The Czechs are once again buying small houses and cottages, and prices have stabilized

During the COVID lockdowns, the prices of houses and cottages soared significantly, only to then drop back to a fifth of what they were last year. They have now stabilized, and interest has picked up again. Cottage prices usually start at eight hundred thousand crowns, cabins at 1.2 million, and cabins at around 2.5 million crowns.

However, if a cabin is in good condition, you should expect to pay four million or more. These are also the prices for luxury cabins. In the annual comparison, interest in small houses and cottages is overall one-fifth higher, with the most significant demand for recreational places with good accessibility for residents of Prague.

Prospective buyers often also require comfort in a small house and frequently seek accommodation within an hour and a half of a major city. Most buyers of these properties within the capital’s reach do not need a mortgage to purchase them. Property listing prices for holiday homes on Bezrealitky.cz have decreased on average from 15% to 20%, and in extreme cases up to 40%, compared to the COVID peaks.

On the Sreality.cz server, almost three thousand cabins and small houses are offered throughout the Czech Republic, mainly through real estate agencies. According to intermediaries, five hundred buildings are already ready for demolition, reconstruction, or ongoing repair.

The rest should be in good condition, but it’s not always the case, and in some instances, only a superficial “brush-up” masks the real condition of the building. Hundreds of other small houses and cabins are offered directly by owners on Bezrealitky.cz.

However, the line between a vacation property and a so-called second home has blurred in a year-round residential cottage. Year-round habitable cabins cost as much as single-family homes in a given location.

Second homes are often bought by people for whom their current city residence is beyond their means. They invest in quality properties outside the city, with the awareness that they will eventually sell or permanently move there.

Location is also crucial in this case, while accessibility and tranquility are particularly appreciated for recreational properties. So, it’s normal for a cottage in a desirable location and in excellent condition to cost a million more than a cabin in need of expensive repairs in the middle of a village near the state border or outside a recreational area.

Properties slated for demolition also disappear from the market because people buy them for the quality of the land. Buildable land continues to decrease and has become more expensive compared to last year, even as mortgages have become more expensive.

Apartments and mountain cabins are a very specific area. A studio in a mountain location costs around five million crowns. For instance, a villa in Kvilda, Šumava, costs twenty-two million, while small houses with beautiful plots of land range from twelve to fifteen million.

These vacation properties tend to be more expensive per square meter than regular apartments in Prague, which is due to the profitability of short-term rentals in mountain apartments.