Prague resi prices still below their 2022 peak

Published: 02. 05. 2024

The average price paid for an apartment in the Czech Republic is CZK 71,000 per sqm. That’s CZK 6,000 more than a year ago, but CZK 6,000 less than it was in Q1 2022. The data comes from real estate agent Iztok Toplak, who monitors the sales contracts of RE/MAX G8 Reality. They show that prices are growing quickest on Prague flats of up to 40 sqm, and on apartments of up to 60 sqm on Prague’s outskirts. On average, the Prague flats his company is involved in are selling for CZK 114,000 per sqm. That’s 11,000 sqm more than Q1 2023, but it’s also CZK 11,000 less than two years ago. As the charts make clear, the same dynamic is at work in all the regional cities.

Tracking average price paid in Prague by size of flat

Toplak has always insisted that tracking sales contracts has solid predictive value. Weeks or months can pass before the deals signed in a real estate agency are written into the land registry, which is what other price monitoring systems rely on. It’s a different dynamic than with new residential projects, of course. Developers set their prices based on what they think customers are willing to pay for a new flat, but they’re under pressure to sell everything. Different forces and timelines are at work when it comes to buyers and sellers in the secondary market. In Q1 2022, when the market peaked, the Czech National Bank was in the process of an aggressive increase in interest rates. In September 2021, the 2-week repo rate was still just 0.75%. By February 2022, it had leaped to 4.50% and prices began falling.

 

Average prices based on sale contracts by Prague district, based on deal mediated by RE/MAX G8 Reality

 

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