In the first quarter, market prices of flats, family houses and land in the Czech Republic rose the most in the last ten years. Most in land, by 5.2 percentage points. Land also rose the most in year-on-year comparison, by 15.8 percentage points. Since 2010, their prices have almost doubled. This follows from the HB Index of Hypoteční banka, whose results were published on its website. The basic value of the index of 100 points represents the real estate prices as of January 1, 2010.
Land prices rose by 15.8 percentage points year on year to 194.8 points. “The rise in prices is due to a long-term excess of demand over supply, which is hampered by outdated zoning plans and insufficient capacity of utilities. In addition, networking costs are rising,” said Hypoteční bank, Petr Němeček.
Housing prices rose by 13.4 percentage points year-on-year to 177.4 points. They increased by 3.8 points quarter-on-quarter. Flats became more expensive in all regions, most in Moravia-Silesia, Karlovy Vary and South Moravia, and least in Prague. “The driving force of price growth is low rates on housing loans and a higher share of investment purchases. Developers have risen in price several times during the individual stages. In terms of categories, the highest price growth was again for 3 + 1 and 3 + kk apartments,” added Němeček. .
Family houses rose by 10.4 percentage points year-on-year to 159.2 points. Their prices rose by 3.2 percentage points quarter on quarter. According to Němeček, there is interest in real estate in good technical condition, as well as in those before reconstruction. “There is also a growing demand for family houses in more remote locations from large cities, to which lower prices are attached. In addition to residential real estate, there is also a high demand for individual recreational facilities. and materials, “added Němeček. According to him, the most is being built in the Central Bohemian Region and around Brno. Developers here offer mostly terraced houses.
According to the manufacturer of aerated concrete products Ytong of the company Xella, slow housing construction is also recording rising prices. According to the company, the total value of newly completed flats this year should be around 170 billion crowns, which, as last year and about ten billion less than in 2019. “At least in the next three years, housing construction will not return to the level of the last ancestor year. “We are recording record mortgage sales this year, but these are mainly aimed at projects developed before the start of the covid. New construction is stagnant and will probably remain at current levels for the next three years,” said Xella’s CEO for the Czech Republic. and Slovakia Peter Markovič.
HB Index tracks apartments, family houses and land. It is based on realistic estimates of market prices of real estate, which were acquired by Hypoteční banka clients through a mortgage loan.
Source: CTK
