In the Pilsen and Pardubice regions, prices rose by almost 13%. For the first time in history, the average price per meter in the Czech Republic exceeded CZK 100,000.

During the second quarter of this year, the Czech real estate market saw a further increase in the prices of sold flats. After a period of decline, the average price rose for the third quarter in a row, namely by 2.4% to CZK 101,700 per square metre, compared to 4% and CZK 99,300 per metre in the first quarter of this year. This is according to the latest data of the Deloitte Real Index, which is regularly published by Deloitte.

House prices rose in 12 out of 14 regions. The highest growth across the country was recorded in the Pilsen Region (+12.8%), the Pardubice Region (+12.7%), the Olomouc Region (+9.6%), the Vysočina Region (+9.2%) and the Moravian-Silesian Region (6.7%).

"The second quarter of this year brought continued growth in apartment prices across the Czech Republic. After a year of stagnating or declining prices in the Czech Republic, this is the third consecutive quarter of growth. Moreover, for the first time in history, the average transaction price in the Czech Republic exceeded CZK 100,000 per square metre, mainly due to the dominant residential markets in Prague and Brno. The current situation thus definitively confirms that the growth trend, which began with the reduction of interest rates, the fading of high inflation and the decline in energy prices, is continuing and will continue. There is an increase in demand, which is always reflected in rising prices of flats, " explains Petr Hána, a real estate market expert from Deloitte.

The most expensive flats are still in Prague, where growth was also recorded (by 5.7% to CZK 132,000 per square metre), the South Moravian Region (increase by 2.5% to CZK 104,500 per square metre) and the Central Bohemian Region (+5.1% to CZK 34,900 per square metre). On the other hand, the lowest prices of flats are still in the Ústí nad Labem Region (+4.2% to CZK 34,900 per sqm), the Karlovy Vary Region (-4.4% to CZK 44,300 per sqm) and the Moravian-Silesian Region (+6.7% to CZK 47,700 per sqm).

"During this spring, a total of 7,182 flats were sold in the whole Czech Republic. Most of them, 3 208, were in new buildings, followed by 2 226 flats in prefabricated houses and 1 748 units in brick houses, " adds Deloitte expert Petr Hána.

In Prague, the average price of flats rose by the aforementioned 5.7% to CZK 132,000 per sqm during the period, compared to 2.6% and CZK 124,900 per sqm in the first quarter of this year. Price increases were recorded in most of the city districts, the fastest ones being in Prague 7 (+14.0% to CZK 146,400 per sqm), Prague 2 (+9.9% to CZK 161,900), Prague 8 (+9.6% to CZK 138,400), Prague 9 (+5.5% to CZK 118,900) and Prague 3 (+5.4% to CZK 139,600). On the other hand, prices fell in two city districts, significantly in Prague 1 (-12.0% to CZK 172,700) and slightly in Prague 4 (-0.4% to CZK 118,600).

The most expensive properties in the capital are in Prague 1 (CZK 172,700 per sqm), Prague 2 (CZK 161,900 per sqm) and Prague 7 (CZK 146,400 per sqm). On the other hand, the cheapest flats in the capital are in Prague 4 (CZK 118,600 per sqm), Prague 9 (CZK 118,900 per sqm) and Prague 10 (CZK 120,000 per sqm).

"The Czech real estate market is heavily impacted by a chronic shortage of new housing construction. Every year, the number of new flats built falls short of demand by thousands. Unfortunately, there are no signs of improvement on the horizon. As a result, I believe that in the coming months and years, the domestic real estate market will continue on its current trajectory," adds Deloitte's Hána.

Since 2015, the Deloitte Real Index has been providing data on how the real prices of apartments in Prague and regional cities in the Czech Republic are developing. It collects data only from completed sales of flats that have been registered in the Land Registry in the form of purchase contracts. It compares the results with the previous quarter and also compares prices in individual segments such as new development, brick houses and prefabricated houses.