Prices of older flats rose between four and 13 percent year-on-year in almost all major Czech cities in the first quarter of this year. The exception was Ústí nad Labem, where prices fell by four percent year-on-year. The most expensive flats were in Ostrava. Prices of older flats also rose quarter-on-quarter in all cities, with only prices in Brno remaining unchanged. The median price in the Czech Republic is CZK 60,737 per square metre, 4.6 per cent higher year-on-year. This is according to an analysis by the real estate company FérMakléři.cz.
Traditionally, the most expensive flats are in Prague, where in the first quarter a square metre in an older flat cost CZK 125,400 on average. Three months ago, prices in Prague were around CZK 121,700 per square metre, and six months ago they were about CZK 2,000 lower. Year-on-year, prices in the metropolis have risen by almost CZK 8,000 per square metre and an older apartment of 80 square metres costs around CZK 10 million, according to the analysis. This time last year, an apartment of a similar size could be bought for CZK 9.43 million.
Although prices of older flats in Brno remained the same quarter-on-quarter, they rose by seven per cent year-on-year. Currently, the price per square metre is around CZK 97,000 and an older apartment with an area of 80 square metres is around CZK 7.76 million. This is around 574,000 more than in the first quarter of last year.
After Prague and Brno, older flats cost the most in Hradec Králové and Olomouc, but even in these cities prices rose by lower percentages quarter-on-quarter and compared to the same period in 2023. Year-on-year and quarter-on-quarter, prices rose the most in Ostrava, the third largest city in the Czech Republic. A buyer will pay CZK 47,261 per square metre in an older apartment there. This is CZK 3,000 more than in the fourth quarter of last year and CZK 6,000 more than in the first quarter of 2023. Currently, an 80 sqm apartment in Ostrava costs CZK 3.78 million on average, or CZK 477,000 more than a year ago.
According to David Eim, deputy chairman of the board of Gepard Finance, although mortgage interest rates are falling, their amount is still a barrier for many people to buy property. “Average offer rates are currently somewhere around 5.3 to 5.5 per cent. The trend is downwards and I expect offer rates to come within sight of the four per cent level within this year. And we should learn to see that level as quite normal and standard,” Eim added.
According to Swiss Life Hypoindex data, mortgage rates are falling, although not at the same rate as the Czech National Bank’s base rates. The latter cut the two-week repo rate by half a percentage point to 5.75 percent at its March meeting.
Source: CTK
