Saturday, 15 March 2025
Real estate prices in the Czech Republic increased at the end of 2024, with apartments experiencing the highest growth. According to data from the ČSOB Housing Index, apartment prices rose by seven percent year-on-year in the fourth quarter. Family home prices increased by 4.8 percent, while land prices climbed by 6.4 percent compared to the last quarter of 2023. Prices also rose on a quarterly basis, with apartments seeing the largest increase of 3.4 percent, houses rising by 1.9 percent, and land by 1.4 percent compared to the third quarter.
Martin Vašek, CEO of ČSOB Hypoteční banka, stated that the Czech real estate market returned to growth in 2024, with a notable rise in demand for both newly built and older apartments in the fourth quarter. He noted that the average time required to sell an apartment has decreased to 3.8 months, reflecting stronger market activity.
The highest quarterly increase in apartment prices was recorded in the Moravian-Silesian Region, where prices rose by 4.6 percent. The Ústí nad Labem and Hradec Králové regions also saw an increase of four percent. Apartment prices in Central Bohemia and Prague grew by slightly less than four percent. Vašek attributed the rise in apartment prices to strong demand for homeownership, combined with a limited supply of available properties, which has driven price growth.
The index also indicated that the supply of older apartments declined, while new apartments from development projects have begun to re-enter the market. There was above-average interest in smaller apartments of up to 45 square meters. Rental prices have also increased, with an average year-on-year growth of 15 percent, the highest in the Olomouc Region.
Demand for houses remained lower than for apartments, and sales activity was still below pre-pandemic levels. The index noted that house sales were particularly slow in areas affected by September floods, as buyers wait for infrastructure repairs. The highest concentration of new house construction was in the Central Bohemian Region and near Brno, with construction activity supported by slowing growth in building costs.
Land prices continued their steady rise, as demand consistently exceeded supply. The index pointed to outdated zoning plans and limited utility capacity as factors constraining land availability, leading buyers to search for plots further from major cities.
Source: ČSOB Housing Index and CTK
