HOW DID THE REAL ESTATE MARKET PERFORM IN THE FIRST THREE MONTHS OF THIS YEAR?

2. 6. 2023

In the first quarter, the real estate market saw a slight recovery. Increased demand went hand in hand with a moderate decrease in interest rates for mortgages. The number of mortgages provided in that period was the highest from last June, when the market became substantially slower.

The prices of new flats in Prague are now more or less stagnating: the average offer price is about CZK 152,000 / m 2 . That means a 4.3% year-on-year increase but in comparison with the previous quarter it is an increase by a mere 0.2%.

However, rental prices keep rising. They have increased by 17% year-on-year and further increase can be expected as a result of the decreasing number of flats in Prague available for sale. The current price of rental housing amounts to approximately CZK 407 per square meter.

Prices of rental housing are now being pushed up by the lower number of flats available. Approximately twenty thousand of them were available for a long time but in the past few years there has been a decrease and now only about sixteen thousand flats are available.