How much does it cost to buy an apartment in the Czech Republic's largest cities?

Real estate prices continue to rise in the Czech Republic. The good news is the smallest increase for buying an apartment was in Prague, but the capital is still the most expensive per square meter out of any major Czech city.

Real estate site Fermakleri.cz compared prices of flats in the eight largest Czech cities out of nine – Prague, Brno, Ostrava, Plzeň, Olomouc, České Budějovice, Hradec Králové, and Ústí nad Labem. Data for Liberec was not available.

The biggest jump in the third quarter was in Ústí nad Labem in the north of Bohemia. Flat prices there increased 53.13 percent compared to the same period last year, and 11.13 percent compared to the previous quarter. The average price was the lowest of the ranked cities, at CZK 34,803 per square meter.

Prague, on the other hand, saw a year-on-year increase of just 14.07 percent, and a rise of 3.55 percent compared to the previous quarter. The average price to purchase a flat was CZK 117,274 per sqm.

“The supply of real estate is very low in the long term, which is still pushing prices up,” he added.

He also cautioned that prices could rise further due to inflation. Investors are continuing to buy flats as a hedge against inflation, which is creating more pressure on real estate prices. Boruta added that possible new rules to make construction easier will not have a quick impact on reducing prices.

Following Ústí nad Labem, the second-largest year-on-year increase was in Ostrava, in the Moravia-Silesia region. Prices there increased 44.91 percent compared to the same time last year, and 7.81 percent quarter-on-quarter. The average price reached CZK 43.764 per sqm, the second-lowest in the Czech Republic.

Boruta said there was potential for higher year-on-year price growth in Ostrava than in Prague because to Ostrava rent prices have reached 80 percent of rent prices in the capital.

The next two cities in terms of growth in prices were Hradec Králové, up 31.5 percent on the year to reach CZK 70,957 per sqm, and České Budějovice, up by 30.4 percent to CZK 64,569 per sqm.

After Prague, the city lowest year-on-year increase was Plzeň, which saw prices rise by 22.3 percent to reach CZK 62,215 per sqm. Compated to other Czech cites, prices were fifth highest.

The Czech Republic's second-most expensive flats were in Brno, South Moravia, with an average price of CZK 94,645 per square meter. The second-largest city in the Czech Republic has seen high demand for flats due to its growth as a center for technology and innovation. This was followed by Hradec Králové (CZK 70,957) and České Budějovice (CZK 64,569).

The relatively significant growth in apartment prices in large cities is also confirmed by data from the consultancy Deloitte. Their survey for the second quarter of 2021 showed prices in Prague and regional cities rising by an average of 19.6 percent year-on-year to CZK 80,100 per square meter. This was the highest growth rate since 2015. Since the end of 2015, prices in the Czech Republic have increased by an average of almost 92 percent.

Source: Fermakleri.cz