Czech real estate demand and prices set to rise in 2025
The demand for Czech real estate is expected to grow in 2025, driving up property prices. Experts cite an improving economic outlook and gradually declining mortgage rates as key factors behind this trend. Older flats are likely to see price increases of about 1%, reflecting ongoing low levels of new housing construction and limited market supply. Rents are also projected to rise at a similar rate, while investment in commercial real estate is expected to rebound significantly, according to real estate specialists.
“We anticipate continued moderate appreciation in property values next year due to falling mortgage rates and economic recovery. Housing has become more expensive, and family homes are increasingly out of reach for many, even with a mortgage,” said Michal Macek, owner of a real estate group.
Lumír Kunz, managing director of a real estate platform, predicts a similar market dynamic for older properties in 2025. “With a shortage of new housing projects, buyers will likely turn to older properties in good condition. Lower mortgage rates, combined with limited supply, will allow sellers to raise prices further,” he explained.
One consultancy estimates that prices for both owner-occupied and rental housing could rise by 5-10% next year. Lower homeownership affordability is expected to fuel demand for rental housing, while investment in logistics and rental-focused apartments will remain attractive. Multifunctional centers, hotels, and offices are also gaining interest as the office market recovers, with more people returning to workplaces post-pandemic.
The commercial real estate sector is poised for growth, with investment activity likely to surpass CZK 50 billion (EUR 2 billion) in 2025, a significant increase from this year’s CZK 38 billion (EUR 1.5 billion). The first quarter of 2025 is expected to see strong activity, driven by several major transactions nearing completion. While domestic entities will lead investments, foreign investor interest is anticipated to rebound as well.
“Industrial production and the automotive sector face challenges, but we foresee a slight recovery next year. Multifunctional centers and hotels are attracting growing interest from investors,” one consultancy noted.
The overall market trajectory reflects cautious optimism, with increasing demand and rising prices across residential, rental, and commercial real estate. The combination of improving economic conditions and reduced borrowing costs is set to shape a dynamic year for the Czech real estate sector.
Source: CTK
