Apartment prices up in Czech Republic for first time in years

Photo: FKLV

Values of apartments increased 0.5 per cent in the second quarter of 2013, according to the new data released by the Czech Statistical Office. Prague led the way, with a year-on-year climb of 3 per cent, suggesting that the country’s real estate market is beginning to recover.

Indeed, positive signs were first glimpsed in 2012, when the Czech National Bank figures showed that sales prices of apartments dropped 1.8 per cent in the fourth quarter of 2012 year-on-year, a significant slowdown from the 12.4 per cent decline recorded in 2009.

This is the first time since the financial crisis than an increase in values has been recorded.

Czech Statistical Office Chief Analyst, Drahomíra Dubská, told Radio Praha that the capital’s growth, spurred by the improving economy, could spark some positivity:

“We should take note of the fact that trends registered in Prague usually spread to other regions of the country as well,” said Drahomíra. “That’s our experience from the last decade or so when Prague was the leader in residential property prices.”

Others, though, are more sceptical. Indeed, outside Prague, real estate values continue to slump.

Bla┼żena Polahárová, owner Happy House Rentals, based in Prague, told the radio: “We did not experience any rise in selling prices over the last years. We can only say that our company is now selling more houses and apartments than in the same period last year. I only know the market in Prague, but I don’t expect any increase in prices this year, either.”