Study: Panel apartments in the Czech Republic increased in price by 19.5 percent year-on-year

Prague – Apartments in panel buildings in the Czech Republic increased in price year-on-year by 19.5 percent to 38,452 crowns per square meter at the end of February. The most expensive apartments were in Prague, with an average price of 82,313 crowns per square meter, while the cheapest were in the Ústí Region (17,491 CZK/m²). Prices for apartments in brick buildings rose by 10.8 percent to 39,883 crowns per square meter. The difference between the average price of brick and panel apartments decreased year-on-year by 2,688 crowns per square meter. This comes from data from the company Reas, which maps the real estate market in the Czech Republic based on data from the land register.

"Panel buildings were initially an attempt to quickly solve the housing crisis in socialist Czechoslovakia. The most were built between 1958 and 1990, and in 1985, panel construction accounted for almost 99 percent of all new apartments in apartment buildings. Today, they are an interesting alternative to expensive brick and monolithic buildings, not only for those interested in home ownership but also for investors. This understandably drives prices up," said Michal Makoš, director of the company Reas.

After Prague, the most expensive panel apartments were in the South Moravian (58,195 crowns per square meter), Central Bohemian (43,959 crowns), and Pardubice regions (40,825 crowns). Following the cheapest Ústí Region were the Karlovy Vary (18,728 crowns) and Moravian-Silesian regions (24,639 crowns per square meter).

The prices of panel apartments increased the most year-on-year in the Plzeň (by 36.5 percent), South Moravian (by 26.9 percent), and Moravian-Silesian regions (by 26.4 percent). The least increase was observed in the Karlovy Vary (by 8.6 percent), Central Bohemian (by 13.2 percent), and Zlín regions (by 13.4 percent).

"The situation in the apartment market forces potential buyers of real estate to seek other alternatives. A major advantage of panel apartments, in addition to their price, is often a good location and accessibility of public amenities. Many panel buildings have also undergone significant revitalization in recent years, so they are no longer grey, unattractive cubes but rather modern housing that meets even more demanding requirements," Makoš added.

According to Reas data, the most panel apartments were sold last year in Prague, 3,178. This was followed by the Ústí Region with 2,541 apartments and the Moravian-Silesian Region with 2,321 apartments. A total of 19,957 apartments in panel buildings were sold in the Czech Republic.

Average prices of apartments in panel buildings in individual regions in January and February (in CZK/m²) and year-on-year comparison (in percent):

Region	Price	Year-on-year Comparison
Prague	82,313	15.5
South Bohemian	34,138	15.9
South Moravian	58,195	26.9
Karlovy Vary	18,728	8.6
Vysočina	37,112	18.1
Hradec Králové	37,490	16.8
Liberec	33,765	23.7
Moravian-Silesian	24,639	26.4
Olomouc	33,810	15.8
Pardubice	40,825	19.6
Plzeň	40,484	36.5
Central Bohemian	43,959	13.2
Ústí	17,491	22.3
Zlín	35,383	13.4
Average CZ	38,452	19.5

Source: Reas