At the end of last year, the Czech housing market presented an unusual trend: while apartment prices fell in most regional cities, the national average still climbed to a new record. This was largely driven by Prague, where the sale of new developments—typically priced higher than properties elsewhere—kept overall figures rising.
According to consulting firm Deloitte, the average price of an apartment in regional cities and select larger towns in the Central Bohemian Region increased by 5.8%, reaching 110,100 crowns (4383 euro) per square meter. This marks the first time that prices have surpassed the 110,000-crown threshold.
For buyers, this means an average 70-square-meter apartment now costs approximately 7.7 million crowns. Year-over-year, apartment prices have surged by 15.3%.
Real estate experts anticipate continued price growth in 2024. “When we compare data for the entire year 2024, we see improved public sentiment toward real estate purchases. There was also pent-up demand from 2023,” said Petr Hána, director of Deloitte’s real estate and construction department.
Other analysts echo this outlook. Josef Lebeda, a property investment expert at Resimo, predicts that apartment prices will be 3% to 5% higher by the second half of the year.
The Czech National Bank also forecasted a 5.7% price increase at the end of 2023 but cautioned that rising demand combined with ongoing supply shortages could push prices even higher.
Interestingly, despite the national increase, apartment prices fell in nine out of fourteen regions during the last quarter of 2023, with some areas experiencing significant drops. For example, the South Bohemian Region saw an 8.2% decline.
“During the fourth quarter, the market and especially demand were influenced by slight economic growth, investment interest in real estate, limited supply, and still relatively high mortgage interest rates, which restricted access to housing finance,” Hána explained.
While regional price fluctuations may be temporary, the overall market trend suggests that apartment prices in the Czech Republic are set to keep climbing.
