International Property News

Prague housing prices fall for the first time since 2005

2nd February 2009

The prices of flats in Prague decreased by 1.7 percent quarter-on-quarter in Q4 2008, falling for the first time since 2005, the Czech Statistical Office (CSU) said on Monday.

In the entire Czech Republic, the growth of prices of flats, uninterrupted since 2005, came close to a halt, as the prices increased by mere 0.2 percent, the CSU said.

In Q3 2008, the prices of flats in Prague rose by 6.1 percent and in the entire Czech Republic by 5.4 percent.

The second half of last year saw consequences of the economic crisis affecting the flat market, analyst Ondrej Novotny of the company King Sturge said. "Its (the crisis) expressions include cooling of the demand for housing and slowing of the residential housing price growth," Novotny said.

According to the company EuroNet Media, the average prices of flats in the whole of the Czech Republic even decreased by 4.5 percent in January.

Building authorities permitted the construction of 3,140 flats in November, up 9.3 percent year-on-year, the CSU said. Out of this, 2,674 flats will arise from new construction, which is 313 more than in the same period of 2007.

Source: Prague Monitor