Market prices of flats, family houses and land in the Czech Republic continued to rise year on year in the fourth quarter. The price increase was the highest for land, at 23.2 percent. Housing prices for the year rose by 18.8 percent and family house prices by 17.9 percent. This follows from the HB Index provided by Hypoteční banka today. According to Hypoteční banka, the increase in prices is caused by both the high share of investment purchases and the fear of inflation. The fear of tightening the conditions of mortgage loans by the central bank is also contributing to the increase in prices.
According to Jiří Feix, Chairman of the Board of Directors of Hypoteční banka and ČSOB Stavební spořitelna, the last quarter of last year did not bring a significant slowdown in price growth this time either. “The growth rate slowed down slightly in single-family houses, which we attribute to rising building materials prices.
Since 2010, flats in the Czech Republic have risen in price by 103 percent, and compared to the third quarter of last year, the average growth in flat prices was five percent, the same as in the previous quarter. “The largest increase in prices was recorded in the Ústí nad Labem region, in Prague flats grew by 4.4 percent, most in the 2 + 1 and 2 + kk categories. On the other hand, the pressure from shoppers is increasing for a higher standard of equipment and its energy efficiency,” said Feix.
Family house prices rose by 4.6 percent quarter on quarter. Since 2010, the overall increase has been 81.9 percent. “There is still interest in houses in good technical condition, on the contrary, due to rising prices of building materials, there is less interest in houses intended for reconstruction and new construction of houses. in the Central Bohemian and South Moravian regions, ie within driving distance of the largest Czech cities,” said Feix.
According to Feix, the greatest interest in development projects is in terraced construction. He noted that a number of developers have begun to include inflation clauses in their purchase agreements, which protect them against rising construction costs.
According to the index, the rise in land prices was strongly influenced by speculative investments. According to Feix, due to the excess demand, land is also being sold more without an approved zoning plan, which investors are buying for speculation. Land prices have risen in price by 128.2 percent since 2010.
HB Index monitors the prices of apartments, houses and land. It is based on realistic estimates of real estate market prices purchased by Hypoteční banka clients through a mortgage loan.
Source: Hypoteční banka and CTK
