Are you thinking about buying a new home for your family? Then you may be surprised to learn that buying a family house can be the more economical option compared with a flat.
In the past, it was flats that were seen as something of a compromise solution for those who did not have enough money to buy a family house of their own. In a number of regions, however, the situation is starting to turn around. Buying or building your own house can be a way to escape the rising prices of flats in new developer projects and get a better price per square metre.
An unexpected drop in prices, and not only in Prague
Only last year, property in the Czech Republic was breaking records. Houses rose by 20% (and in some places far more), flats by 18% on average. Yet looking at the new data published by the Hypoindex portal, one is tempted to ask “where are the snows of yesteryear?”
Year-on-year growth in family house prices has come to a halt at 3% nationwide, while for flats it stands at around 6%. But beware, the regional differences need to be taken into account. And it is precisely those that reveal a surprising trend. Apart from the Liberec Region, there was one more where prices not only failed to grow last year, but even fell slightly. And that is the territory of the capital, Prague.
A comparison of data from the centre and the outskirts of the capital shows that not all of Prague is the same
This is also a certain sign of saturation in the capital's property market. The price of an average Prague family house fell by roughly 800 thousand last year and dropped back below the 20 million crown mark. What did rise, on the other hand, were price tags on houses on the outskirts, as shown by data from districts such as Prague-East and Prague-West. Flats are also getting markedly more expensive there, with prices now approaching those in Prague itself. This is especially true in places that are easily accessible by regular train services.
A striking gap between the capital and the rest of the country
It should be added that Prague and its surroundings continue to form, statistically speaking, a “state within a state”, since the average price of a family house in the Czech Republic last year reached 6.9 million Kč. That is almost three times less than the average in the capital. Yet according to Czech Statistical Office figures, Prague exceeds the national average wage by “only” 26.6%, which in practice means that housing in the capital is considerably less affordable for families than elsewhere.
Would you like to keep track of the current situation on the property market and receive tips on interesting investments? Do not hesitate to get in touch with us. We offer real estate services under the Ma Maison Premier Properties brand as well as comprehensive property management services FLAT SERVICE Partner and Garant. To find out more, call us on +420 277 000 330, or contact us by e-mail at sales@flatservice.cz.
