Property Prices in Prague Continue to Rise
Owning an apartment, family house, or any other property in the capital of the Czech Republic is slowly but surely becoming a luxury. Year-on-year, property prices in Prague have increased by nearly 20%, making them the highest in all of Central and Eastern Europe. In 2016, the average selling price of a new, highly sought-after two-room apartment (2+kk) slightly exceeded CZK 70,000 per square meter. And prices continue to rise. The reasons include accessible mortgage loans, a strong national economy, and above all, high demand combined with limited supply. Acquiring property in Prague is currently one of the best investment opportunities on the Czech market. If you need advice on how to set the right selling price or ensure you are buying advantageously, our team of court-appointed experts and property valuers at PosudekPraha will be happy to assist.
Record Demand for Prague Real Estate
The record demand for Prague properties has also boosted sales for developers. In 2016, they sold apartments worth more than CZK 30 billion. Forecasts for the following year are more cautious, mainly due to a shortage of building permits. For comparison, the capital of Austria approved six times more residential construction projects in Q1 2017 than Prague.
When it comes to older apartments, in some districts—such as Prague 3, parts of Prague 2, and Prague 10—the prices of older flats are comparable to, or in exceptional cases even higher than, those of new developments. Location plays a crucial role, even within individual neighborhoods (distance to the metro, proximity to parks, street noise levels, and access to shops and public amenities).
The factors mentioned above, along with expert opinions, indicate that property prices in Prague will continue to grow. Administrative inefficiency also plays a role, as the approval process for new developments remains sluggish—almost across the entire Czech Republic.
There is no region in the country where average property prices have not increased year-on-year. After Prague, the most expensive properties are found in the South Moravian and Hradec Králové regions (in Brno, about 60% of Prague prices; in Hradec Králové, roughly 45%). On the other hand, extreme cases include northern Bohemian towns such as Chrastava, Krupka, or the Chanov housing estate in Most, where apartments of similar size and layout reach less than 1% of the value of comparable properties in Prague.