Market prices for residential property and land continued to rise in the Czech Republic in the first quarter of 2018. According to the Hypoteční banka, the average price of a flat rose 12 percent compared to the first quarter of 2017 and 3.1 percent compared to Q4. On its residential prices index, which takes January 1, 2010 as 100 points, prices are now at 129.6 points, indicating a price rise of 30 percent. Hypoteční banka’s head of real estate Petr Němeček says the rise in prices is taking place all over the country. “Flats rose in comparison to the previous quarter in all regions of the Czech Republic with the exception of the Usti region where prices stagnated…They rose quickets in the regions of Southern Bohemia and Central Bohemia. We’re also following rapid rises in Prague.”
Family homes rose 8 percentage points over the past 12 months to 122.1 on the bank’s index, inflating by 1.7 points from Q4 2017. Němeček says that older family homes are now selling quickly, as they are cheaper and allow families to improve them as their finances allow it. Land prices rose just 4.7 percent since Q1 2017 to 142.5 points. “Demand continues to be stable. High land prices around the big cities is pushing demand to more distant locations.”
