International Property News

Czech Property - Offer prices of flats in CR stop falling

21st October 2009

Offer prices of flats in the Czech Republic in the third quarter stopped their fall seen in the first half of the year and grew by 0.5 percent compared with the second quarter, the Czech Statistical Office (CSU) announced Tuesday.

Outside of Prague, prices of flats increased by 2.1 percent, but in Prague they fell by 1.4 percent.

"Real estate prices got more or less stabilised after the fall seen in the last roughly twelve months and buyers, who were waiting for further fall, are gradually returning to the market, said Ondrej Novotny, an analyst at international consulting company King Sturge.

Compared with average offer prices of flats in 2005, prices of flats in the whole of the Czech Republic are 56.5 percent higher, the statisticians said.

Housing in Prague is 43.2 percent more expensive against 2005, and the increase outside Prague is at 69.7 percent.

The biggest fall was seen for flats in prefabricated houses whose price sank by up to 20 percent depending on locality. Prices of flats in brick houses in good localities fell by 10 percent at most.

The third-quarter results do not necessarily mean the beginning of significant price hikes.

"For next year, we expect prices to be rather flat or to correct moderately upwards by zero to 5 percent. A gradual growth in residential real estate prices could start in 2011, but the growth pace will not be as fast as in the past three years," Novotny said.

Source: Prague Monitor