Market prices of flats, family houses and land in the Czech Republic in the second quarter, similarly to the quarter before, rose the most in the last ten years. Most in land, by 5.5 percent. Land also rose the most in year-on-year terms, by 18.7 percent. Since 2010, their prices have more than doubled. This follows from the HB Index of Hypoteční banka. The basic value of the index of 100 points represents the real estate prices as of January 1, 2010.
Land prices rose by 18.7 percent year on year Since 2010, they have increased by 105.5 percent. “The offer continues to be hampered by outdated zoning plans and insufficient capacity of utility networks. Land for speculation without an approved zoning plan is also being sold. for recreational facilities,” said Petr Němeček, Director of the Real Estate Department of Hypoteční banka.
Housing prices rose by 14.8 percent year on year to 184.1 points. They grew by 3.8 percent quarter on quarter. Flats became more expensive in all regions, mostly in the Moravian-Silesian Region, least in Prague and in the Central Bohemian Region. “Developers in the capital have risen in price several times during the individual stages. In the first half of the year, 4,700 new flats were sold. Prices in the 2 + 1 and 2 + KK categories rose again,” Němeček added.
Family houses rose by 12.9 percent year on year to 165.9 points. Their prices rose by 4.2 percent quarter on quarter. According to the Chairman of the Board of Directors of Hypoteční banka and ČSOB Stavební spořitelna Jiří Feix, the prices of construction work and materials, which rose above average, contributed to the rise in prices. “High growth in wood prices is affecting the prices of wooden buildings. There is also interest in real estate before reconstruction or family houses in distant locations from large cities. At the same time, we observe that in new family houses rainwater or modern boilers,” said Feix.
According to him, the rise in price of real estate will continue in the next six months, but the pace will slow down slightly. “However, annual growth in apartment and land prices will remain above 12 percent. The current high demand for real estate will continue, especially if investor interest does not subside and interest rates remain relatively low,” Feix added.
HB Index tracks apartments, family houses and land. It is based on realistic estimates of real estate market prices purchased by Hypoteční banka clients through a mortgage loan.
Source: Hypoteční banka and CTK
