to increase by up to about 10 percent. Even though cottages and chalets are rather stagnant, prices for holiday homes in exceptional locations will still rise," said Lukáš Bůva from the EVROPA real estate agency.
The high prices of cottages in popular locations are leading buyers and investors to another option - purchasing a holiday property abroad, especially in locations popular for summer holidays by the sea. "In recent years, we have seen great interest among Czechs in properties in Croatia, Spain or Portugal. The price of holiday properties abroad is comparable to the price of cottages in the Czech Republic and the fact that Spain and other foreign countries can be more stable for investment is also reflected in the higher interest in property abroad," adds Tomáš Jelínek, director of Century 21.
