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One hundred thousand crowns per square meter. Apartment prices have broken a new milestone

The value of real estate increased for the third quarter in a row. “The current situation definitively confirms that the growth trend, which began with the reduction of interest rates, the fading of high inflation and the drop in energy prices, continues and will continue,” said Petr Hána, an expert on the real estate market from the consulting and technology company Deloitte.

The company is based on completed sales registered in the real estate register. Across the country, people bought apartments for an average of 101,700 crowns per square meter. The average 70-meter apartment cost 7.1 million. That is almost 12 percent more than a year ago.

Own housing is traditionally the most expensive in Prague, where it cost 132,000 crowns per square meter between April and June, which is 15 percent more year-on-year. It can be purchased cheapest in the Ústí Region, for 34,900 crowns per square meter. Even here, compared to last year, apartments became more expensive, if only by roughly three percent.

Higher wages are not enough, rent increases faster. And the prices will rise even more

Economy

The rise in prices again reduces the availability of apartments, which are already among the worst in Europe. Real estate prices are rising faster than wages this year. While apartments rose in price by the aforementioned almost 12 percent year-on-year, the average national wage rose by only 6.5 percent, according to data from the Czech Statistical Office.

There is no improvement in sight

“The situation on the Czech real estate market is significantly affected by the stalled construction of new apartments, which I would not be afraid to call chronic. “Thousands fewer apartments than needed are built every year throughout our country,” stated Hána.

He sees no hope for improvement now. According to him, the real estate market will continue to move in the same direction.

Petr Dufek, chief economist of Creditas bank, agrees with this. According to him, the demand for buying apartments will continue to grow due to the fact that investors see them as a chance to get an interesting appreciation of money with minimal risk.

Apartment prices continue to grow
Region Price in the 2nd quarter (per m2) Change against the 1st quarter
The capital Prague 132,000 CZK 5.7%
South Bohemia 67,500 CZK -0.1%
South Moravian 104,500 CZK 2.5%
Karlovy Vary 44,300 CZK -4.4%
Královéhradecky 76,000 CZK 3.0%
Liberecký 67,200 CZK 2.7%
Moravian-Silesian 47,700 CZK 6.7%
Olomouc 81,200 CZK 9.6%
Pardubice 76,400 CZK 12.7%
Pilsen 74,600 CZK 12.8%
Central Bohemia 83,100 CZK 5.1%
Ústí 34,900 CZK 4.2%
Highlands 57,200 CZK 9.2%
Zlínský 62,800 CZK 1.4%
Source: Deloitte Real Index

“Due to the high accumulated rate of savings, it is likely that real estate will continue to be among the sought-after investment opportunities for the financially stronger part of the population,” he declared.

Deloitte data indicates that a total of 7,182 apartments were sold in the spring. For comparison, last year there were 6,344, i.e. about 13 percent less. People bought more apartments both in older brick and panel apartments and in more expensive new buildings.

The numbers of consultants also confirm the experience of developers. For example, the company J&T Real Estate, which launched the sale of 182 apartments in the Nový Rohan project in Prague’s Karlín this spring, reports greater interest from buyers. “Specifically, in this locality, we are registering interest in apartments with a larger area. In just three months, we sold half of the 3+kk and 4+kk apartments on offer,” describes Jiří Ochetz, a member of the company’s board of directors.

In total, developers sold 1,900 new apartments in the capital between April and June, which is the fourth largest number since 2011.

People started buying new apartments in bulk. Prices are returning to record highs

Economy

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