Prices for older flats rising rapidly

With new flats out of reach of most buyers, demand has risen for older flats

New flats in the Czech Republic have risen out of reach for many people, and that has put pressure on the prices of already existing flats, according to data from real estate server Bezrealitky.cz.

Prague has the most expensive older real estate, while the Ústí nad Labem has the cheapest.

“Unfortunately, we cannot expect the situation to improve significantly this year. Price growth will continue unambiguously, even in some areas at a much higher pace than last year,” Hendrik Meyer, executive director of Bezrealitka, said in a press release.

“Real estate owners will continue to benefit from the current situation. Finding a candidate right now is a matter of several weeks. Some 98 percent of real estate in the Czech Republic is sold within three months. Conversely, those who are interested in housing will find it even more complicated this year, especially given the lack of real estate for rent in the most demanding areas,” he added.

Prices in 2018 for older flats in the Czech Republic grew by an average of 32 percent year-on-year to Kč 52,997 per square meter.

At the end of the year, flats in Prague were at an average of Kč 80,361 per meter, which is about 75 percent of the Prague price for new construction and 60 percent more year-on-year. The second most expensive were flats in South Moravia and Brno at Kč 49,961 per square meter, followed by apartments in Central Bohemia with an average price of Kč 40,053 per square meter.

According to separate data by Trigema, Skanska Reality and Central Group, prices of new flats in Prague rose by almost a fifth to Kč 101 091 per square meter last year.

In the case of houses, prices rose 8 percent, according to Bezrealitky.cz. The average price per square meter reached Kč 29,529. Prices grew mainly in Prague, up 36 percent year-on-year with the average house selling for Kč 68,647 per square meter. The second most expensive houses per square meter were sold in Central Bohemia at Kč 35,644, in Brno and South Moravia at Kč 27,818, and in the Plzeň region at Kč 25,713.

High rates of price increase were seen in Hradec Králové, Pardubice and Vysočina regions.

There is still room for price increases, both in regions where flats and houses remain below the national average, and in places where extreme demand can be expected, especially in the wider center of Prague, in Central Bohemian municipalities that border with the capital, in Brno and in South Moravian towns with short driving times to Brno's center, according to Bezrealitky.cz.

Most of the necessary measures for change will take years. This includes, for example, changes to the building law to ease the start of construction, and further development of infrastructure to expanding the supply of suitable real estate in critical areas.

Developers have long criticized the process for getting building permits n the Czech Republic, which can make the time from design to completion of a project stretch out to several years or even a decade in some cases.

Related articles

Facebook comments

Pražské Benátky

Enjoy Prague from a different view

KUKBURG - Farm to table

Our meat and products straight to your table

Prague Daily Monitor

Prague’s # 1 source for Czech news in English - Sign up for...

T.G.I. Friday's (Příkopy)

A true legend in the restaurant industry - TGI Friday's

Canadian Medical – Hadovka

Nothing is more important than your health!

AGORA

Greek bistro & food market

World Fusion Writing and...

Writing and Editing service in Prague

Levain

Destination for foodlovers


PragueMonitor.com

Prague’s # 1 source for Czech news in English…


PragueConnect.cz

Expat and Czech Business Professional Network


Tschech.News

German Language Info Service


Brno Daily

New English-language online magazine for Brno...


Czech Mu

捷 目 is the first-ever Chinese language online newspaper...