The latest information from the HB Index shows that Prague real estate prices continued to shoot up in Q4 2016. Indications are that it will continue into 2017.

Flat / Apartment Prices

Apartment and flat prices climbed 3.9% in Q4 2016 meaning the year-over-year reached 11%.

Petr Němeček, director of Hypoteční banka, made the following comments (translation ours): “Nationwide price the growth was driven primarily by apartments in Prague, Brno, Olomouc and in the region around Prague, where housing prices also increased. It is worth noting that the prices of older prefabricated dwellings grew more than brick. The market is growing mainly among those interested in apartments for families (3 bedrooms, 3 + 1). This interest peaked in the last quarter, as sales of apartments in new buildings. A large part of new housing is bought purely for investment. In Prague, it is estimated to be up to 30%.”

House Prices

Single family houses had the highest price growth of the last two years. However, it was behind the increase in flat prices. Prices increased by 1.9% in the quarter which made for a year-over-year increase of 4.7%.

Petr Němeček indicated there was strong interest in houses which are suitable for reconstruction. Preferred are those in existing residential areas of the larger cities such as Prague, Brno and Olomouc which have good public transport connections and access to amenities.

Land Prices

Land prices continued their strong march upwards with a 4.2% increase on the quarter. That makes a year-over-year increase of 10.7%.

2017 projection including Brno, Olomouc and Prague real estate

The offical HB Index press release said that “Current developments suggest that the boom will continue.” There was no explanation on this statement. We can only speculate that this was taken from data they had received since the end of December 2016.



Interested in Prague real estate because you are looking at investing in the city? Drop me an email: nathan@czechpoint101.com for a free consultation.