Apartment prices and family houses in the Czech Republic grew rapidly in the second quarter of 2021. According to those published today that Eurostatu year-on-year, they rose by an average of 14.5%, the third fastest growth in the European Union.
“Not only are flats in the Czech Republic now the most expensive in history, but at the same time their price is growing the fastest year-on-year. Their prices are now almost three quarters higher than in 2015, “says Petr Dufek, an analyst at ČSOB.
Prices grew faster than in the Czech Republic housing in the second quarter of 2021 in Estonia (16.1%) and Denmark (15.6%) and Lithuania (12%). On the contrary, they decreased year-on-year only in Cyprus (-4.9%). The EU average was 7.3%. Neighboring Germany reports growth of 10.9%, Poland of 8.3%, Austria of 11.7% and Slovakia of 4.7%.
When we compare the first and second quarters of 2021, residential property prices in the Czech Republic rose by 3.9%, which was the fourth fastest growth in the EU. The EU average is 2.7%.
The availability of one’s own home is now deteriorating due to rising real estate prices as well as rising interest rates on mortgages. This increases the attractiveness of rental housing. This is especially true for large cities, where the availability of one’s own housing is the worst and, on the contrary, the offer of rental apartments is large.
For example, mortgage broker Golem Finance countedthat in Prague, where the availability of own housing is by far the worst in the Czech Republic, the acquisition of an average apartment requires about 11.5 annual net income of the average household. In contrast, in the Ústí nad Labem region, 3.6 such revenues are enough.
Availability of own housing: by region
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Jiří Hovorka
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