In the second quarter of this year, the average price of flats in the Czech Republic fell by 1.4 percent quarter-on-quarter to CZK 90,900 per sqm. Their price decreased for the third quarter in a row. All large cities except Pardubice, Jihlava and Ostrava recorded a decline. It follows from the latest data of the Real Index ranking, which is regularly published by the consulting and technology company Deloitte.
“The second quarter of this year was marked by a continued decline. With a few exceptions, this is not a dramatic drop, but rather a continuing trend, which was triggered by high inflation and rising energy prices, rising interest rates and also construction prices. As a result of these influences, there was a drop in demand, which was reflected in property prices,” said Petr Hána, a real estate market expert from the consulting company Deloitte.
The highest decline across the country was recorded in Zlín by 8.6 percent, Karlovy Vary by 6.7 percent, České Budějovice by 4.5 percent and Hradec Králové by 3.7 percent. The highest growth was in Pardubice by 10.6 percent, Jihlava by 7.5 percent and Ostrava by 7.1 percent.
The most expensive properties are still in Prague, where a square metre costs CZK 114,500. In Brno, the average price per square metre is CZK 94,300 and in the Central Bohemia Region it is CZK 74,400. The lowest prices of flats are in Ústí nad Labem, where a square metre can be bought for CZK 33,800. In Ostrava a square metre costs CZK 41,700 and in Karlovy Vary CZK 43,300.
According to Deloitte, sales prices of flats in Prague and regional cities have increased by 238 percent since 2014. The average price per square metre in new buildings was CZK 108,100, CZK 88,700 in brick houses and CZK 70,700 in prefabricated houses. In total, according to Hana, 6344 flats were sold in the period under review, of which 2705 were in new buildings. Of these, 1,852 were first sales. More than two thousand flats were sold in prefabricated houses and more than 1,500 flats were sold in brick buildings.
Hána does not expect any changes in the real estate market in the following period. “Interest rates and other factors influencing the development of the real estate market remain unchanged for the time being, which will push developers in particular towards various initiatives and benefit offers. Compared to brick and prefabricated houses, flats in new buildings are tens of thousands of crowns per meter more expensive,” Hána added.
Source: Deloitte and CTK
