Apartment Prices In the Czech Republic Fell by 1.2 %

Deloitte, a financial consulting firm, has reported a 1.2% decrease in apartment prices during the first quarter of this year compared to the previous quarter.

The average price per square meter stood at 92,200 CZK. This decline can be attributed to reduced demand resulting from inflation, higher mortgage rates, and increased real estate costs due to high energy expenses and ongoing construction projects.

Despite the decrease, apartment prices remain 70% higher than pre-pandemic levels.

Among the regions analyzed, the most significant drop in average apartment prices was observed in Liberec, where prices decreased by 15.6% compared to the last quarter of 2022.

Ostrava and Pardubice experienced price reductions of 12.6% and 11.2%, respectively. Conversely, Usti nad Labem saw an average price increase of 4.4%, while Zlin observed a rise of nearly 5%.

In Prague, overall prices remained relatively stable, with a slight increase of 0.2%. However, price fluctuations varied across different areas of the capital. Prague 8 witnessed a 5.5% increase in prices, followed by a 3.8% increase in Prague 3, and a 2.8% increase in Prague 9.

On the other hand, the city center experienced significant price declines, with a substantial drop of 18% in Prague 1 and 12% in Prague 2, according to Deloitte.

Petr Hána, a real estate market expert at Deloitte, noted that apartment sales in the Czech Republic decreased by 9.5% compared to the previous year, falling from 6,046 to 5,471 units.

However, the decline in the number of apartments sold in Prague was relatively less severe.

In the first quarter of 2023, approximately 64% of all apartment sales were in Prague, with 10% in Brno, and the remaining sales distributed among Pilsen and other regional cities.

More than half of the apartments sold were located in new buildings, with 1,605 units sold in prefabricated buildings and 1,174 units in brick buildings.