In 2025, the demand for real estate will rise again, which will drive up prices

Prague – In 2025, the demand for Czech real estate is expected to rise again, leading to further price increases. The reason for the heightened interest will be the improved economic situation and a gradual slight decrease in mortgage rates. Similar to this year, older apartments should also see price increases of a few percentage points due to lower residential construction and thus lower market supply. Alongside ownership housing, rental prices are expected to rise in a similar manner. The value of investments in commercial real estate is also projected to grow compared to this year. This was stated by experts from the real estate sector interviewed by ČTK.

"Next year, a continued trend of gradual slight price increases and a rise in demand for real estate can be expected. There are several reasons – whether it is the decreasing interest rates for mortgages or the recovering economy. Apartments have become more expensive, and if we look back at the pre-COVID period, the increase is indeed quite high. Family homes are becoming a luxury that most households cannot afford even with the use of a mortgage," said Michal Macek, owner of a real estate group.

According to Lumír Kunz, managing director of a real estate platform, older properties should see a similar trend in 2025 as this year. "There will still be a shortage of new projects on the market, so those looking to obtain their own housing will likely consider older properties in good condition. The probable decrease in mortgage rates combined with the mentioned insufficient supply will allow sellers to continue raising prices," stated Kunz.

According to another real estate consulting company, ownership and rental housing should increase in price by five to ten percent next year. The lower availability of owning a home will lead to further development of rental housing. For investors, apart from apartments built for rental purposes, logistics remains an attractive sector, the company stated.

After this year's decline in industrial production and challenges in the automotive industry, only a slight recovery is expected next year. However, some investors are showing interest in multifunctional centers and hotels, according to the firm. The office market is also slowly recovering from the downturn, as post-COVID, people are again spending more time at work instead of working from home.

These trends are largely confirmed by another real estate consulting company. According to them, investment activity is expected to be significant in the first quarter, as several larger transactions are currently in the final stages of negotiation. Investments in commercial real estate in the Czech Republic are expected to significantly exceed 50 billion CZK (two billion euros) in 2025, they stated. This year, it is around 38 billion CZK (1.5 billion euros). Domestic entities are expected to have a main share in the investments, but the company also anticipates a renewed growth of interest from foreign investors.