Despite a slowdown in growth, house prices across the Czech Republic continue to rise. Notably, prices in the Pilsen and Pardubice regions surged by nearly 13%. For the first time in history, the average price per square metre has exceeded 100,000 crowns.
According to the latest data from the Deloitte Real Index, prices rose by 2.4% to an average of CZK 101,700 per square metre in the second quarter of this year. In comparison, the first quarter saw a 4% rise, with an average price of CZK 99,300 per square metre.
Price increases were recorded in 12 of the 14 regions. The most significant hikes occurred in Pilsen (+12.8%), Pardubice (+12.7%), Olomouc (+9.6%), Vysočina (+9.2%), and Moravian-Silesia (+6.7%). Conversely, slight declines were noted in the South Bohemia region (-0.1%) and Karlovy Vary (-4.4%).
Price Increases in Prague and Brno
Experts attribute the rising house prices primarily to increased demand, a trend also visible in the country’s two largest cities, Prague and Brno. In Prague, prices rose by 5.7%, reaching CZK 132,000 per square metre. In Brno, prices increased by 2.5% to CZK 104,500 per square metre.
Prague remains the most expensive location for flats, followed by the South Moravia region. On the other end of the spectrum, Karlovy Vary (with a 4.4% drop to CZK 44,300 per square metre) and Ústí nad Labem (up 4.2% to CZK 34,900 per square metre) recorded the lowest prices.
Rising Demand and a Chronic Housing Shortage
Deloitte expert Petr Hána emphasizes that the upward trend in prices is expected to continue. “After a phase of stagnation or falling prices, we are now seeing the third consecutive increase. The residential markets in Prague and Brno, in particular, have surpassed the average transaction limit of CZK 100,000 per square metre. This trend is being reinforced by lower interest rates, decreasing inflation, and reduced energy costs,” explains Hána.
Another critical issue in the Czech property market is the lack of new construction. “The number of new flats being built is insufficient to meet demand, leading to a chronic shortage. Until this changes, rising prices will continue to define the market,” Hána adds.
Regional Differences in Prague
In Prague, prices rose in almost all districts, with the sharpest increases seen in Prague 7 (+14.0% to CZK 146,400 per square metre), Prague 2 (+9.9% to CZK 161,900), and Prague 8 (+9.6% to CZK 138,400). However, Prague 1 experienced a notable price drop of -12.0%, bringing the average to CZK 172,700 per square metre. While Prague 1 remains the most expensive district, the cheapest flats are in Prague 4, where prices average CZK 118,600 per square metre.
The Deloitte Real Index, which has been published since 2015, provides detailed insights into the development of flat prices in Prague and other major Czech cities. The data is based exclusively on actual sales transactions and is compared across quarters to identify emerging trends.
