Czech historic property market sees falling prices, municipalities lead purchases

The Czech Republic’s historic property market is experiencing a notable shift. Prices for renovated castles are dropping, while properties in need of restoration, yet in good condition, are gaining traction among buyers. According to Luxent - Exclusive Properties, municipalities are becoming prominent players, alongside investors and private buyers seeking exclusive residences.

Lenka Munter, a historic property specialist at Luxent, noted, “Renovated properties in our portfolio are seeing a 10% price drop, bringing many near cost price. This trend is surprising, as purchasing a fully renovated property can save buyers significant time and resources.” On the other hand, properties requiring urgent care are seeing discounts of up to 50%, but this isn’t driven by market trends; rather, it reflects the high cost of restoration.

For example, the fully restored Třebotov Castle near Prague, featuring a Renaissance design and landscaped garden, is priced at CZK 74.9 million, while the expansive Mirošov Castle complex, with Baroque architecture and several outbuildings, is listed at CZK 95 million. Munter also highlights increasing interest in unrenovated properties, as buyers prefer the flexibility to restore a property to their own vision.

Municipalities are leading the charge, often purchasing properties for multifunctional use, including cultural events, community centers, and rentable commercial spaces, which generate revenue for local governments. Meanwhile, private buyers are drawn to the historic charm, either for luxury living or as personal restoration projects.

The Czech market is unique, with an abundance of Baroque monuments, yet there remains a shortage of smaller, renovated estates at accessible prices. However, buyers are increasingly recognizing the potential of historic properties, blending modern luxury with the preservation of historical authenticity.