In keeping with tradition, Svoboda & Williams is publishing its freshly completed analysis of the preceding half-year in the premium real estate market just in time for the summer vacation. We began 2025 in full force—the long-delayed demand, falling mortgage rates, and thirst to find bargain deals ahead of the expected rise in prices created a buying hype at the start of the year. Massive buyer-side interest subsequently translated into a significant year-on-year price growth.
Although the market tempo quieted down after a turbulent January, prices continue to increase at a stable rate. This can also be seen in the valuation of new residential projects, which continues to reflect people’s confidence in the long-term potential of an unsaturated market, especially in large cities. Prague, Brno, and Ostrava absorb quality listings without batting an eye, but the situation is different in the countryside and outlying regions. The recreational property market, especially in overdeveloped mountain locations, is now stagnant. After the pandemic boom in interest in these properties, demand has decreased sharply and supply now far exceeds buyers’ interest.
Czech capital, on the other hand, is increasingly and confidently looking beyond its borders. As partners of Christie's International Real Estate, one of the leaders in the global market, we want to provide our clients with attractive investment opportunities abroad as well. And so we recently hired someone with extensive experience in the international real estate business. In addition to traditional beach destinations, we currently see a high potential in the German market, which is attractive due to its geographical proximity, long-term excellent performance, and temporary price correction.
At the same time, we’re observing with interest the growing focus of foreign investors on the Czech market. Compared to the previous period, in the past six months 14% of all achieved transactions were by foreigners living in the Czech Republic. A significant share of this increase is due to Slovak capital, which is entering the Czech market with increasing momentum. In summary, today’s world is a fluctuating space full of uncertainty and geopolitical changes. But what hasn’t changed is the fact that premium real estate has maintained its role as a stable and rational investment pillar.