Brno’s older flats reached the same selling price as the Prague flat just before the outbreak of the pandemic. In the 4th quarter of last year, the prices of older flats sold in the whole of the Czech Republic rose by 19 percent to 46,119 crowns per square meter. This follows from a study by the real estate group European Housing Services (EHS).
In Brno, older flats are sold for the first time for more than CZK 87,500 sqm. The price of family houses in the South Moravian Region fell to about 43,000 crowns per square meter. Brno rents fell to CZK 244 sqm, quarter on quarter.
In Prague, the average selling price per square meter is around CZK 112,000. Compared to the 3rd quarter, this is a decrease in the order of hundred crowns. According to the EEC, flats intended for professional investors are receiving less and less in the public offer. Their prices in Prague are significantly above this limit.
Rents in Prague have risen to the maximum since the outbreak of the coronavirus crisis. The average square meter of an apartment is rented for CZK 279. According to the EEC, growth is widespread and is mainly driven by inflation.
“The market is beginning to be divided into an offer for ordinary households with a clear financial limit and an offer for investors who have no problem overpaying in the given situation,” said Hendrik Meyer, head of EHS and real estate services Bezrealitky. “Investors buying apartments with greater speed and in even larger volumes, especially in new constructions or generally reconstructed apartment buildings,” he added.
The price of Prague family houses returned by 16.9 percent quarter-on-quarter to the usual price level of around CZK 88,500 sqm.
According to the EEC, prices in the Central Bohemian Region are currently facing the financial possibilities of households. Less available mortgages and rising prices of materials and construction work brought a drop in Central Bohemian prices for both family houses to about CZK 56,000 sqm and apartments with a decrease of 2.86 percent to CZK 68,000 sqm.
In the Krkonoše Mountains, according to the EEC, the price growth of departmental housing is spilling over into ordinary flats, which may have recreational use. The average price of flats in the Hradec Králové Region, with CZK 78,500 sqm, became the third highest in the country after Prague and Brno.
Source: European Housing Services and CTK
