Over the past three months, rents in the Czech Republic rose by 1.2 percent in July and by half a percent compared to June. Compared to January 2020, rental prices increased by 24 percent. For small apartments in very good condition, they increased by 5.6 percent year-on-year. However, medium and large apartments in very good condition have become more expensive in an almost similar way. On the contrary, Valuo recorded the lowest rental price increase, by 4.4 percent, for large apartments in new buildings. In Prague, rental prices rose year-on-year by 5.8 percent and in the Zlín region by 5.6 percent.
The offer of vacant apartments for rent on real estate portals decreased by an average of 11 percent year-on-year, but remains higher than in July 2022, 2019 and 2018. For example, while in Vysočina the offer fell by almost a quarter, in the South Bohemian Region there were 14 percent more available apartments for rent.
Although apartments have risen in price over the past three months, they are 1.9 percent cheaper year-on-year and seven percent lower than the peak in 2022. At the beginning of 2020, their prices were lower by 69 percent. The biggest increase in prices was recorded in July for small apartments before reconstruction, whose prices increased by 2.5 percent over the last three months. The fastest growing prices were in the Králové Hradec Králové and Pardubice regions, also by 2.5 percent. According to Valuo, the growth of prices in three months shows the revival of the real estate market in the Czech Republic.
The number of offers for apartments for sale in July fell by 14 percent year-on-year, falling below the level of 2018, according to the analysis. Nevertheless, the number of apartments offered is still 54 percent higher than in July 2021, when mortgage interest rates were below three percent and real estate prices rose by tens of percent year-on-year. The largest drop in the number of offers was in the Ústí and Moravian-Silesian regions, where it decreased by more than a fifth. On the contrary, offers in the Karlovy Vary and Liberec regions remained at the same level as in July 2023.
The price of houses is also rising
Similar to the case of apartments, it was also the case with the prices of family houses. Although they have become more expensive in the last three months, their prices have fallen by more than four percent year-on-year. Compared to the maximum prices in 2022, they are cheaper by almost 11 percent, but since January 2020 their prices have increased by almost 60 percent. However, according to Valuo, house prices vary significantly from region to region. For example, in Prague, prices fell by 0.4 percent over the last three months, while in the Pilsen Region, a growth of 3.3 percent was recorded.
The number of listings of homes for sale increased by less than four percent year-on-year. In some regions, such as the South Moravian and Moravian-Silesian Regions, Vysočina and Prague, the supply has slightly decreased compared to July 2023.