The prices of flats and houses continue to rise, and they are already hitting the ceiling in Prague
More expensive mortgages direct many people to rental housing. They have already stopped the decline and slightly reduced.
“An average apartment is sold in Prague for almost 113 thousand crowns per square meter, however, the market has demonstrably hit its ceiling and demand has weakened in favor of other regions – not only Central Bohemia,” said monitoring reports Bezrealitky.cz and Maxima Reality.
Brno has a new record
The average price for Prague family houses in the quarter rose to 106.5 thousand crowns per square meter and demand expanded by six percent.
Brno has a new record last year, where flats were sold for more than 80,000 crowns per meter on average, ie as much as a Prague flat cost at the beginning of 2019. The average price of family houses in the South Moravian Region fell quite possibly against this, and to less than 43 thousand CZK per meter.
Sales prices and names | |||
Average price per m2 |
Family house | Be | Average rent per m2 |
Capital City of Prague | 106 401 CZK | 112 756 CZK | 272 CZK |
Central Bohemian Region | 59 650 CZK | 71 233 CZK | 211 CZK |
South Bohemian Region | CZK 36,533 | CZK 50,353 | 182 CZK |
Pilsen Region | CZK 30,594 | CZK 52,223 | 190 CZK |
Karlovy Vary Region | CZK 44,526 | CZK 48,461 | 155 CZK |
Usti Region | CZK 31,693 | 29 193 CZK | 156 CZK |
Liberec region | CZK 42,491 | CZK 54,741 | 187 CZK |
Hradec Kralove region | CZK 31,447 | 58 358 CZK | 198 CZK |
Pardubice region | CZK 34,430 | 59 730 CZK | 185 CZK |
Olomouc region | CZK 35,724 | 54 105 CZK | 185 CZK |
South-Moravian region | 42 840 CZK | 82 880 CZK | 247 CZK |
Zlín Region | CZK 32,687 | CZK 47,568 | 177 CZK |
Highlands | CZK 24,468 | 51 643 CZK | 163 CZK |
Moravian-Silesian Region | 29 146 CZK | CZK 39,545 | 158 CZK |
Source: Bezrealitky.cz |
For the first time, these flats in Central Bohemian cities averaged over 70,000 crowns per meter at a year-on-year growth rate of 21.2 percent. The main reason is the strong demand from households that want to leave Prague and exchange longer travel times for a lower property price.
This also applies to family houses further from the city, which still have a favorable price offer – they are now sold in the Central Bohemian Region for 60,000 per square meter.
A significant change in the third quarter took place in rents. The number of applicants in demand has doubled and the total number of inquiries has approached 210,000 in the third quarter.
Rental prices stopped falling, although they increased only slightly on average and the number of closed rental prices was slightly higher than before the lower holidays.
In Prague, rents thus stabilized at 272 crowns per rented square meter of apartment, which is a three percent increase compared to the previous quarter.
In Brno, the rental price for an apartment increased by four percent to 247 crowns per rented square meter. “I expect that the end of the year will be marked by a rapidly rising rental price in Prague and Brno. Rental housing prices will drive not only less affordable mortgages, but also inflation and rising energy prices. Although the apartment is still available due to weak tourism, we may soon find ourselves in a situation where one apartment is in demand by several dozen people on average, “I believe the head of the Bezrealitky.cz server, Henryk Meyer.