Rising land prices in the Czech Republic are leading to a shift in purchasing patterns, with buyers increasingly favoring smaller plots of land. While land prices have experienced a slight decrease, they have not fallen to the levels seen two years ago. In the most sought-after areas, prices continue to rise.

According to Jana Panochová, a consultant at real estate agency Lexxus Norton, the average price per square meter in Prague currently stands at around 20,000 CZK. Although this figure is still increasing, the overall cost of land is decreasing due to greater demand for smaller plots.

Iztok Toplak, a real estate agent at RE/MAX G8 Reality, explains that while prices for larger land plots are decreasing, the price per square meter is on the rise due to the higher demand for smaller parcels.

However, prices vary significantly depending on the location. Toplak notes that land prices are decreasing in rural areas but still remain much higher than they were five years ago.

Despite a decrease in the number of plots sold, with a drop of over 30% in 2021 and 40% in 2022, the land market is experiencing more of a correction rather than a significant decline in prices.

Jan Vejmělek, an analyst at Komerční banka, points out that land prices tend to decrease during periods of severe recession, such as the global recession in 2009. The current economic slowdown is not significant enough to result in a substantial drop in land prices.

Vladimír Brůna of B&K Nemovitostní Investice predicts that while land prices may decrease in some areas, they will likely increase over the next five to ten years due to the decreasing availability of land.

As the number of available land plots increases, prospective buyers must carefully review local and regional zoning plans to determine the allowable construction and development options on their purchased land. Understanding the regulations and restrictions will ensure informed decision-making and avoid potential setbacks in realizing their vision for the property.

Article by Prague Forum