Despite speculation that recent changes such as the tightening of mortgage criteria as well as the transfer tax becoming the responsibility of the buyer would slow Czech property prices they continue their surge. This was reported by the most recent stats from the HB Index after Q1 2017.

Flat / Apartment Prices

The market price for flats grew 3% in Q1 which gave prices a 12.1% year-over-year increase. The biggest price gains were recorded in Southern Moravia (Brno), Central Bohemia (the area surrounding Prague), Prague and Pilsen. The smallest increase in prices were record in the Ústí nad Labem and Olomouc areas. The greatest interest was in apartments sized 56 to 75 m2.

House Prices

House prices increased at a slower pace with 1.2% recorded in Q1 2017 and 4.9% year-over-year. The greatest demand was for houses in the vicinity of large cities such as Prague and Brno. There was also interest in older housing with the purposed of restoration.

Land Prices

Land prices increased 2.4% on the quarter which gave it 11.9% year-over-year. Over the last 5 years prices have grown on an annual average of 5%. As with houses the greatest interest was in the vicinity of the larger cities like Prague and Brno.

Factors affecting Czech property prices

The greatest factors continuing to affect Czech property prices in 2017, especially apartments, are:

1. Lack of new supply as building permits take years to be approved and developers were caught flat-footed
2. Real wage growth (after inflation) hovering in the 3.5 to 4% range year-over-year
3. Unemployment rates under 5%
4. Mortgage interest rates holding at near record lows

Interested in how you can personally profit from increasing Czech property prices? Drop me an email nathan@czechpoint101.com.