Comment by Jaromír Šindel, Chief Economist of the CBA: Even the third quarter of 2025 did not bring a significant recovery in household disposable income. Despite this, the household savings rate has been abnormally high for almost six years. In Q3, it was 18.4%. Weaker quarter-on-quarter growth in disposable income has not kept pace with house prices for six quarters in a row. On a year-over-year basis, we are comparing 3.4% growth in disposable income vs. a 10.8% increase in home purchase prices including land (HPI).
Real estate prices
The latest indicators on the development of the domestic real estate market, both from official CSO data and Flat Zone data.
Prices of flats and houses
flats: thous. CZK / m2; RD: 100 thous. CZK per transaction
13.7
% yoy
Q3 / 2025
Comments
Comment by Jaromír Šindel, Chief Economist of the CBA: According to the Czech Statistical Office, realised prices of older flats in the Czech Republic rose by 3.7% quarter-on-quarter in the third quarter, which exceeds income growth for the seventh quarter already and maintains the too brisk annual pace of property prices at around 16%. Higher property prices are also making their way into the CNB's macroprudential capital policy settings, with discussion over the (arguably unscary) possible introduction of a sectoral systemic buffer, as well as less intuitive discussions over the role of investment activity by non-financial corporates in setting the countercyclical capital buffer.
Comment by Jaromír Šindel, Chief Economist of the CBA: The recovery in disposable income in Q2 was still dampened by fiscal policy, so it remained weaker compared to the increase in wages and property prices. Nevertheless, households managed to increase both consumption and their savings.
Economic commentary by Jaromír Šindel, Chief Economist of the CBA: I estimate overall growth in realised house prices of 4.2% quarter-on-quarter, which has outpaced wage growth for the sixth quarter in a row.
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
House prices up 10.7%
Sales of older and new homes increased by tens of percent during 2023