Slovakia and Czech Republic housing markets face stagnant prices and higher mortgage rates

In the second quarter of 2024, Slovakia’s new‑build apartment market showed almost no price growth. The average price reached 5,341 EUR/m² (including VAT), a modest 2.3 % rise year‑on‑year, while sales fell to 652 units from 742 the previous quarter and the number of listings rose to 4,231. Analyst Rudolf Bruchánik noted that demand is about 25 % lower than in the 2014‑2021 period and that high interest rates (3.5‑4 %) and a stagnant economy limit further improvement.

Meanwhile in the Czech Republic the average offered price for a flat is now about 5.6 million CZK, up 5.1 % annually, continuing a four‑and‑a‑half‑year price climb. Mortgage rates have barely changed, with only one bank lowering its rates in July. Experts expect new‑mortgage rates to stay between 5 % and 5.4 %, projecting a longer‑term norm around 4 % as swap‑rate pressures and geopolitical tensions keep borrowing costs elevated.