Prague remains the absolute leader in housing prices in the Czech Republic
As Radio Prague notes, real estate prices continue to show growth this year as well. If in the summer of 2015 a one-room studio cost on average 720,000 crowns (26,500 euros), this year it will cost 280,000 crowns (10,300 euros) more. Last year, those wishing to buy a three-room apartment in the Czech Republic could do so for an average of 1.5 million crowns (55,500 euros); currently it will cost 200,000 crowns (7,400 euros) more.
Of course, the price of an apartment significantly depends on its location. The absolute leader in housing prices remains Prague. However, prices in the Czech capital are growing slower than in some other regions. And while in the Karlovy Vary, South Moravian, and Liberec regions they rose by 15%, in Prague the increase did not exceed 5%.
Despite the increase in prices, those wishing to purchase residential real estate should not postpone the purchase, as mortgage interest rates in the Czech Republic remain quite low. In February 2016, they reached a historic low, just above 2%. The average Czech family spends 30% of its income on mortgage interest payments.
Moreover, according to experts, the market has developed a favorable situation for buying housing for rental purposes. The greatest benefit will come from investing in an apartment in a panel building, as it will require half the investment – when renting out such an apartment, the difference will be only 25% compared to housing in a brick building.
In terms of rental costs, Prague also ranks first. Renting an apartment in the capital costs on average twice as much as in the provinces. The average rent for an apartment in Prague is 14,000 crowns (518 euros), in other regions – 7,500 crowns (278 euros) per month.