In the fourth quarter of 2024, flat prices in the Czech Republic were 16% higher than in the same period of the previous year, according to the latest data from the Sreality.cz portal and its new Sreality.cz index. This index tracks the development of asking prices for medium-sized flats in old buildings across the country. While these figures are positive news for property owners, they present a challenge for potential buyers looking to purchase their own homes.
The Czech property market continues to see an upward trend in flat prices. Compared to the fourth quarter of 2023, data from Sreality.cz shows a 16.2% increase in asking prices for flats nationwide.
The Karlovy Vary region leads with a notable 20% increase in asking prices compared to the previous year. The South Moravia and Moravian-Silesian regions recorded a rise of 18%, while the smallest price increases were seen in the Hradec Králové region (6%) and Vysočina (8%). No region reported a decline in prices.
Rental Prices Rising in Line with Property Prices, While Interest Rates Remain High
Alongside rising house prices, rental prices are also on the increase. “The rise in house prices is generally reflected in higher rents, which are already very high in the major cities,” comments Hana Kontriš, Head of Sector Services at Seznam.cz.
The time it takes for flats to be sold on the Sreality.cz portal is also shortening, indicating quicker sales. “The market is also likely to see a sell-off of lower-priced properties and new builds that developers have been unable to sell recently, which could push prices up further,” Kontriš adds.
For those looking to buy a new home with a mortgage, the outlook is less favourable due to high interest rates. “With the property market moving slowly, banks unfortunately have little incentive to lower interest rates. While the Czech National Bank (CNB) has lowered key interest rates throughout the year, this has yet to significantly reduce mortgage rates. A more substantial reduction by banks would be appropriate, but according to the latest market reports, any significant cuts are unlikely,” Kontriš concludes.
Analysis Methodology
The analysis includes flats advertised on the Sreality.cz portal with an area of 50 to 80 m² and floor plans of 2+kk, 2+1, 3+kk, and 3+1, which are privately owned, in very good or good condition, or have been renovated.
