The Czech real estate landscape is undergoing a significant transformation in 2023, marked by a notable decline in apartment offering prices, with some locations experiencing reductions of up to 20%, according to an analysis by Sreality.cz. This trend encompasses both new and older apartments, excluding units undergoing reconstruction.

The most pronounced decrease in apartment prices is observed in the Bruntál district, where prices have plummeted by over 21%, resulting in a cost of 29,018 Czech koruna per square meter. The Znojmo district witnessed a 19% drop, with prices reaching 53,395 Czech koruna per square meter, while in Česká Lípa, a reduction of 18% brought prices down to 41,000 Czech koruna per square meter.

Even in the capital city of Prague, there has been a decline in prices ranging from two to eight percent, as reported by Sreality.cz. Notably, the average advertised price per square meter varies across different Prague districts, with Prague 1 commanding 188,000 Czech koruna and Prague 4 at 112,500 Czech koruna.

As the year concludes, the completion of additional construction stages in Prague’s Karlín district is expected to contribute hundreds of new apartments to the market. Experts anticipate a potential reversal in the trend, with prices in Prague likely to start rising. Martin Machala, formerly associated with the Heimstaden rental housing fund and now leading the mortgage start-up Ownest, notes that Prague still has room for price growth, aligning with comparisons with Western Europe.

Brno, the second most significant real estate market in the country after Prague, has also witnessed a seven percent decrease in offering prices, averaging 96,099 Czech koruna per square meter, as indicated by the Real Estate Insider analytical portal. This trend aligns with a broader pattern of decreasing offering prices observed over the past three years, highlighting the evolving dynamics of the Czech real estate market.

Article by Prague Forum