Real estate prices in Prague recorded a significant increase

Sales prices of flats, but especially family houses in the Czech Republic, recorded a significant increase in the third quarter. Real estate market data pointed this out. According to experts, however, the prices are already approaching the limits of the financial possibilities of those interested, especially in Prague. Mortgage prices are expected to push many people to shift their focus to rental housing. Average rents have already stopped the decline and increased slightly year-on-year. "In Prague, the average flat is sold for almost CZK 113,000 (EUR 4,403.40) per square meter (m2), but the market has obviously hit its ceiling and demand in Prague is weakening in favor of other regions," said monitoring reports Bezrealitky.cz and Maxima Reality, to which the novinky.cz server referred. Prices are also rising for family homes. In Prague, the price of these properties increased to CZK 106,500 / m2 in the third quarter, and demand increased by 6 percent year on year. A new record was achieved in the prices of flats in Brno, where flats were sold on average for more than CZK 80,000 / m2. This is how much an apartment in Prague cost at the beginning of 2019. Flats in Central Bohemian cities reached over CZK 70,000 / m2 for the first time, which represents a year-on-year growth of 21.2 percent. The reason is mainly the high demand of households that want to leave Prague and exchange longer travel time for a lower real estate price. This also applies to family houses further from the city, which still have a favorable price level. These are currently sold in the Central Bohemian Region for 60,000 / m2. There was a significant change in rents, where demand doubled in the third quarter. Rental prices stopped falling and rose slightly. In Prague, rents have stabilized at CZK 272 per leased m2, which represents an increase of 3 percent compared to the previous quarter. In Brno, they increased by 4 percent to CZK 247 / m2. According to the head of the Bezrealitky.cz server, Henryk Meyer, the end of the year will be marked by a rapidly rising rental price in Prague and Brno. Rental housing prices will drive up not only less affordable mortgages, but also inflation and rising energy prices.