According to Bezrealitky.cz, older flats rose in price by an average of 13.4 percent in the first half of the year to 66,292 crowns per square meter. However, the growth rate of house prices slowed down in the second quarter; compared to the end of the first quarter, prices of older apartments in the Czech Republic rose by only 1.1 percent on average.
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They increased the most quarter-on-quarter in the Ústí nad Labem Region (by 18.3 percent) and in the Vysočina Region (by 15.2 percent), but in the Liberec Region they fell by 8.1 percent, and in Karlovy Vary (by 3.4 percent) and South Moravian Region (by 1.8 percent). In Prague and the Central Bohemian Region, the prices of older flats rose only slightly.
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Regionally, at the end of June, Prague was the most expensive (CZK 94,619 / m2), which has been facing a housing crisis in recent years. On the contrary, the cheapest was the Ústí nad Labem region (CZK 21,392 / m2).
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Rents fell in Prague
Rents for the whole of the Czech Republic rose by an average of 1.6 percent to 248 crowns per square meter per month. In the most expensive Prague it was 293 crowns, in the cheapest Ústí nad Labem region 145 crowns.
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The level of rents in Prague fell significantly both quarter-on-quarter, by almost six percent, and year-on-year, by 3.5 percent.
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“This is a consequence of the outflow of tourists who were looking for short-term rentals in the metropolis through platforms such as Airbnb. After them, due to coronavirus, border closures and drastic restrictions on air traffic, the ground “collapsed”. Landlords of flats, especially in the historical center of Prague, in Prague 1 and Prague 2, had to look for replacement tenants and go down with the price in order to find some at all, “reminded economist Lukáš Kovanda.
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He also pointed out that in the very center of Prague, especially in the districts of Staré Město, Josefov, Malá Strana, Nové Město and partly Vinohrady, the decline in rents was even more pronounced, in some places amounting to tens of percent quarter on quarter and year on year.
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See you in the fall
According to Kovanda, the demand for real estate is still helped by government support programs such as kurarbeit, moratoriums on loan repayments or a program of advantageous loans for companies.
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In addition, mortgages became slightly cheaper. “But autumn will be decisive. This will have the effect of terminating most government support programs, which will increase the unemployment rate and, hand in hand with it, the share of problem and outstanding mortgages, “added the economist.
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