Czech Real Estate Market in a Turbulent Period 2018–2024: Market Dynamics, Structural Constraints, and Policy Implications

Abstract This study provides a comprehensive analysis of the Czech real estate market during the turbulent period of 2018–2024, marked by significant economic fluctuations, the COVID-19 pandemic, and geopolitical events. Drawing on an extensive dataset from the EVAL Software, the research utilizes offer prices to examine market dynamics, regional disparities, and the effects of external shocks. The findings reveal diverging trajectories: while sale prices surged until mid-2022 driven by low interest rates before stabilizing due to monetary tightening, the rental market experienced a pandemic-induced decline followed by a strong rebound fueled by renewed demand and the refugee influx. A key contribution of this study is the application of the Housing Affordability Index (HAI) and Rental Affordability Index (RAI), which quantify severe affordability constraints in metropolitan areas like Prague and Brno compared to structurally weaker regions. Furthermore, the analysis of online listing volumes highlights significant supply-side volatility, particularly the fluctuation in the availability of specific apartment sizes. Regression analysis confirms a strengthening correlation between sale and rental prices in the post-pandemic period, underscoring the interconnectedness of these sectors. The study concludes by addressing supply-demand imbalances and regulatory constraints, providing actionable insights for policymakers to enhance housing accessibility and market resilience.