Economic growth, low mortgage rates, and increasing foreign demand continue to fuel a strong housing market in the Czech Republic. According to the Czech Statistical Office, apartment prices rose by 5.42% (4.93% in real terms) during the year to end-Q3 2015, marking the seventh consecutive quarter of robust price increases.
The average price of new dwellings sold rose by an estimated 4.3% (3.2% in real terms), according to the Czech National Bank, and existing dwellings sold were up 3.6% (2.5% in real terms), though still down by 3% from the market’s all-time high in the third quarter of 2008.
Housing demand is also rising sharply, mostly due to improving economic conditions and low mortgage rates. According to local real estate experts, the number of apartments sold in 2015 is greater than pre-crisis 2008 demand.
Another factor driving growth is an increased demand from foreign buyers, as well as Czech expats working and living elsewhere in the EU. The undervalued koruna is making Czech properties attracting to foreign buyers, according to real estate experts.