Until recently, a simple rule applied: a larger apartment meant higher value, and real estate in a housing estate was primarily a matter of location and price per square meter. Today, the situation is more complex.

In the housing market, the gap between what sellers want to get for an apartment and what buyers are actually willing to pay for it is becoming increasingly apparent. And large prefab apartments are among the segments where this gap is becoming more and more visible.

This doesn’t mean that prefabricated buildings have ceased to be attractive. Rather, the way buyers think about them is changing.

Square meters aren’t the whole story anymore

At a quick glance at the real estate market, a large apartment may seem like a safe choice. It has more space, may be suitable for a family, and in the past, one could expect it to appreciate significantly in value.

However, a larger square footage does not automatically mean greater interest.

With large apartments, the total purchase price rises very quickly. An apartment with an area of over 80 square meters may have an attractive price per square meter, but the final amount may be too high for some households. Buyers then begin to wonder whether they could get a different type of property for a similar price.

And this is precisely where the market begins to split.

In some areas, the price of a large apartment in a prefabricated building can buy a smaller but newer apartment. Elsewhere, a single-family home on the outskirts of town may be a viable alternative. For an investor, a smaller unit may be more attractive, as it’s easier to rent out and appeals to a wider range of potential tenants.

Paradoxically, a large apartment may thus be less liquid than a smaller property.

Today, buyers also factor in what comes after signing the contract

One of the most significant shifts in recent years has been a change in perspective regarding operating costs.

When making a decision, it is no longer enough to know how much the apartment itself costs. Buyers also want to know how much it will cost to maintain, what repairs the building will need, and how high the regular payments will be.

For older prefabricated apartment buildings, factors such as energy efficiency, the condition of common areas, elevators, the facade, the roof, or planned renovations can play a role.

All of this ultimately affects the economics of ownership.

An apartment that appears cheaper than a new construction at first glance may therefore not automatically be a better deal. If it entails higher recurring costs or expected investments in the building, the buyer will begin to view the price difference differently.

And the higher the purchase price of the apartment itself, the more keenly this difference is felt.

The market does not adjust the same way everywhere

One thing is important: we cannot speak of a uniform trend in apartment prices.

The real estate market is not a single, homogeneous entity. The center of a large city may behave differently than its outskirts, and a regional city may behave quite differently still. Differences also exist between new construction and older apartments, between small and large units, and between renovated and original conditions.

This is precisely why the overall market may still show growth, while a specific type of property is already beginning to lose some of its previous momentum.

This isn’t necessarily a sign of a widespread decline.

Rather, it reflects a return to a market in which buyers are more selective.

Prices must begin to reflect reality

During periods of rapid price growth, it was possible to overlook certain flaws in a property to some extent. Buyers often assumed that if they paid more today, the value of the apartment would rise even further in a few years.

Today, decision-making is more cautious.

Buyers are more motivated to compare individual offers, consider future costs, and look for alternatives. For sellers, this means a simple but important change: an asking price that’s too high may no longer lead to longer negotiations. It may mean that prospective buyers won’t even get in touch.

And if a property remains on the market for an extended period, the original price expectations may begin to crumble.

First come viewings that lead nowhere. Then come price negotiations. And finally, a more significant price adjustment may be necessary to get the listing back on buyers’ radars.

Investors have one more reason to be cautious

The situation is even more delicate when it comes to investment apartments.

An investor isn’t just buying four walls. They’re buying future income. That’s why they compare the purchase price with rent, operating costs, financing, and the expected appreciation of the property’s value.

If the price of a large apartment rises faster than the potential rent, the return on investment deteriorates.

And it is precisely at such a moment that an investor may prefer a smaller unit, which has a lower initial price and a broader pool of tenants.

This creates additional pressure on the large-apartment segment: it depends not only on households looking to buy their own homes but also on investors’ willingness to accept its economic terms.

What does this mean for future developments?

The most likely scenario may not be a dramatic market-wide price collapse.

A much more interesting period may be one in which individual segments of the market diverge increasingly.

Well-located, high-quality renovated, and energy-efficient properties may remain in high demand. Conversely, for apartments with high operating costs, poor condition, or a price that does not match their quality, there may be significantly more room for negotiation.

And that is perhaps the most important change.

The real estate market is slowly returning to a question that sometimes took a back seat during periods of rapid growth:

Is this property truly worth the price I’m asking for it?

For the seller, this is a challenge. For the buyer, on the other hand, it’s an opportunity.

Because once the price of the property itself ceases to be the main selling point, factors such as quality, location, operating costs, the condition of the property, and—above all—the true value to the person buying it begin to matter again.

Are you considering selling or buying an investment property?

We’d be happy to help you objectively determine the market price, assess your property’s potential, and recommend the most suitable strategy and timing for the sale.

Are you considering selling or investing in real estate?

Contact us. We’ll help you accurately assess the market price, the property’s potential, and the best timing.