Apartment prices in Czechia fell in the first quarter of 2023

The first quarter of this year witnessed a 1.2 percent quarter-on-quarter decrease in apartment prices across Czechia, with the average price per square meter reaching CZK 92,200. Not all regions, though, saw a drop.

An analysis by financial consulting company Deloitte attributes the decline to diminished demand resulting from inflation, mortgage rate growth, and increased real estate costs due to higher energy prices and construction expenses. Despite the downturn, apartments remain 70 percent more expensive compared to pre-pandemic levels.

The Liberec Region saw the highest average decline of 15.6 percent in apartment prices compared to the fourth quarter of 2022. The Ostrava Region experienced a 12.6 percent drop, followed by the Pardubice Region with an 11.2 percent decrease.

The exceptions to this trend were the Ústí nad Labem Region, where apartment prices rose by an average of 4.4 percent, and the Zlín Region, which witnessed a 4.8 percent increase.

In Prague, prices remained relatively stagnant, with a marginal increase of 0.2 percent to reach CZK 116,800 per square meter.

However, price variations were evident across different parts of the city. Prague 8 saw a 5.5 percent increase to CZK 127,300, Prague 3 recorded a 3.8 percent rise to CZK 120,800, and Prague 9 experienced a 2.8 percent growth to CZK 109,700. In contrast, the city center witnessed significant price declines for apartments, with Prague 1 experiencing an 18 percent drop to CZK 164,200 and Prague 2 seeing a 12 percent decrease to CZK 150,200.

"In a year-on-year comparison, apartment sales in the Czech Republic declined by 9.5 percent, specifically from 6,046 to 5,471 units. However, the decline in the number of apartments sold in Prague was more moderate," Petr Hána, a real estate market expert at Deloitte, said according to ČTK.

During the first quarter of 2023, Prague accounted for almost 64 percent of all apartment sales, while Brno represented 10 percent, and the remaining units were distributed among Pilsen and other regional cities. Of the flats sold, some 2,692 were in new development projects, while 1,605 apartments sold were in paneláks, and 1,174 units were in brick houses.

Deloitte, a multinational company specializing in tax, audit, and corporate risk consulting, was established in London in 1845. With over 244,000 employees worldwide, the company generated sales of USD 59.3 billion dollars last year.