How will property prices evolve in 2024?

The most frequent comparison is the prices of apartments and their development per m2. Let's see how the prices are in 2024.

At the end of last year, the average apartment in the Czech Republic was offered for CZK 95,500 per square metre. If we look at individual regions, Prague is still the price leader, where you can pay an average of CZK 121,700 per square metre. However, these figures include all available apartments on the market. If you prefer new-build, you have to count on an even higher amount - in February 2024, the average price was CZK 139,006 per square metre. The cheapest region in the country remains Ústí nad Labem, where the average price of an apartment is CZK 35,200 per square metre. The Moravian-Silesian region is in second place with a price of CZK 42,900 per square metre.

And how do prices vary by location?

In the previous 10 years, the price of flats in the Czech Republic increased by 150 %.
The national average price is close to CZK 100,000 per sqm.
The Ústí nad Labem region has the lowest prices in the long term.

And what about the prices of apartments in Prague and elsewhere

Although we have already indicated that Prague is among the most expensive locations when comparing individual regions, it surprisingly ranked only seventh in the ranking of cities and municipalities. How is this possible? The highest real estate prices in the Czech Republic can be found in the mountains. Mountain apartments in destinations such as Pec pod Sněžkou, Harrachov or Špindlerův Mlýn sell for an average record price of CZK 168,021. This fact leads to significant price anomalies, when on one side of the hill high sums are paid, while a few kilometres away, as the crow flies, the prices of apartments are a fraction of those in the mountains.

Price development of flats in the Czech Republic

In Prague and regional cities, property prices have risen by a staggering 150 % since 2014. This increase is almost the largest in the whole of Europe. Neither the covid pandemic nor the rise in interest rates have reversed this trend. Although the market has slowed down considerably in late 2022 and the first half of 2023 and apartment sales have stagnated, prices have only fallen by 10 to 15 % depending on type and location. Meanwhile, prices continue to rise moderately in 2024 and it is possible that they will soon reach new highs.

What influences housing prices?

Price of a cooperative apartment compared to a privately owned apartment

Co-operative flats can be 5 to 10 % cheaper than comparable privately owned flats.

Low supply of flats

There is little construction in the Czech Republic. According to the Czech Statistical Office, only 19,247 flats in apartment buildings will be built in 2022. In Prague, about 6,000 new flats are added to the supply every year, which is insufficient in the long term.

Demographic changes

The modern lifestyle is different from that of 30 years ago. With the increase in the number of singles and generally fewer people per household, more housing is needed than before, when households often shared more people.

Differences between regions

The population of the Central Bohemian Region and Prague is constantly growing, while the border regions in the Orlické Mountains and the Jeseníky Mountains are becoming depopulated. Better job opportunities, better health care, education and entertainment attract people from the peripheral regions to the centre.

Investment apartments

Czech investors tend to be conservative and trust real estate in the long term. The trend, where some apartments are used not only for housing but also as investments, further strengthens the price growth. Some investors even speculate only on the growth of property values and do not even rent out their apartments.

Source : Hypox.cz