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Everything you need to know before buying real estate is included in our The Czech Republic Property Pack
What do the latest numbers reveal about the Czech Republic’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in the Czech Republic, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Residential property prices are expected to rise by 5-10% in 2025
Residential property prices are expected to rise by 5-10% in 2025.
The economy is looking up, which means people feel more confident about buying homes. Mortgage rates are dropping, making it cheaper to borrow money for a house. This combination is encouraging more people to enter the housing market.
In the Czech Republic, there's a growing interest in buying homes, but not enough houses are being built. This shortage is a key reason why prices are climbing. When demand outpaces supply, prices naturally go up.
Investments in real estate are also on the rise. By 2025, commercial real estate investments, like logistics and rental apartments, are expected to recover. These investments are appealing because they offer rental income and can increase in value over time.
This renewed interest in commercial real estate is boosting confidence in the entire property market. Investors see potential in both commercial and residential sectors, which is a positive sign for future property values.
Overall, the limited housing supply, improving economy, and attractive investment opportunities are setting the stage for a price increase. Experts are closely watching these trends as they unfold in the Czech Republic.
Sources: Czech Real Estate Demand and Prices Set to Rise in 2025, CBRE Forecast for the Czech Republic in 2025, Global Property Guide
2) The average price of a family house in the Czech Republic is 5.4 million CZK
In 2023 and 2024, the Czech Republic's real estate market saw some big shifts.
One major change was the anticipated rise in housing prices, as highlighted by E15. They predicted that by 2025, both owner-occupied and rental properties would become more expensive. This trend might explain why the average price of a family house hit 5.4 million CZK.
Investment in commercial real estate was also on the rise, with projections suggesting it would exceed 50 billion CZK by 2025. This influx of investment, fueled by both local and international investors, likely played a role in driving up housing prices across the board.
Looking back to 2015, the average cost of a completed apartment in a family house was 3.25 million CZK. Although this was significantly lower than today's prices, factors like the Czech Republic's status as a tax haven for property owners and historically low interest rates encouraged more real estate investment, which likely contributed to the current price increase.
These dynamics have made the Czech real estate market particularly attractive, with many seeing it as a stable investment opportunity. The combination of rising prices and increased investment activity suggests a market that's both competitive and lucrative.
Sources: E15, Czech Republic Housing Policy, YouTube
We have made this infographic to give you a quick and clear snapshot of the property market in the Czech Republic. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Property prices in the Czech Republic are 120% higher than in 2015 and 50% higher than earlier periods
Property prices in the Czech Republic have skyrocketed by 120% since 2015, marking a dramatic shift in the real estate landscape.
During the pandemic, property prices surged by 25-30% from spring 2020 to winter 2021. This was largely due to a mix of low mortgage rates and a recovering economy, which fueled demand. At the same time, there was a limited supply of new housing, making it a seller's market.
Today, the demand for real estate remains strong, especially for older flats and family homes. This ongoing interest, combined with the scarcity of new properties, continues to drive prices upward. Experts predict that property prices could rise another 5-10% by 2025, affecting both owner-occupied and rental markets.
In this competitive market, potential buyers are finding it challenging to secure properties, as the availability of new housing remains tight. The trend of rising prices is not just a temporary spike but a reflection of deeper market dynamics. Economic factors and housing shortages are key players in this ongoing trend.
For those considering investing in Czech real estate, understanding these market forces is crucial. The combination of high demand and limited supply suggests that prices will continue to climb. Investors should be prepared for a competitive market where quick decisions might be necessary.
Sources: CijEurope, Rondainvest, E15
4) By 2025, Czech Republic mortgage interest rates are expected to stabilize at about 3.5%
In the Czech Republic, mortgage interest rates are on a downward trend thanks to the Czech National Bank's recent actions.
Throughout 2023 and 2024, the ČNB has been actively reducing interest rates, which has directly influenced mortgage rates. This move is setting the stage for potentially lower rates by 2025. According to Malíři, we might see mortgage interest rates drop significantly, possibly reaching an average of 3% to 4% by then.
Currently, the average commercial mortgage rate is around 5.6%, as noted by Expats.cz. However, with further expected cuts from the ČNB, economist David Marek predicts a main interest rate drop to about 4% by the end of 2024. This would pave the way for mortgage rates to stabilize around 3.5% in 2025.
Hyponamíru.cz supports this outlook, suggesting that mortgage interest rates could indeed settle at approximately 3.5% by 2025. This aligns with the ČNB's strategy and the broader economic expectations.
For potential property buyers, this means a more favorable borrowing environment. With rates potentially stabilizing at around 3.5%, home ownership could become more accessible for many.
As the ČNB continues its efforts, the real estate market in the Czech Republic is poised for a shift, making it an interesting time for those considering buying property. By 2025, the average mortgage interest rate is expected to stabilize at around 3.5%.
Sources: Malíři, Expats.cz, Hyponamíru.cz
5) Residential properties with energy-efficient certifications in the Czech Republic are expected to increase by 20% by 2025
The Czech Republic is making strides in energy-efficient building practices.
Under the updated Energy Performance of Buildings Directive, the country is setting new standards to improve energy efficiency. This directive ensures that professionals issuing energy certificates and inspecting heating and AC systems are well-trained, which is crucial for maintaining high standards.
One major goal is to construct nearly zero-energy buildings. New constructions must meet specific energy standards, such as using less primary energy annually. Achieving at least an EPC level C is essential, ensuring that new buildings are as energy-efficient as possible.
The Czech Republic also has a Long-Term Renovation Strategy to upgrade existing buildings. A rapid renovation scenario, known as the Hypothetical scenario, aims to renovate every building within 30 years, potentially reducing energy consumption by 44% by 2050.
These efforts are part of a broader initiative to increase the number of residential properties with energy-efficient certifications. By 2025, the Czech Republic is projected to see a 20% increase in such properties, making it an attractive market for eco-conscious buyers.
Sources: EPBD Implementation in the Czech Republic, Efficiency Trends in Czechia, Energy Efficiency Watch Survey
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6) Older apartments in the Czech Republic average 63,000 CZK per square meter nationwide
The average price for older apartments in the Czech Republic is 63,000 CZK per square meter.
This price reflects a combination of factors, including a growing demand for housing and a limited supply of affordable options. Many buyers are drawn to older apartments for their historical charm and affordability, which has driven up prices.
While the national average is 63,000 CZK, prices vary significantly by region. In Prague, for example, the average price for an older apartment is around 129,150 CZK per square meter, illustrating how location heavily influences property values.
These regional differences underscore the importance of location in real estate. In cities like Prague, the demand for housing is particularly high, leading to higher prices compared to other areas in the country.
For those considering buying property, understanding these dynamics is crucial. The limited supply of affordable housing options continues to be a significant factor in the market.
As a potential buyer, being aware of these trends can help you make informed decisions. The historical appeal and affordability of older apartments remain attractive, but prices are on the rise.
Sources: Ceskenoviny, Megarealty, Forbes
7) The average mortgage rate in the Czech Republic is 5.13% as of January 6, 2025
The average mortgage rate in the Czech Republic is 5.13% as of January 6, 2025.
This rate has seen a slight dip, thanks to the Swiss Life Hypoindex, which shows a decrease from 5.22% in December 2024. The drop is mainly because the three largest banks in the country decided to lower their rates at the end of 2024.
Backing this up, the Swiss Life Mortgage Index also highlights a nine-basis-point reduction in the average offer rate for loans with a loan-to-value ratio of up to 80%. This is a notable shift, especially when you consider the broader trends over the past year.
For potential buyers, this means a slightly more favorable environment if you're looking to finance a property. The actions of these major banks have made it a bit easier to manage mortgage costs, which is a welcome change for many.
It's important to keep an eye on these indices, as they provide a clear picture of the market's direction. The recent adjustments by the banks are a response to various economic factors, aiming to make home buying more accessible.
So, if you're considering purchasing property in the Czech Republic, now might be a good time to explore your options, given the current mortgage rate trends.
Sources: Swiss Life Hypoindex, Swiss Life Mortgage Index
8) Mortgage rates fell from 5.22% in December 2024
In early January 2025, mortgage rates dropped to 5.13%, down from 5.22% in December 2024.
This change was largely driven by the decision of the three largest banks in the Czech Republic, including Česká spořitelna and Raiffeisenbank, to significantly lower their mortgage rates at the end of 2024. This strategic move made borrowing more appealing for those looking to buy a home.
While the mortgage market is expected to continue its downward trend in 2025, the pace might slow due to ongoing inflation concerns. The Czech National Bank has projected an inflation rate of 2.6% for 2025, which is slightly above their target of 2%.
For potential homeowners, this means that while rates are currently favorable, they should keep an eye on inflation trends. Inflation can impact borrowing costs and the overall affordability of purchasing a property.
Despite the current dip in rates, the market's future remains uncertain. Economic factors like inflation could influence whether rates continue to fall or stabilize.
As you consider buying property, it's crucial to stay informed about these economic indicators. They can affect your mortgage options and the long-term cost of your investment.
Sources: Prague Daily News, Penize.cz
We made this infographic to show you how property prices in the Czech Republic compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Ostrava's rental yield is projected to be around 6% by 2025
The average rental yield in Ostrava is expected to be around 6% by 2025, making it an attractive option for property investors.
Back in 2023, Ostrava's rental yield was already impressive at about 5.4%. This figure stood out, especially when compared to other Czech regions. For instance, Ústí nad Labem boasted a rental yield of over 6.3% during the same period, highlighting Ostrava's potential for rental investments.
The rise in rental yields is largely due to the gap between property prices and rental rates. In areas outside Prague, property prices have dropped by as much as 30%, while rental rates have surged, sometimes by 25% or more compared to the previous year. This disparity makes real estate investment more appealing, especially with interest rates hovering between 4% and 6%.
Looking ahead to 2025, the real estate market is poised for further growth. This optimism is fueled by ongoing investment activities and improved financing conditions. According to CBRE, commercial real estate investments in the Czech Republic are projected to see a significant boost, with the total investment volume expected to surpass 2 billion euros in 2025.
Sources: E15, Komora Plus
10) Housing starts fell by 5% and completions by 2% in the first half of 2024
In the first half of 2024, housing starts and completions in the Czech Republic declined by 5% and 2% respectively.
Several factors are behind this dip in the real estate market. The overall construction activity faced hurdles due to economic conditions and regulatory issues. Planning consents hit historically low levels, meaning fewer projects got the green light, which directly impacted the number of new homes being built.
Affordability is another big issue. Demand for new housing units is high, especially in major cities like Prague, but the construction process is slow. Bureaucratic hurdles and financial constraints make it tough to build enough homes to meet this demand, contributing to the decline in housing completions.
Despite a recovery in the real estate market, the actual construction of new homes is lagging behind demand. This is particularly noticeable in urban areas where the need for housing is most acute.
In Prague, for instance, the city is grappling with some of the least affordable housing in Europe. This affordability crisis is exacerbated by the slow pace of new construction, which can't keep up with the growing demand.
These challenges create a complex situation where, even with a recovering market, the supply of new homes remains insufficient. The gap between demand and supply continues to widen, leaving potential buyers in a tough spot.
Sources: Reallocate.cz, Savills, Index Prosperity
11) Shopping center vacancy rates remain low at about 4%
The shopping center vacancy rate in the Czech Republic has remained impressively low, hovering around 4% through 2023 and 2024.
This stability is largely due to a consistent demand for retail spaces, even as the global retail sector faces numerous challenges. The Czech market's resilience is evident, thanks to the strategic locations of its shopping centers, which continue to draw in both local and international retailers.
Moreover, the Czech real estate market has seen a robust investment volume, with projections to surpass €3 billion by 2025. This influx of capital is a key factor in keeping vacancy rates low, as investors are eager to develop and sustain high-quality retail spaces that cater to modern consumer needs.
These shopping centers are strategically positioned, making them attractive to a diverse range of retailers. This strategic placement is a significant reason why vacancy rates have not spiked, even amidst global economic shifts.
Investors are particularly interested in the Czech market because of its potential for growth and stability. The steady influx of investment ensures that retail spaces are not only maintained but also enhanced to meet evolving consumer expectations.
As a result, the Czech Republic's shopping centers continue to thrive, maintaining a low vacancy rate that is uncommon in many other regions. This trend is expected to persist, supported by ongoing investments and strategic retail placements.
Sources: Property Forum, CIJ Europe, Office Guide
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12) By 2025, the average price per square meter for homes in Olomouc is expected to be about 45,000 CZK
In 2023, Olomouc's real estate market faced hurdles due to high interest rates and strict mortgage requirements.
This led to a slowdown in new construction projects, meaning fewer homes were being built and sold. At that time, the average price per square meter for apartments in Olomouc hovered around 79,588 CZK. While prices showed signs of stabilizing, any increases were minor. Developers were cautiously planning new projects, and interest in buying property was growing, albeit slowly.
Across the Czech Republic, the property market was similarly impacted by high interest rates and inflation. In early 2023, the average apartment price nationwide saw a slight uptick, but when adjusted for inflation, there was a noticeable decline. This cautious atmosphere influenced property prices in Olomouc as well.
Looking ahead, experts predict that by 2025, the average price per square meter for residential properties in Olomouc will be around 45,000 CZK. This forecast reflects a more balanced market as interest rates and inflation stabilize.
For potential buyers, this means a more favorable environment for purchasing property in Olomouc, with prices expected to be more accessible compared to the peak in 2023. The market's gradual recovery and the anticipated price adjustments could present opportunities for investment.
As the market evolves, keeping an eye on interest rates and inflation trends will be crucial for making informed decisions. The expected price per square meter in 2025 suggests a shift towards a more stable and potentially lucrative real estate market in Olomouc.
Sources: Olomoucký Deník, Global Property Guide
13) Older apartments in Prague average 124,000 CZK per square meter
The average cost of older apartments in Prague is 124,000 CZK per square meter.
In early 2024, prices for these apartments were around 127,000 CZK per square meter, showing a 17% increase from the previous year. This rise is largely due to high demand and a limited supply of available properties.
Older apartments are generally more affordable than new ones, which are priced at 152,000 CZK per square meter. This makes them an attractive option for buyers looking to save money.
Prices in Prague are notably higher compared to other cities. For instance, in Brno, older apartments cost about 94,000 CZK per square meter, underscoring Prague's status as a pricier market.
Sources: E15.cz, E15.cz, Expats.cz
14) Retail spending in the Czech Republic is expected to grow by 4.1% annually in 2025
Retail spending in the Czech Republic is set to grow by 4.1% year-on-year in 2025.
According to the CBRE forecast, this growth has been building since 2024. In early 2024, retail sales increased by 3.9% year-on-year, and by the third quarter, they had jumped to 5.3%. This upward trend is expected to continue into 2025, thanks to stable foot traffic and rising sales.
The Fitch Solutions report paints a positive picture for Czech consumers in 2025. It suggests that inflation and household spending are bouncing back to pre-pandemic levels, which is great news for retail growth. While there are potential challenges like changes in the labor market and upcoming elections, the overall consumer outlook remains optimistic.
Shopping centers are doing well, with a low vacancy rate of about 4%. New projects and upgrades in retail parks are in progress, with a significant amount of space expected to be added to the market in 2025.
Sources: CBRE Forecast, Fitch Solutions Report, Property Forum
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Czech Republic. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Sales of new buildings nearly doubled year-on-year in the last quarter
In the third quarter of 2024, sales of new buildings in Prague almost doubled compared to the same period in 2023.
Imagine walking through Prague and seeing 5,350 new apartments sold—that's nearly twice as many as last year. This surge happened even during the summer, a time when the market usually cools down. People kept buying, defying the usual seasonal trends.
Why the rush? Well, the demand for new apartments stayed strong, and this consistent interest pushed sales through the roof. It's not just about numbers; it's about a city that's buzzing with activity and opportunity.
With more people eager to buy, prices naturally climbed. The average price per square meter in Prague hit 160,720 Czech korunas, marking a 6.8% increase year-on-year. This isn't just a statistic; it's a sign of a market that's thriving and growing.
For anyone considering a move or investment, these figures paint a picture of a vibrant real estate scene. The city's appeal is undeniable, and the numbers back it up.
So, if you're thinking about buying property in Prague, now might be the time. The market is hot, and the opportunities are plentiful.
Source: Ceskenoviny
16) Residential property sales in Plzeň are expected to increase by 17% by 2025
The number of residential properties sold in Plzeň is projected to rise by 17% by 2025.
In 2023, Plzeň's real estate market started bouncing back. Buyers with their own funds jumped on more favorable prices, setting the stage for future growth. By the end of the year, the rental market had found its footing, and as 2024 rolled in, demand for both non-residential and residential properties began to climb.
Residential rentals were especially hot in areas like Doubravka, Slovany, and Severní předměstí. This surge in interest, along with the rental market's stabilization, paved the way for the expected rise in property sales. New residential projects and upgrades to existing ones, offering higher standards of completion, are likely to push rents up and further fuel demand.
These developments are not just about numbers; they reflect a broader trend. The city's appeal is growing, attracting more people who see Plzeň as a promising place to live and invest. The combination of new projects and improved living standards is making the city more attractive.
As the market evolves, it's clear that Plzeň is becoming a hotspot for real estate activity. The ongoing changes are expected to boost the local economy and create more opportunities for both buyers and sellers. This dynamic environment is drawing attention from investors looking to capitalize on the city's growth.
With these factors in play, the real estate landscape in Plzeň is set for an exciting transformation. The projected increase in property sales is a testament to the city's potential and the confidence investors have in its future. The market's recovery and growth are signs of a vibrant and promising real estate scene.
Sources: Engel & Völkers Market Report 2024/2025 for Plzeň, Engel & Völkers Market Report 2024/2025 for Plzeň (English)
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.
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