Housing prices in the Czech Republic rose 8.7% year-on-year in the third quarter of 2018, a rate well over the 4.3 percent average across the European Union, says the newly released House Price Index (HPI), an analysis of residential property prices among EU countries, including prices of new and existing family houses, apartments, and land.
This represents the fourth-highest year-on-year growth rate among EU countries.
Across the European Union, prices rose by 4.3 percent with apartment prices in Slovenia in the third quarter up by 15.1 percent, followed by the Netherlands (10.2%), and Ireland (9.1%).
Decreases were observed in Italy (-0.8%), Romania (-0.7%), Finland (-0.4%), Slovakia (-0.3%), and Hungary (-0.2%).
These figures come from Eurostat, the statistical office of the European Union.
According to analysts from ING Bank, “Despite a relatively strong 3Q18, average 2018 HPI growth reached 8%, ranking seventh among EU countries. This was down from the 12% YoY growth seen in 2017, which was the highest rate in the EU. However, this still means that the average growth in the Czech property market is almost twice as high as the EU-average.”
Economists note that because of the insufficient supply of new flats, mainly in bigger Czech cities, related to administrative obstacles which have hindered new building permits, a more pronounced price decline is not predicted.