In the third quarter of this year, the Czech Republic’s housing market witnessed a decline of more than six percent year-on-year in apartment prices, according to an analysis by ČSOB Group. However, experts suggest that the likelihood of further price drops is diminishing, pointing towards a potential stabilization in the market. In contrast, family homes experienced a slight upturn, with an average rise of 1.4 percent.

Martin Vašek, CEO of Hypoteční banka, expressed optimism, stating, “We expect apartment prices to stabilize, and perhaps we are nearing a turning point.” Notably, there has been increased interest in apartment units with layouts 3+1 and 3+kk, which have experienced slower price declines compared to previous quarters.

A noteworthy observation is that the prices of smaller apartments with a 1+1 layout saw the most significant drop among all apartment categories, presenting an atypical trend. This divergence in price movements among different types of apartments suggests a nuanced market landscape.

For those looking for favorable opportunities to purchase apartments, the most improved conditions are noted in the Pardubice, Moravian-Silesian, and Ústí nad Labem regions. These areas have seen the most substantial quarterly price decrease, providing potential buyers with a more advantageous market.

In Prague, sales have received a boost due to incentives from developers. The fall in prices has halted, and the offering price of new buildings has shown minimal changes compared to the previous period. Kateřina Poláková from consulting company Knight Frank reveals that the price per square meter of a new apartment in Prague is currently around 150 thousand korunas.

In conclusion, while the overall trend indicates a stabilization in the Czech housing market with a decreasing likelihood of further price drops, the nuances in pricing dynamics across different types of properties and regional variations are worth noting. The market’s resilience, particularly in family home prices and specific regions, reflects the adaptability and responsiveness of the real estate sector to changing economic conditions.

Article by Prague Forum