Lower mortgage rates have increased demand for real estate, leading to price increases across the country. Deloitte's real estate index shows that the growth is due to a combination of lower interest rates and improved economic conditions.

Prague remains the most expensive city.

In Prague, real estate prices rose the most in Prague 1 and Prague 8, where prices increased by 10% and 5%, respectively. The average price of vacant apartments in the capital has more than doubled in the last 10 years. Experts expect further price growth of up to 5% per year.

Average prices per square meter in Prague (Q1 2024):

• Prague 1: CZK 469,000
• Prague 2: CZK 459,000
• Prague 3: CZK 416,000
• Prague 4: CZK 364,000
• Prague 5: CZK 392,000
• Prague 6: CZK 382,000
• Prague 7: CZK 409,000
• Prague 8: CZK 409,000
• Prague 9: CZK 377,000
• Prague 10: CZK 377,000

An analysis by Knight Frank shows that higher prices are primarily driven by high demand for smaller apartments.

Rents are also rising.

Rents in Prague increased by 2% year-on-year for 1+1 apartments and by 8% for 2+kk apartments. The average rent for smaller apartments exceeded CZK 14,000 per month, while rents for 3+kk apartments reached up to CZK 30,000 per month. In Brno, rents for 1+1 apartments rose by 10%.

Buy or rent?

According to Michal Hrbatý, director of UlovDomov.cz, owning a property is still more expensive than renting. However, with interest rates falling from 7% to 4.75%, buying a property could become more attractive than renting in the future.

Lukáš Blažek from Ronda Invest expects that the real estate market will continue to be influenced by interest rates and material prices.

The housing situation in Czechia has been difficult for a long time, especially in Prague, where the average price of an apartment is 15 times the average annual salary. According to studies, Czechia is the second most expensive country in Europe for buying real estate.