Real estate prices in Prague and regional centers grow in spite of the “Corona crisis”
Real estate in the Czech Republic rightly remains a reliable investment. According to the analysis of the reputable consulting company “Deloitte”, from 2014 to the present day, the average increase of property prices in the Czech Republic was 84%, and in 2020 more than 10%.
The past year was rather difficult for many sectors of the economy. Many analysts predicted a recession on the real estate market. However, this did not happen, but on the contrary, we can observe a stable increase of prices per square meter on average throughout the Czech Republic. It also should be noted that for today the Czech Republic ranks the 5thplace of real estate price growth among all EU countries according to Eurostat.
In 2020, the highest price growth was recorded in Liberec – by more than 30%, the second place was rightfully taken by Ustí nad Labem with an indicator of 28.8%. In Brno, prices increased by 22.9%, and in the traditionally most expensive Prague, the increase of the prices of real estate was 10.4%. In Karlovy Vary, on the contrary, property prices decreased by an average of 7.4%.
The steady growth of real estate prices in the Czech Republic continues despite the pandemic and there is an explanation of this. Due to the high demand for property in Prague and its limited supply, the prices of new apartments in the Czech Republic have increased almost twice over the past 7 years. It is worth mentioning that the growth rate of prices for the new apartments has slowed down a bit recently, but, obviously, the drop in real estate prices is not expected in the near future. There is a solid reason to suppose that the current trend of stable reality price growth will continue, and investments in real estate remain as reliable in the future as they are now.
