The stats from Q2 of 2017 on Czechia property prices from the HB Index show a continued escalation of housing prices. This was in spite of efforts by the Czech National Bank to slow down Czechia property prices.
Flat / Apartment Prices
The price for apartments overall grew by 3.2% over 2017 Q1. That put the year-over-year gains at 13%. The largest price gains were recorded in Southern Moravia (Brno and area), Central Bohemia (the area surrounding Prague) and Pilsen. The smallest increase in prices were in the Ústí nad Labem and Olomouc areas. As in Q1 the greatest interest was in apartments sized 56 to 75 m2.
House Prices
House prices accelerated at a rate of 2.1% with a year-over-year growth of 6.4%. The strongest demand continued to be in the vicinity of the larger cities (Prague, Brno, Ostrava, Plzen, etc.). Those in a run-down state saw particular attention with the buyers intending to conduct gradual reconstruction into the state desired by the owners.
Land Prices
Land prices grew at their slowest rates since 2015 with a 1% growth over Q1 2017. Over the last 5 years land prices have appreciated at an average year-over-year pace of 5% which has made it an excellent investment. As with houses the chief interest is in the vicinity of the larger cities (Prague, Brno, Ostrava, Plzen, etc.)
Why do Czech property prices keep growing
The main reason for continued growth is the high demand coupled with minimal new product reaching the market. With permissions for building in some cases taking up to 10 years from purchase of the building land developers have not been able to keep ahead of the increasing demand.
Interested in buying a property in Czechia yourself? Drop me an email: nathan@czechpoint101.com and I’ll do whatever is possible to assist you.
Updated/Aktualizováno: September 20, 2017,
