“For the next months of this year, we expect the year-on-year growth rate of real estate prices to stabilize at single-digit percentage values,” said Martin Vašek, CEO of ČSOB Hypoteční banka.
It could change, for example, the development of inflation or other factors that influence real estate prices, i.e. building materials, for example.
ČSOB does not publish specific real estate prices. According to data from Reas, the average apartment in the Czech Republic was sold for 5.3 million crowns and the average house for 6.9 million crowns in the first quarter.
The bank states that apartments in the Zlín region rose in price the fastest. In the first three months there, compared to the end of last year, prices rose by more than four percent.
Micro-apartments, or small units, usually around 20 square meters, apparently reached their current ceiling. Investors in their case, especially in the regions, run into the limits of acceptable profitability for them.
The market of family houses is currently affected by the high prices of building materials, which make new buildings more expensive. Interest in older houses in worse technical condition cooled after the state first suspended and then significantly reduced subsidies for their renovations.
While the price of apartments and houses is slowing down, the trend is the opposite for land. Year-on-year, their prices increased by eight percent, last year it was 7.2 percent. Outdated territorial plans of municipalities are pushing growth.
