According to the latest data from our official partner ISG – Investment Solutions Group, the Czech real estate market demonstrated notable resilience in June 2024, with significant developments across various regions.
Prague Bounces Back After a surprising dip in May, Prague’s property market rebounded strongly in June. Prices in the capital surged by 4.1%, completely negating the previous month’s losses and pushing values to new heights. This dramatic turnaround suggests that May’s decline was likely an anomaly rather than the start of a downward trend.
National Market Stability
While Prague led the charge, the national real estate market remained relatively stable. The country-wide average saw a modest increase of 0.4%, indicating steady growth across most regions.
Brno’s Remarkable Growth Brno emerged as a standout performer in June’s market review.
The city recorded a substantial 3.6% price increase, reaching new record levels. Even more impressive is Brno’s annual growth rate of 15.6%. This surge isn’t just a matter of inflated prices – transaction volumes in Brno have tripled over the past 12 months, signaling robust demand and market activity.
Rental Market Dynamics
The rental market in Prague experienced a slight cooling, with rates dropping by 1.1% in June. However, this follows several months of stability, with average rents hovering around 430 crowns per square meter. ISG’s analysis suggests this could be the new norm for Prague’s rental prices, at least in the short term.
Mortgage Rates Continue to Ease
June marked the 14th consecutive month of declining mortgage rates, with the average rate now standing at 5.51%. While this represents only a slight decrease from the previous month, it’s part of a consistent downward trend. Some lenders are now offering rates below 5%, although these competitive offers don’t seem to have significantly impacted the overall average yet.
Future Outlook
ISG’s experts suggest that the future direction of the market, particularly in terms of rent prices, may depend on interest rate movements and property purchase trends. If interest rates decrease and property purchases increase, we might see a corresponding drop in rental prices. Conversely, if interest rates remain stable and property purchases stay low, rent prices could continue to rise.
As the Czech real estate market continues to evolve, ISG – Investment Solutions Group remains committed to providing in-depth analysis and insights. For those interested in exploring investment opportunities or seeking more detailed market information, visit www.investmentsolutions.group.
This article is based on data and analysis provided by ISG – Investment Solutions Group, Prague Daily News’ official partner for real estate market insights.
