The average price of apartments in Prague returned to the values of 2021 in the 4th quarter
Update: 01/22/2023 06:30
Issued by: 22/01/2023, 06:30
Prague – In the fourth quarter of spring, the average price of older apartments in Prague returned to the value of the end of 2021. Compared to the increase in prices, the average apartment of 65 square meters in the wider center of the metropolis lost almost 680,000 crowns. This follows from a study by the real estate group European Housing Services (EHS), which uses data from its founding members – real estate services Bezrealitka and Maxima Reality. ČTK has the report available.
At the end of the first quarter of last year, an older apartment in Prague cost almost 123,000 crowns per square meter. During the year, however, the price fell, and in the fourth quarter it was roughly at 112,500 crowns per square meter, i.e. practically the same as in the fourth quarter of 2021. A similar price development was recorded in Brno, where the same apartment lost a value of 475,000 crowns compared to the previous maximum, according to EHS. The average price of a square meter in Brno fell to 87,902 crowns per square meter.
“The gap between individual apartments continues to widen on the market. Prices fall exclusively where the property has one of the handicaps – for example, a long driving distance, is before renovation or in an energy-inefficient building. Prague and Brno apartments in good locations are still sold for similar prices like in the summer,” said Hendrik Meyer, head of EHS, for Bezrealitky, cz.
Apartments in the Ústí Region were sold the cheapest at 32,486 crowns per square meter, four percent less than in the third quarter. In the Karlovy Vary region, they were for 36,406 crowns and in the Moravian-Silesian region for 40,273 crowns per square meter, in both regions there was a decrease of nine percent.
“It’s already clear that the real estate market is on a slide. Now we’re just trying to predict how long it will last,” said EHS’s Meyer. He estimates that partial drops in prices for older apartments can still be expected in the first quarter of this year, but rather stagnation will prevail. In the second half of the spring, the market will take a breather and with it a significant turn may occur, Meyer said.
According to the fourth quarter of the study, we did the number of people interested in an apartment, in August an average of 39 people applied for one, at the end of the year it was 16. According to EHS, the reason is the larger number of properties on offer. “There were not only houses and apartments left by Ukrainian refugees returning to their homeland, but also renovated apartments, bought just before the tightening of mortgage loans in the spring of last year,” reports EHS.
Especially in Prague and Brno, the number of households is growing for which it is more economically advantageous to start renting out their large apartment and move to a smaller one. Or it was, which he originally provided, for example, to his student offspring, today they prefer to put it on free offer. “More and more households are compensating for the increase in costs by renting,” added Tomáš Bojda, director of Tvůj Správce services.