The pandemic hit many markets, but the real estate industry was only minimally impacted. The prices for apartments, land, and houses continue to rise, iDnes.cz reports.
In the first 4 months of 2020, prices for flats in Prague and surrounding cities rose approximately by 13% year on year basis, making it the highest growth rate in two years, Expats.cz reports. That brought the prices up to about 65,400 CZK per sqm. Predictably so, the most expensive apartments are located in Prague 1 (159,800 CZK per sqm) and the cheapest can be found in Prague 10 (77,700 CZK per sqm).
“The growth rate of house prices slowed down in the second quarter, although flats rose in price in all regions except Karlovy Vary, where the prices stagnated. Smaller flats in the 2 + 1 and 2 + KK categories became the most expensive,” said Petr Němeček, Director of the Real Estate Department of Hypoteční banka, as reported by iDnes.cz.
Yet, according to Němeček, the growth is expected to slow down in the upcoming years.
“Real estate could become cheaper in the first half of 2021, but we expect a decline only in lower percentage units. Compared to recent years, a more significant decline in demand for investment is expected,” said Němeček.