Real estate markets in some EU countries face a number of problems, and as a consequence a decrease in the cost of housing. For example, according to the financial consulting company Deloitte, you can already buy an apartment in the Czech Republic 1.2% cheaper than in the previous quarter. Read the article for details.

Prices of apartments in the Czech Republic decreased by 1.2% in the first quarter of this year compared to the previous quarter. The average price per square metre was CZK 92,200. This decline can be attributed to a decline in demand caused by inflation, higher mortgage rates and higher real estate prices due to high electricity and construction costs. However, despite the decline, apartments remain 70% more expensive than they were in the pre-pandemic period.

The Czech Republic is preparing a new law on construction—it should help cope with the decline in housing construction

Among the analysed regions, the most significant average fall in apartment prices was observed in Liberec, where prices fell by 15.6% compared to the last quarter of 2022. Prices in Ostrava fell by 12.6%, while in Pardubice prices fell by 11.2%.

But there are regions where prices rose. For example, Usti nad Labem witnessed an average price increase of 4.4%, and Zlin saw an increase of almost 5%. In Prague, total prices remained relatively stable, with a slight increase of 0.2%. However, price fluctuations varied across the capital. However, prices in the city center have declined significantly: by 18% in Prague 1 and 12% in Prague 2.

Petr Hana, an expert on the real estate market in Deloitte, said: "Sales of apartments in the Czech Republic decreased by 9.5% compared to the previous year, dropping from 6,046 to 5,471 units. However, the decline in the number of apartments sold in Prague was relatively less serious».

In the first quarter of 2023, approximately 64% of all apartments sold were in Prague, while 10% in Brno, and the remaining sales were distributed between Plzen and other regional cities. More than half of the apartments sold were located in new buildings, with 1605 units sold in prefabricated buildings and 1174 units in brick buildings.