Prague and Brno property prices surged year-over-year. In fact, Czech property prices in general increased 10.7% year over year to the end of 2017 Q2.
Below is a breakdown of the areas of Czech Republic and what the prices did year-over-year compared to Q2 2016.
Increases in property prices based on region in Czech Republic
| City | Price (CZK/m2) | Annual increase % |
|---|---|---|
| Prague | 65,700 | 9.0 |
| Brno | 50,700 | 10.0 |
| Central Bohemia | 39,500 | 18.3 |
| Hradec Králové | 36,900 | 12.8 |
| Pardubice | 35,500 | 12.0 |
| Plzeň (Pilsen) | 35,100 | 3.8 |
| České Budějovice | 33,700 | 20.8 |
| Olomouc | 33,600 | 0.6 |
| Jihlava | 29,000 | 21.3 |
| Zlin | 28,900 | 2.5 |
| Liberec | 28,500 | 9.2 |
| Karlovy Vary | 22,700 | -3.8 |
| Ostrava | 19,600 | 13.3 |
| Usti nad Labem | 11,800 | 3.5 |
Source: Stavebni Forum
Increases in property prices in areas of Prague
| Area | Price (CZK/m2) | Annual increase % |
|---|---|---|
| Prague 1 | 122,200 | 13.9 |
| Prague 2 | 84,900 | 22.5 |
| Prague 7 | 79,600 | 16.5 |
| Prague 3 | 73,200 | 13.8 |
| Prague 6 | 71,000 | 10.4 |
| Prague 8 | 70,900 | 20.8 |
| Prague 5 | 66,800 | 3.7 |
| Prague 10 | 60,500 | 6.9 |
| Prague 4 | 60,300 | 11.9 |
| Prague 9 | 56,100 | 6.9 |
Source: Stavebni Forum
What can we expect Prague and Brno property prices to do going forward?
There continues to be a shortage of newly built apartments in both Prague and Brno. This continues to drive up property prices as newly released projects are being sold out extremely quickly. Projects are being sold for units that won’t even be completed for another 2 to 3 years. During 2017 we don’t expect this situation for change as projects are very slow being approved.
Measures that the Czech National Bank have taken to slow down the housing market including lower loan to values permitted (particularly for investment properties) have failed to slow things down.
We expect the strong appreciation of properties to continue well into 2018 although it is quite likely we will have a mid-boom slowdown. This is typical for the appreciation part of a real estate cycle.
Interested in how to profit from the upcoming trends? Drop me an email: nathan@czechpoint101.com.
Updated/Aktualizováno: October 2, 2017,
