The Czech Republic`s rapidly developing real estate market is really able to stun with its enormous diversity of agents, properties, and prices.
2016 saw highly dynamic developments in the Czech residential market. The year was characterized by combining the existing market tendencies with administrative interventions by the government that had an impact on both the mortgage market and (by means thereof) the residential market. High demand, substantially lower supply (in all residential real estate segments) investment appetite and low-interest rates of mortgage loans in the long term were among the most significant market factors. Owing to the lack of new offering, the obtainable housing stock (particularly new formation) was incessantly sold out in the long term.
For instance, there is a forty percent decrease in approachable new suites in Prague for over 1,5 years. Concerning the development of price, the average transaction price of the living property which is situated in the Czech`s capital or zonal towns has shown an annual enlargement of more than fifteen percent.
One must draw attention to the fact that CZK 48,100 per square meter was the average apartment value for those suites which were sold at the end of 2016. Furthermore, the costliest suites were in development projects with the price of CZK 59990 per square meter; the least costly suites were detected in specific high-altitude blocks. Our specialists have concluded that the medium transaction price of accomplished suites in the Czech`s capital development projects reached CZK 63,500 per square meter in filed acquisition agreements, yet the average suggestion value surpassed CZK 79000 per square meter.
Obviously, the main reason why buying property in the Czech Republic is so appealing is that its prices seem to be affordable or even extremely low for foreigners from those countries, where exchange rates foster their local currency.
In view of the current situation, a major change in developments can hardly be anticipated in 2019. The indispensable deficit in new construction is so enormous that it could only be eliminated by an above-average proposition of new suites which, however, is not accessible on the marketplace.