Welcome to the first edition of Real Estate Week — a short Monday look back at what happened in the housing and mortgage market over the past seven days. My goal is to give you a clear picture without needless scaremongering and, above all, without a flood of tables: what changed and what it means specifically for you. And if you love hard numbers, you'll find them all neatly together at the end of the article.
This week revolved mainly around two things — mortgages and flat prices. Let's keep it plain.
💶 Rates & mortgages
Summer isn't being kind to rates this year. Some banks nudged their mortgage rates up again in July. It's not a blanket reversal — a few banks actually eased slightly — but the "summer" direction is upward. At the same time, the market has calmed down after a hectic spring: people are still taking out plenty of mortgages, but the frantic rush of spring has faded.
What it means for buyers: the good news is that the panic is draining out of the market. You have a bit more breathing room to think and a little more space to negotiate. The bad news is that rate differences between banks are now noticeable — and over twenty years they add up to hundreds of thousands of crowns. So don't rely on the rate from "your" bank; it pays to compare several offers.
What it means for sellers: buyers now have a slightly pricier mortgage, so they're doing the math and are less willing to overpay. A realistic price and honest presentation matter more than a year ago — anyone betting on "let's try it high" risks their listing going stale.
If your fixed-rate period ends within a year, start sorting the refix well ahead of time, not a week before. And before you sign anything, get a comparison from at least three banks — and factor in fees and insurance, not just the advertised rate. What you ultimately pay is decided by total costs, not the first number in the ad.
🏘️ Prices & market (Brno and South Moravia)
Prices of older flats are still rising, but no longer as briskly as before. The market is shifting from "everything shoots up" mode into a calmer pace where the specific property matters more again — the location, its condition, and how well it's prepared for sale. Interestingly, demand is holding up and nice flats in sought-after locations disappear from the market fast. Few new flats are being built, so quality ones are always in short supply.
What it means for sellers: slower price growth is not a price drop. In sought-after locations — where Brno and South Moravia have long belonged — well-prepared flats hold both their price and their speed of sale. And this is exactly where the value of presentation shows: a quality-photographed property with a realistic price sells faster and on better terms than one just "dumped on a listing site".
What it means for buyers: nothing gets cheaper on its own, so don't count on a big price drop. It pays to be ready — have a pre-arranged mortgage and a clear idea of a fair price — so you can act the moment the right property appears.
A fast sale next door doesn't mean "it'll sell itself for anything". An inflated price puts people off even in a hot market — the listing goes stale and ends in price cuts. Better to set the right price from the very start.
💡 Tip of the week
If you're considering buying or selling in the coming months, calmly do two things now: get a realistic idea of what your property is worth (not based on the priciest listing on your street) and have a mortgage roughly pre-calculated. When the right opportunity comes, you'll be able to act quickly and from a position of strength — and that's what decides deals in today's market.
What does it mean for foreigners on the Czech real estate market?
Nothing new specifically for foreigners this week — the same rules apply for Czech, EU and non-EU citizens. This week's developments (rates nudging up, price growth cooling) affect everyone on the market equally.
If you're a foreigner looking to buy in the Czech Republic, here's the short, honest picture tied to this week's themes — rising rates and firm prices.
- Who can buy. As a rule, both EU and non-EU individuals can buy residential real estate in the Czech Republic in their own name; the days of major nationality restrictions on buying property here are gone. Rules can still differ for specific cases (for example certain agricultural or forest land), so for anything unusual, confirm your exact situation with a Czech lawyer before signing.
- Mortgages for foreigners. Czech banks do lend to foreigners, but conditions are stricter than for locals. What typically helps a lot: legal residence in the Czech Republic (EU citizens have an easier path; non-EU applicants usually need a residence permit), documented and stable income — ideally from a Czech employer — and often a larger deposit, so count on financing a smaller share of the price than a local would. Because rates nudged up this summer and differ noticeably between banks, comparing several offers matters even more for you.
- Currency. Mortgages and prices here are in Czech crowns (CZK), not euros. If your income is in another currency, factor in the exchange-rate risk on your monthly payment.
- Get local help. This market rewards local knowledge. I'd genuinely recommend leaning on three people: a local real estate agent who knows the specific neighbourhood and fair pricing, a Czech lawyer to check the contract and the land registry (kataster) records, and a translator/interpreter for contracts and the signing, since the binding documents are in Czech. It's the simplest way to avoid costly misunderstandings.
None of the above is legal advice — rules and bank conditions change and depend on your specific case. When in doubt, check with a Czech lawyer and your bank before you commit.
For those who like numbers
I promised hard data — here it is, sources included:
- Mortgages got pricier in July. According to the Hypoindex overview, roughly a quarter of the tracked banks raised rates, some fixations noticeably (Moneta, for example, by 0.6 percentage points on the one-year fixation). The lowest rates hovered around 4.6%, depending on the bank and the length of fixation. This was a partial rise, not a blanket reversal — some banks eased slightly instead. (source: Hypoindex.cz)
- Mortgage volume slowed after spring. June data showed the first more pronounced braking — the volume of newly granted mortgages fell about 4% month-on-month to CZK 36.5 billion. Even so, the year-to-date total is still well above last year: over CZK 216 billion since January, tens of billions more than in the same period a year ago. (source: Hypoindex.cz)
- Older-flat prices are rising more slowly. Up 13.3% year-on-year — still brisk, but the pace eased versus previous quarters. The average sat around CZK 92,000 per square metre, with large differences between regions. (source: Hypoindex.cz)
- Demand holds, supply vanishes fast. In the Central Bohemian region the average flat price crossed CZK 100,000 per square metre and flats sell markedly faster than before — the average listing time shortened over a decade from roughly 138 to 57 days, and for rentals it's a matter of days. (source: Hypoindex.cz)
- Construction is slow. Prague is nearing Nordic-capital price levels but lags far behind them in completed flats — which keeps feeding the pressure on prices and the fast disappearance of supply. (source: Hypoindex.cz)
Thanks for reading. See you in a week over whatever the market brings next.
— Pavel Maloušek, Realiťák Brno