The average price of older flats and family houses in the Czech Republic fell in the third quarter of this year. An older apartment could be bought in the summer for an average of CZK 83,958 per square metre, which was roughly CZK 3,000 less quarter-on-quarter. The price of a square metre for detached houses fell by CZK 2,500 to an average of CZK 51,000. Monthly rents in apartments stagnated at CZK 290 per square metre. This is based on the latest data from the Quarterly Real Estate Price Monitor of the European Housing Services (EHS) group, which includes, for example, the digital real estate service Bezrealitky or the real estate agency Maxima.
“The main wave of those interested in owning their own home, who were able to finance it with their own funds or with the help of a mortgage, has exhausted itself and owners now have to accept a further cooling of demand. However, this is positive news for buyers. There is a lot of room for further negotiations, even in Prague, which until now has benefited from its privileged position,” said Hendrik Meyer, head of EHS Group and Bezrealitky.
In addition, according to Meyer, there may be properties on the market that can go down in price. These include so-called “lagers,” whose owners have resigned themselves to not getting as much for the property as they had imagined. There are also properties that won’t retain their owners because of this year’s 2018 wave of cheap mortgage refinancing.
According to EHS, Prague apartment prices have hit their ceiling and rose only slightly quarter-on-quarter. The average price per square meter in an older Prague apartment is CZK 117,500. Prices of detached houses in the capital exceeded CZK 100,000 per square metre for the first time on average. In the summer, many owners who had been trying to sell their houses for a long time started selling them. These are often expensive new-builds or older houses with specific layouts or aesthetics, which are difficult to find new owners.
“Prague will continue to draw on its position in times of economic turmoil, so I wouldn’t bet on a downturn. On the other hand, even stagnation in itself is very good news and a boost that can help in negotiations for anyone looking for their own home in the capital,” Meyer added.
In the Central Bohemian Region, the price per square metre in an apartment fell by an average of CZK 6,000 to CZK 74,000 quarter-on-quarter. In houses, a square metre became cheaper by CZK 3,500 to an average of CZK 61,500.
Flats in the South Moravian Region have been stagnant for three quarters of a year at around CZK 81,000 per square metre and in the summer prices of family houses also fell by CZK 3,500 to CZK 47,500 per square metre. According to EHS, houses in the traditionally house-owning region are now at a similar level to two years ago. In Brno, similar to Prague, the supply of flats has slowed down. Many owners have stopped offering their property rather than accept lower prices. According to Meyer, it will be more difficult to find a quality apartment in Brno than in recent months, when the supply was above average.
Rents increased most quarter-on-quarter in the Liberec region, where a square metre was rented for CZK 211 in the third quarter, CZK 14 more than in the spring. The most significant drop of CZK 11 per square metre was recorded in the Olomouc and Moravian-Silesian regions. The highest rents are traditionally in Prague, where they stood at CZK 347 per square metre, up by CZK 8 quarter-on-quarter.
Source: EHS and CTK
