Czechia: Prices of flats per square meter rose in the fourth quarter

Prices of flats per square meter rose in the fourth quarter in all monitored districts and in the largest cities in the Czech Republic. Of the cities, prices rose the most in Ústí nad Labem, by almost 61 percent year on year. Of the districts, Jablonec nad Nisou became the most expensive, by 115 percent year-on-year. This follows from the analysis of the company FérMakléři.cz monitoring large cities and from the data of the districts of the Price Compass Sreality.cz.

The smallest price increase in large cities was in Prague, where prices rose by 16 percent. In the capital, however, flats with an average price of CZK 120,877 per square meter were the most expensive, while the cheapest was Ústí nad Labem with a price of CZK 37,373. The company FérMakléři.cz compared the prices of flats in the eight largest cities out of nine, data for Liberec are not available.

According to the executive of FérMakléři.cz Lumír Kunz, prices are pushing up prices with a very low offer. Expensive mortgages and energy are also reflected in the total price of housing. "Returning to the purchase prices of apartments, however, it is clear that there is no real reason to reduce the price in the future," he said.

After Ústí nad Labem, prices rose the most year-on-year in Ostrava (by 39.8 percent), Hradec Králové (by 37.6 percent) and České Budějovice (by 35.8 percent). On the contrary, after Prague they increased the least in Olomouc (by 27 percent).

After Prague, the most expensive apartments were in Brno with an average price of CZK 99,217 per square meter. This was followed by Hradec Králové (CZK 76,284) and České Budějovice (CZK 68,394). The cheapest Ústí nad Labem was followed by Ostrava with an average price of CZK 46,354 per square meter.

Kunz also said that there is still the potential for higher year-on-year price growth in northern Bohemia. He cited three times the price per square meter of a Prague apartment in comparison with an apartment in Ústí nad Labem. "Anyone who is reasonable and has money is investing now because inflation will devalue the money saved," Kunz added.

Sreality.cz data compare apartments with an area of ​​40 to 60 square meters in very good condition and in personal ownership in the districts. Hana Kontriš, the manager of the Sreality.cz advertising services team, told ČTK that the biggest boom was in the Jablonec nad Nisou district. "It can be assumed that Jablonec nad Nisou attracted buyers interested in residential recreational real estate, especially those in the Giant Mountains in Harrachov or in the Jizera Mountains, or real estate in their immediate vicinity," she said.

Jablonec is followed by the districts of Most, Teplice and Karviná, ie districts with strong ties to the coal and mining industries. Year-on-year price growth is as high as 81 percent in the Most region, 71 percent in the Teplice region and 66 percent in the Karviná region.

The Sreality.cz server recorded growth of around or above 50 percent in the districts of Ústí nad Labem (60 percent), Hradec Králové (52 percent), Karlovy Vary (49 percent), České Budějovice (48 percent) and Ostrava-město (46 percent). On the contrary, the smallest growth was recorded in the city districts of Prague.

Image: Average prices of dwellings in the largest cities in the Czech Republic at the end of Q4, year-on-year and quarter-on-quarter comparison (in percent).

Source: Sreality.cz, Férmakléři.cz and CTK