A new trend – interest in recreational properties is declining
The pandemic gave our nation, renowned for its love of cottages and country retreats, fresh momentum and provided a welcome escape from a bleak reality full of regulations and restrictions. Two years after this boom, however, the situation is reversing, with an increasing number of listings for attractive properties coming onto the market. The declining interest has not yet been significantly reflected in asking prices, says David Novotný of the real estate company Bohemian Estates.
Over the past two years, we have seen an intense boom in interest in cottages and country houses, as well as rising prices mirroring increased sales. “During the pandemic, Czechs invested heavily in holiday properties, and as a result we have seen the fastest growth ever in this property category in recent years. The supply of cottages and country houses in attractive locations fell to a historic low, with prospective buyers competing through their price offers. The trend is now slowly reversing – we are seeing a significant decline in demand. However, we cannot yet say that holiday properties have become cheaper as a result. They remain at their original price level,” says David Novotný, owner and managing director of Bohemian Estates real estate agency.
In the vast majority of regions, prices of holiday properties are continuing to rise steadily, by roughly low double-digit percentages year on year. In the long term, holiday properties are most expensive in the capital city of Prague. According to the Price Compass of the Sreality.cz property portal, prices are only beginning to fall in the Karlovy Vary Region, albeit only slightly so far. Since December 2021, this type of property has fallen in price by eleven percent in this region. Vysočina is also among the more affordable regions, while the Central Bohemian, Liberec and South Moravian regions are among the most expensive.
The pandemic had a major impact on interest in the renowned Czech national pastime and reduced the number of listings for cottages and country houses on various property portals to a record low. Now, after more than a year, the number of attractive holiday properties on offer is gradually increasing.
“The holiday property market has stabilised and the number of listings is growing again. There are around 70 % more cottages on the market than country houses. Demand is slowly returning to pre-Covid levels. Holiday properties are a seasonal matter, so interest is greatest before the season – meaning during the first four months of the year. Demand then declines slightly over the course of the year and is weakest during the autumn and winter months. Overall, however, it can be said that demand is weakening compared with the previous boom period. That does not mean there is any kind of collapse. The past two years were marked by extremely high demand due to Covid; interest is now normalising and returning to its former pre-pandemic patterns,” explains Novotný of Bohemian Estates.