Czech Housing Market Rebounds: New Apartment Sales and Prices on the Rise

The Czech apartment market is experiencing a significant rebound, with sales of both new and older apartments surging across major cities.

In Prague, developers sold a staggering 2.5 times more new apartments in the first three months of 2024 compared to the same period last year. This surge follows a historically slow period for sales in 2022 and early 2023, attributed to high mortgage rates and economic uncertainty.

Despite the recent increase, 2023 still marked the second-worst year for new apartment sales in Prague’s history. However, prices have shown signs of stabilization, with the average price per square meter seeing only a slight increase of 1.2% compared to the end of 2023, Hospodářské noviny reports.

Brno’s apartment market also saw a significant boost, exceeding the expectations of many experts.

Sales doubled compared to the previous year’s quarterly average, driven by mortgage rate reductions and pent-up demand. While prices haven’t reached the heights of 2020-2021, analysts predict a gradual upward trend in the coming months.

According to the analysis of the company FérMakléři.cz, which is available to the editors of FAEI.cz, an older apartment in Prague can currently be bought for an average of CZK 125,400 per m2.

Roughly three months ago, prices were around CZK 121,700 per square meter, and half a year ago they were still around CZK 2,000 per square meter lower.

Older apartments in Prague rose in price by an average of six percent, in Brno by seven percent and in Ostrava by even 13 percent. The only anomaly among the eight monitored cities is Ústí nad Labem, where prices decreased by four percent year-on-year.

The analysis also revealed a price increase for older apartments across various Czech cities, ranging from 4% to 13%. This trend suggests a potential recovery in the broader housing market.

 

 

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