In the Czech Republic, real estate is becoming cheaper than ever before. In the first quarter of this year, the prices of new apartments in Prague fell by six percent year-on-year, which is the most significant drop since at least 2009, when the CZSO publishes its relevant statistics. These are realized prices of apartments in new buildings, i.e. the prices at which the transaction actually takes place.
Realized prices of older apartments in Prague continued to rise in the first quarter of this year – unlike apartments in new buildings. However, in a quarter-on-quarter perspective, the prices of older apartments were also falling, and most prominently at least since 2008, namely by 3.4 percent.
It follows from the data that the dynamics of the decline in real estate prices in Prague exceeds the speed of their decline at a time when the effects of the global financial crisis were manifesting in the Czech Republic, which had a very negative impact on the real estate market worldwide. At that time, real estate prices also fell in the Czech Republic, although in its capital the declines were weaker than they are now.
According to new data from the CZSO, the decline in real estate prices also continued in the second quarter of this year, when even the prices of apartments offered for sale were already falling, nationwide. They decreased by 0.7 percent year-on-year. This is their first decline since the first quarter of 2012.
Zpublished figures show that the Czech real estate market is going through an unprecedented downturn. The drop even in the offer prices represents a development that the real estate market in the country has not remembered for more than ten years. The decline in real estate prices reflects the decline in the purchasing power of the population, caused mainly by the highest inflation in the last thirty years or so, as well as high mortgage interest rates, which are the highest since the beginning of the millennium.
Mortgages will remain at current high price levels or close to them until at least the first quarter of next year, which will further suppress the demand for real estate.
Special Real Estate Club
Realitní Club is a multi-platform project of the newstream.cz server dedicated to real estate, aimed at the B2B and B2C segment. It has three basic parts – web, print and event with a strong focus on social networks. The Realitní Club’s special page was the first to launch. The special is divided into four categories that deal with key areas of the real estate market in a “deep dive” manner.
Brownfields: the vision and future of undeveloped areas, especially in big cities; Commercial real estate: offices, coworking; New construction: development, rental housing, cooperative housing, mortgages; Reality and politics: how municipalities and the highest levels of central politics participate in construction.
They will be included conversations with developers, politicians, architects and designers.
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2023-07-23 10:26:00
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