As someone who has been keeping an eye on the real estate market in the Czech Republic, I wasn’t as surprised as some to see a significant drop in apartment prices last year.
This trend was particularly noticeable in older buildings, while the number of sales only decreased slightly for new constructions. However, the latest data from Valuo.cz, which analyses sales prices based on the land registry and advertisements, revealed that even high-priced areas around Prague’s metro stations are also experiencing price reductions, which to me wasn’t something I necessarily expected.
When looking at properties around metro stations, Valuo compares renovated apartments in personal ownership with an area of eighty square meters located within a radius of one kilometre from the station, except for Letňany, where the radius is extended to 1.5 kilometres given the relative lower amount of properties close to the metro.
Based on Valuo’s current analysis, it appears apartments near metro stations have become cheaper for the first time in the last six years. The average price has dropped for almost all stations compared to last year. The most significant decreases were seen at Bořislavka on line A (by 24%) and Národní trýda on line B (by 20%). Valuo also recorded a year-on-year drop in prices for the other twelve stations, ranging from 17 to 19%.
Out of the 61 stops on the Prague metro, only six of them saw an increase in prices compared to last year. Křižíkova, Anděl, Smíchovské nádraží, Radlická, Nádraží Holešovice, and Vltavská stations went up in price, though only by a few percentage points, and the Želivského stop maintained the same values as in 2022.
According to Valuo founder Radek Šitera, “it was clear from last year’s data that you couldn’t buy an 80-square-meter apartment after reconstruction near the subway for less than seven million crowns. This year, however, the tables turned and prices fell below this threshold in three places. The cheapest apartments can now be purchased near the Černý Most, Stodůlky, and Opatov stations”.
It’s interesting to note that the most expensive route of the Prague metro is still line A, where an eighty-square-meter apartment after reconstruction costs an average of 9.9 million crowns. The prices are even higher around the Staroměstská and Malostranská stations, where an apartment with the same specifications in the heart of the historical centre of the metropolis costs at least 14 million.
Between 2017 and 2022, apartment prices in the vicinity of Prague metro stations rose by more than half on average. However, last year, 51 stations exceeded the price threshold of 100,000 crowns per square meter. This year, that number has dropped to 36 stops.
As someone who has been following the real estate market in the Czech Republic, it’s exciting to see these changes. Valuo’s data is insightful and provides a more personal touch, giving potential buyers and investors a better understanding of the market trends. It’s definitely worth keeping an eye on the market developments in the coming months.
To review all the Valuo data, please see here.