A residential development project Ctěnický háj in Přezletice.
According to current data, the average amount of a newly granted mortgage is 4.07 million crowns, whereas at the end of 2024, this amount was around 3.86 million crowns. This increase confirms the ongoing upward trend that began in 2022, and although developments in previous years were marked by several significant changes, the market situation is now stabilizing.
In 2021–2022, there was a sharp decline in the average mortgage amount due to the deterioration of the geopolitical and economic situation, as well as the tightening of rules for assessing applicants’ creditworthiness. At that time, many households were unable to secure the desired loan amount and had to opt for more modest options or seek other sources of financing. Since 2022, however, these conditions have been easing, and the market has begun to grow again.
In 2024, the volume of newly granted mortgages reached 228 billion crowns, the second-highest figure in the history of the Czech Republic. The mortgage market is thus experiencing a significant recovery.
Another positive factor is the gradual, moderate decline in interest rates—the current average mortgage interest rate stands at 4.68%. Combined with the relaxed rules for assessing clients’ creditworthiness, this is leading to greater access to housing financing.
However, the growing real estate market also plays a key role, reflecting favorable economic trends and increased buying interest among clients. Thanks to greater confidence in financial stability, clients are more frequently carrying out their plans to purchase their own homes.
Interior of a model apartment in the Arcus City - Timber Prague development.
The current average monthly mortgage payment is approximately 5,400 CZK per 1 million CZK borrowed, with an average repayment term of 27.5 years. For an average mortgage of 4.07 million CZK, this translates to a monthly payment of around 22,000 CZK.
This trend not only illustrates economic changes but also a shift in consumer behavior. Growing confidence in the economy and more favorable conditions are thus significantly boosting households’ willingness to carry out their plans and strengthening overall activity in both the real estate and mortgage markets.
