Czech property prices in 2015 (including Prague, Brno and Hradec Kralove) grew strongly

Czech Point 101 February 8, 2016 @ 7:45PM

Czech property prices moved up at a strong rate in 2015, according to the HB Index, a reliable source of housing prices in Czech Republic.

This growth in Czech property prices was across all segments of the market including flats/apartments, houses and land.

Czech property prices 2015 – Flats / Apartments

The strongest area of property price growth was in flats or apartments. Overall the prices increased 6.3% for 2015. (As a not so humble pat on the back we had predicted a 6% growth in Czech property prices for 2015).

Below is a chart showing the steepening angle of price increases.

Czech property prices for flats in 2015

Petr Němeček, CEO of Hypoteční banka, added the following comments:

The rise in prices of residential units in the last quarter of last year increased slightly. Compared to the previous quarter, it was dragged down especially by the regional cities. Absolutely the biggest price increases were achieved in Hradec Kralove, Karlovy Vary, Usti and South Moravia. The prices of older brick apartments grew more than the panel apartments. The greatest interest there was in the market for small flats in Prague and regional cities. Sales in new buildings grew especially in Prague and Brno, where the annual increase in prices ranged from 6-10%. Nationwide the prices of residential units for 2015 increased 6.3 pcb. In Prague, the share of purchases in a new dwelling which were for investment was 25%. 2015 was a record for developers. Over 7,000 apartments were sold in Prague.

Czech property prices 2015 – Houses

House prices moved ahead solidly as well in 2015 at 2.8% but not as strongly as apartments.

Below is a chart showing the house price increases for 2015.

Czech property prices 2015 - houses

Czech property prices 2015 – Land

Land continued it’s slow but sure price increase. It was the only property asset class that continued to appreciate right through the recession.

Below is the chart for land price increases in 2015.

Czech property prices in 2015 - land

Czech property prices 2016

What can we expect in 2016 for Czech property prices? We are expecting more of the same although perhaps a little bit less growth as 2015 as there was a lot of pent-up demand satisfied during this year.

If you would like to take advantage of the rising property prices drop me an email: nathan@czechpoint101.com for a free consulation.


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