Banks and building societies in the Czech Republic are estimated to have provided housing loans totaling CZK 305 billion in 2024, an increase of CZK 135 billion compared to the previous year. This growth includes CZK 256 billion in mortgages—nearly double the previous year’s CZK 137 billion—and CZK 49 billion from building savings loans, up by CZK 16 billion. These figures were shared by Martin Vašek, CEO of Hypoteční banka and ČSOB Stavební spořitelna, during a press conference. “The housing market experienced a robust recovery last year. With the Czech economy rebounding, real wages increasing, and mortgage rates declining, we saw strong buyer interest and renewed growth in house prices,” Vašek noted. Looking ahead, the total volume of housing loans could reach CZK 349 billion in 2025, provided economic conditions remain stable, according to Miroslav Zetek, Vice-Chairman of the Board at ČSOB Hypoteční banka. “Mortgage rates are influenced by global economic trends, particularly in major economies like the U.S. and the eurozone. However, we expect a gradual decline in client mortgage rates,” Zetek added. A notable shift has occurred in mortgage fixations, with 95% of clients now opting for shorter terms of three years or less, compared to the previous preference for five years or longer. The Czech real estate market, mirroring European trends, is back on an upward trajectory. House and apartment prices have approached record levels set in 2022, while demand for overseas real estate has grown among Czech buyers. Preliminary data indicates continued price growth in 2025, with real estate prices potentially increasing by 5% or more. In 2024, ČSOB Hypoteční banka reported that a third of its new mortgages were used to finance low-energy houses and apartments, a trend expected to rise further as households and businesses focus on energy savings. Similarly, nearly 40% of building savings loans were directed toward economical housing, with most borrowers coming from smaller towns and villages, according to Ladislav Neuhäuser, Vice-Chairman of the Board at ČSOB Stavební spořitelna. Last year, the ČSOB Group provided CZK 63.2 billion in mortgage loans and CZK 11.2 billion in building savings loans. Over half of the mortgages were taken by young clients under 36 years old. The group, part of the KBC International Banking and Insurance Group, operates in Belgium and Central and Eastern Europe, positioning itself as a key player in the region’s housing finance sector. With the continued economic recovery, rising real estate demand, and growing focus on sustainable housing, the Czech housing market is set to maintain its upward momentum in 2025. Source: ČSOB and CTK