The prices of apartments in Prague – compared to last year – increased by 10.4% to 2,100 euros per square metre.
Prague remains the most expensive city in the country: 2,750 euros per square metre. The cheapest regional capital is Ústí nad Labem, where the cost per square metre is less than 550 euros.
A total of 27,000 apartments were sold in the Czech Republic in 2017.
Analysts say the growth in real estate prices will slow down, but the trend will not reverse. Only an unexpected economic or political crisis could force a drop in apartment prices, according to analysts.
Compared to the average for 2014, the average offer price has already risen by 35.5 percent. Prices have grown in most Prague districts, with the highest increase of 4.5 percent in Prague 6.
A reason for the rise in real estate prices is the population growth in Prague. According to the demographic projections, the population of Prague is projected to grow by an additional 93,000 people by 2030 and 82,400 new apartments will be required. To meet this demand it was necessary to complete the construction of 5,500 apartments last year.