The real estate market in the Czech Republic experienced a notable downturn in 2021, marking the lowest sales of apartments and houses since 2015. According to data from the Valuo portal, which analyzes information from the Land Registry and public advertisements, apartment sales decreased by nine percent compared to 2020, while house sales plummeted by 17 percent. Additionally, the market for cottages and cabins saw a substantial 19 percent decline.

Throughout the year, apartments with layouts of 2+1 and 2+kk were the most sought-after, accounting for an average of 44 percent of all sales. Remarkably, the average size of apartments sold in the Czech Republic remained relatively consistent at 66 square meters, mirroring figures from the previous four years.

The total number of apartments sold amounted to 55,180, while houses accounted for 34,769 sales. Compared to the peak year of 2020, which saw 73,605 apartments and 55,941 homes sold, apartment sales dropped by one-third and house sales by 60 percent.

While some regions maintained stability in their property markets, others experienced significant declines. Prague, the South Moravian, and Pardubice regions exhibited relatively stable conditions, with Pardubice even witnessing a notable year-on-year increase of 23 percent in apartment sales. However, all regions reported decreases in house sales, with Prague recording the most significant decline at 27 percent.

Traditionally, Prague has held a dominant position in the apartment market, accounting for 24 percent of all apartment sales in the country. However, when considering apartment sales per 1,000 inhabitants, Prague ranked 17th. The highest rates of apartment sales per capita were observed in Milovice in the Nymburk region, Mariánské Lázně, and Karlovy Vary. In contrast, the capital city accounted for a 3.5 percent share of house sales.

This decline in property sales highlights the shifting dynamics of the Czech real estate market and underscores the challenges faced by both buyers and sellers amid changing economic conditions and market trends.

Article by Prague Forum